Property Council New Zealand has welcomed this week’s announcement by Building and Construction Minister Chris Penk, describing the reforms as a significant step toward a faster, more consistent, and more accountable building system.
The Government has confirmed plans to replace joint and several liability with a proportionate liability model and enable councils to voluntarily consolidate their Building Consent Authority (BCA) functions.
Property Council Chief Executive Leonie Freeman said the changes strike at the heart of long-standing frustrations with New Zealand’s consenting regime.
“Joint and several liability has often left councils as the last man standing. Proportionate liability changes this – a move welcomed by the development community,” Freeman said.
“This change ensures accountability is spread across the entire construction pipeline, rather than unfairly burdening local authorities and their ratepayers. It should also give councils greater confidence when signing off building work, easing the risk-averse behaviour that currently slows down consenting, drives up costs, and stifles innovation.”
Freeman noted that Property Council members are open to sharing risk if it creates greater certainty for the market.
“We look forward to seeing the detail of the proposed professional indemnity insurance and home warranty mechanisms, as this information will be crucial for providing confidence to the sector.”
On the proposed consolidation of BCAs, Freeman said the move could be transformative if widely adopted by councils.
“Sixty-six different interpretations of the Building Code is not the solution to fix a broken consenting system. The effectiveness of this reform will ultimately rely on councils acknowledging the need for change.”
The reforms build on the Government’s earlier moves to open the door for new and alternative approved building products from overseas.
“By addressing both consenting and liability, the Government is tackling two of the biggest blockages facing our sector. These changes have the potential to reduce costs, remove delays, and deliver a more agile, innovative, and productive building system,” Freeman said.