Building consent system review: options paper consultation (2023)

The Ministry of Business, Innovation and Employment (MBIE) recently sought feedback on options to improve the building consent system.

The consultation took place between June and August 2023.

Building consent system review history

A review of the building consent system is underway. The review aims to modernise the building consent system by providing assurance to building owners and users that building work will be done right the first time, and that buildings are healthy, safe and durable. The review is an end-to-end review of the building consent system – from the building design phase through to the issuing of a code compliance certificate.

Addressing issues with the building consent system to enable timely processing of consents and speed up the supply of housing and other buildings is more important now than ever.

The Building Consent System Review is a key milestone in the response to the Commerce Commission’s market study into building supplies. The review responds to two of the recommendations: to promote competition as an objective of the building regulatory system and to remove impediments to product substitution and variations.

In 2022, MBIE commenced stage one of a Building Consent System Review by releasing the Building Consent System Review Issues Discussion document and conducting a public consultation seeking feedback on its contents.

The consultation focussed on the full building consent system process, from the building design phase through to issuing a code compliance certificate. The summary of submissions for the review was published on the MBIE website in December 2022.

Overall feedback indicated broad agreement that the system is not fundamentally broken but there are opportunities for substantial improvement. This aligns with the Government’s intention to address long standing issues within the consenting process.

• Key issues identified from the feedback to the Issues Discussion Document included:
• Roles and responsibilities in the building consent system are not well understood
• Building consent authorities hold too much responsibility
• The consent process is not sufficiently agile
• Inconsistent requirements, processes, systems and interpretations creates confusion, frustration and uncertainty for owners, designers and builders
• Capacity and capability constraints are affecting performance and building outcomes
• System monitoring is too focused on detailed auditing rather than monitoring outcomes
• The system is also not sufficiently responsive to Māori needs.

Building consent system review: options paper consultation

In response to the submissions received for the Issues Discussion Document, MBIE commenced stage 2 of a Building Consent System Review by releasing the Building Consent System Review: Options Paper document in June 2023 and conducting a public consultation seeking feedback on possible options for addressing the issues identified in the first consultation and improving the building consent system.

The Options Paper sought feedback on options to improve consistency of decision-making, support better delivery of building consent services and alleviate capability and capacity constraints.

The aim of the consultation was to inform and refine options to improve and streamline the building consent system. It intended to encourage in-depth feedback from the public and building sector to develop a broad understanding of how these options could address current issues with the building consent system, potential risks to be mitigated and obtain any additional options that may not have been considered.

The potential reform options addressed some of the recommendations made by the Commerce Commission in its market study on competition for residential building supplies.

The Government's final policy position statement ‘Risk, Liability and Insurance in the Building Sector’ was also released. This informs the public of the history of these settings and why they remain appropriate at this time. 

We are taking a whole-of-system perspective to risk and liability in the building sector, examining all elements of the building control system, with the aim of getting building work ‘right first time,’ ensuring the inputs into building process are high quality, rather than focusing on liability and culpability when things go wrong.

Summary of Submissions

Public consultation on the Building Consent System Review: Options Paper took place between June and August 2023. A total of 270 submissions were received from a wide range of participants across the sector, including building consent authorities, building control officers, industry organisations, builders, engineers, architects, tradespeople, businesses, developers and homeowners.

There was strong support for non-regulatory approaches to promote and give prominence to competition in the building regulatory system, but less keenness for legislative change.

Feedback provided strong support for removing barriers to product substitution and variation, but also reiterated the importance of the need to carefully consider the performance of a product when substituting.

It was generally agreed that the roles and responsibilities of participants in the building sector need to be strengthened and made clearer, particularly for designers.

There was strong support for clarifying the role and legal status of producer statements.

There is broad, in-principle support to establish a self-certification pathway for approved professionals and accredited companies, as well as establishing a new commercial consent pathway. However, concerns were raised about the readiness of the sector to take on the additional responsibilities and accountabilities.

There is general agreement that the performance of the building consent system could be improved and made more efficient and streamlined through nationally consistent processes and requirements, and through centralised training for building control officers.

Feedback strongly supported boosting capability and capacity across the building consent system through more coordination and joined-up service delivery, including through shared workflows or service arrangements, and a centralised resource of expertise.

Submitters broadly agreed that MBIE needs to improve its oversight and stewardship functions, driving performance improvements of the regulatory system through more collaboration, better monitoring and being more responsiveness to issues and risks.

Submitters have mixed views on whether Māori in the sector face additional barriers across the wider building process, and whether the building consent system needs to be more responsive to Māori in terms of capacity, capability, and relationship issues.

MBIE will use the feedback received to provide advice to the Government on streamlining the consenting system and improving the building system as a whole.