Better performance monitoring and system stewardship

This chapter proposed 3 initiatives:

• MBIE obtaining more and better information about the issues facing, and performance of, the building consent system.
• On the basis of available information, MBIE being more responsive to issues, risks, and opportunities through action.
• MBIE providing better direction, education, and quality guidance to the building sector. This includes identifying where further information is required by the sector and improving the quality and accessibility of that information.

Submitters were asked:

1. whether these 3 initiatives would enable MBIE to become a better steward and central regulator
2. which initiatives should be prioritised and why
3. if there was anything else MBIE needs to do to become a better steward and central regulator.

Broadly speaking, submitters agreed that MBIE could improve its oversight and stewardship functions. Submitters largely agreed that the three proposed initiatives would be worthwhile and contribute to improved stewardship and oversight. Overall, submitters felt that:

• MBIE must take a stronger role to improve performance of the regulatory system
• System performance improvements needs to include system participants through collaboration
• better monitoring and increased responsiveness to issues go hand-in-hand
• providing good information is crucial, but all three initiatives need to work in tandem.

There was strong engagement from BCAs and other system participants

145 submitters responded to questions from this chapter. Of these, 63 came from individuals, 58 from organisations, and 24 were from building consent authorities.

131 submitters responded to question one about whether the 3 proposed initiatives would enable MBIE to become a better steward and central regulator. Of these, 71 agreed the initiatives would have the desired effect, while 5 disagreed and 8 were unsure. 36 submissions didn’t indicate their level of agreement and only provided recommendations. All submissions from building consent authorities supported these initiatives.

117 submitters responded to question 2 about which of the initiatives should be prioritised. The following priorities were identified:

• providing quality information to the sector
• better collaboration with BCAs and the sector
• providing a national BCA or national system
• obtaining better information
• acting on available information
• all three proposed initiatives equally, and
• upskilling BCAs.

Building consent authorities primarily supported prioritising the 3 initiatives as a package. Where building consent authorities recommended prioritising specific initiatives, they recommended prioritising obtaining better information (monitoring building consent authorities and the sector for issues) and providing better information (often noting that this information should address the findings from monitoring and identified issues).

114 submitters responded to question 3 inviting them to suggest other things MBIE needs to do to become a better steward and central regulator.

MBIE must take a stronger role to drive improvements in the regulatory system

Across the 3 questions, 48 submitters expressed support for MBIE taking a stronger role as regulatory steward and central regulator. Many submitters considered MBIE to have a “hands-off” approach with building consent authorities, contributing to problems including inconsistency, risk aversion, and timeliness and capacity issues.

Submissions from building consent authorities indicated a need for MBIE to take a stronger role, including collaborating better with building consent authorities and making it easier for them to raise issues with MBIE. Building consent authorities also emphasised the importance of MBIE acting on the issues raised and providing better and more frequent guidance, as well as improving performance monitoring of the building consent authorities themselves.

Submitters also said that MBIE needs to better understand its role and what tools it has available to drive better consistency across system outcomes.

Submitters were particularly keen for MBIE to focus on driving consistency in the building consent system, suggesting several ways to best achieve this. Recommendations included stronger central coordination of the consenting system by MBIE as well as better and more frequent guidance provided to building consent authorities and the sector. Several submissions recommended implementing a national building consent authority or national system, which is considered as part of 'Chapter 6 – Better Delivery of Building Consent Services'. Many of the comments made in these submissions reflected a desire by system participants for the central regulator (in this case MBIE) to take a stronger role in driving national consistency.

Several submitters indicated concerns about the capacity and capability of system participants. This included raising concerns about the capability within MBIE to respond to the needs of the sector, providing negative feedback about their experiences with MBIE, and calling for better delivery of building consent services.

System change requires effective collaboration with system participants

For many submitters, a strong central regulator and effective collaboration at the system level go hand-in-hand. While MBIE’s relationship with building consent authorities was the focus for many, submitters identified that better collaboration across the system as a whole would be equally beneficial.

Across the 3 questions, 50 submitters recommended MBIE improve its consultation and collaboration across the system. Of these, 18 focused on engagement with building consent authorities, 20 focused on engagement with the sector and 11 focused on engagement with all system participants.

The reasons given focussed on 2 main ideas. First, stronger engagement would help MBIE better understand the issues faced by the sector and building consent authorities and use this to better direct interventions. Second, MBIE needs to work more closely with participants such as building consent authorities to help resolve issues rather than forcing them to rely on the determinations process or, alternatively, attempt to resolve complex issues in-house. Submitters noted that this contributes to inconsistency.

Several submissions indicated that stronger mechanisms for collaboration are needed. Submitters identified opportunities such as creating dedicated contacts at MBIE for each region to help align building consent authorities and sector participants, and better processes for raising issues and concerns with MBIE to make sure they are acted on if necessary – particularly where guidance or changes to the Building Code may be necessary.

Better monitoring and increased responsiveness to issues go hand-in-hand

Across the 3 questions, 41 submitters raised monitoring as a key issue. Of these, 13 focused on monitoring building consent authority performance while 8 focused on monitoring sector performance. Submitters agreed that without good monitoring, MBIE can’t accurately identify issues in the sector and provide support and guidance where it’s needed.

Submissions relating to monitoring building consent authorities included recommendations around updating the audit and accreditation system. Submissions focusing on monitoring the sector recommended strengthening monitoring of the quality of work and level of understanding of requirements at the building consent authority level. Broadly speaking, submitters favoured changes to system monitoring that would make information more standardised and output-focused and thought doing so would help drive consistency.

Across the 3 questions, 19 submitters indicated that MBIE needs to be more proactive when it comes to solving emerging issues in the system. Submitters largely agreed that even with more robust monitoring, MBIE needs to become more proactive about identified issues. Submitters emphasised that when MBIE makes a change to the system, such as amending the Building Code, it creates an opportunity to be proactive in its implementation – in particular, supplying guidance to steward everyone through changes.

Providing good information is crucial, but all 3 initiatives need to work in tandem

Across the 3 questions, 65 submissions said MBIE should focus on providing quality information, guidance, and education. Of these, 10 submitters specifically focused on information for building consent authorities, 8 submitters focused on information for the sector, and 4 submitters suggested better use of the Determinations process for improving information.

Overall, submitters were positive about the guidance MBIE has provided to date but considered MBIE can provide it more often and more effectively. Clear, accessible information helps participants understand processes and requirements, making expectations clearer. Submitters suggested that a lack of good guidance puts an undue burden on building consent authorities, creating risk and inconsistency. Submitters also made the link between better monitoring, collaboration, and guidance. Quick and accurate identification of issues via monitoring and collaboration would allow MBIE to address them effectively with targeted guidance.

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