The Building Act 2004

We look at the changes introduced by the new Building Act 2004 and what this will mean for consumers.

The Building Act 2004 replaces the Building Act 1991

The Building Act 2004 replaces the Building Act 1991, which was repealed on 31 March 2005. Some of the provisions in the new Act came into force on 30 November 2004, however, the majority of the provisions relating to building controls came into force on 31 March 2005.

Either your consent was issued prior to 31 March and is subject to special transitional provisions or your consent is issued on or after 31 March and is subject to the new Act only.

The new Building Act 2004

For many of us, the biggest investment we make during our lives is in our homes. We need assurance that while other factors, like market forces, may affect our investment, at least our homes are built right from the start.

The Building Act 2004 has been introduced to improve building controls and building practices in the New Zealand building industry. It is about ensuring that buildings are designed and built right first time.

Under the Building Act 2004 people can expect:

1. Clearer standards on building construction.
2. Better guidance on how those standards can be met.
3. Certainty that qualified and capable people are undertaking building design, construction and inspection.
4. Better scrutiny of the building consent and inspection process.
5. More protection for homeowners through the introduction of mandatory warranties.

Why the new Act was introduced

In the years after the 1991 Act came into force, it became evident that some aspects of the building controls system were not working as well as intended. The most striking example of this is the leaky building problem where some buildings built in recent years have leaked, causing rotting to the timber framework. Some of these buildings have needed extensive remedial work.

An investigation into the leaky building problem found there were systemic problems with the building control system, i.e. no one factor was responsible for what went wrong – rather it was the result of the complex interplay of a number of factors, including problems with design and construction techniques, and with building consent and inspection processes.

As a result of this and other matters, new Building Act 2004 was introduced. There is also an ongoing review of the Building Code taking place.

What the Act means for homeowners

1. From 30 November 2004, all contracts for building work relating to household units (meaning houses, units, and apartments) come with implied warranties about the quality of the building work.
2. From 31 March 2005, new processes around the issuing of building consents and inspections will be in place. The main focus is on measuring the building work against the consent documentation.
3. From 2009, compulsory building practitioner licensing will mean certain building work, including work in the home that is critical for health and safety, will need to be done or supervised by someone with a building practitioner licence. The licensing regime will include complaints procedures and a disciplinary process, if consumers are unhappy with the standard of building work.

For more information on the Building Act 2004, visit the Department of Building and Housing website.