What the Government has proposed, is to provide a regulatory framework that encompasses the building process from beginning to end; from the original consent process involving a city or district council, to the regulation of construction methods and the products used and the sign off at the finish of the project.
Arguably that will increase compliance costs, but offset it is said by an improved industry where builders and their clients can have a greater confidence in the enforcement of standards and quality of work, and - it is proposed - where the lines of responsibility are clearer.
As yet, we have little detail on the building dispute resolutions process, but the Bill should alleviate the current situation where disgruntled clients are unsure who to blame (or litigate against) when things go wrong. However, the Government proposals for reform focus on:
- Improved building controls and a more pro-active industry regulator.
- Improved administration of building controls.
- More competent and better informed building practitioners.
- Better informed and protected consumers.
Commerce Minister Leanne Dalziel has already announced that the Building Industry Authority (BIA) – criticised for its handling of the leaky building situation - will be abolished as a stand alone organisation in 2004 and become part of the Ministry of Economic Development. The Ministry is charged with being more pro-active, to better articulate and enforce the Building Code. It will be required to monitor and report on current and emerging trends in building design, techniques, practises, technologies and any other factors with implications for its maintenance of the Code.
We understand the Bill will also enable the issue of warnings, ban products and practises, and to require the use of "acceptable solutions". An acceptable solution is basically a "how to" guide to design and construction that should ensure compliance with the Code is followed.
There is also the ability to issue determinations on matters of dispute under the Code, the certification of building products and services, the accreditation of territorial authorities and private building certifiers and tighter conditions for building consents and Code Compliance Certificates.
We await the detail of the Bill with interest, as that will determine whether those in the building industry will be satisfied that the Government is on the right track.
Russell Ibbotson is the partner in charge of Preston Russell Law's environmental and resource management law team.
You can contact him by clicking here.
