FOR IMMEDIATE RELEASE
Property Council New Zealand has welcomed today’s announcement from the Government, describing the reforms as a pragmatic step toward a more consistent and accountable building system.
Chief Executive Leonie Freeman said the move to replace joint and several liability with a proportionate liability model, alongside enabling voluntary consolidation of Building Consent Authorities (BCAs), addresses long-standing issues that have created cost and delay in the sector.
“Joint and several liability has often left councils as the last man standing. Proportionate liability changes this – a shift that the development community supports,” Freeman said.
“Spreading accountability more fairly across the construction pipeline should ease pressure on councils and provide greater certainty for the market. We expect this will also help reduce the risk-averse behaviour that slows down consenting and drives up costs.”
Freeman noted that Property Council members are prepared to play their part.
“Our members are open to sharing liability if it gives councils greater confidence and improves consistency. The detail around mechanisms such as professional indemnity insurance and home warranties will be important for ensuring clarity.”
On BCA consolidation, Freeman said the change could help remove unnecessary complexity.
“Sixty-six different interpretations of the Building Code create inconsistency and duplication. A regionalised model could help streamline processes, but its success will depend on councils’ willingness to work together.”
Freeman said the reforms build on earlier moves to improve access to new building products.
“Addressing both consenting and liability settings is a step in the right direction. These changes have the potential to remove blockages, reduce costs, and provide a more predictable system for everyone involved in the building process.”
ENDS
For further comment please contact:
Leonie Freeman | Chief Executive | 027 436 6526 | leonie@propertynz.co.nz