New Zealand’s building and construction sector has broadly welcomed the Government’s overhaul of the building consent system, calling it a long-overdue step toward reducing costs, improving efficiency, and addressing persistent frustrations that have hindered growth for decades.
The reforms, announced last week, replace the existing joint and several liability framework with proportionate liability and allow councils to consolidate their Building Consent Authority (BCA) functions voluntarily. For builders, developers, and councils alike, the changes signal a potential shift toward a more predictable and consistent building environment.
For decades, joint and several liability left councils exposed when building defects occurred, even when the party responsible could not pay. Industry leaders have long argued that this system encouraged councils to act conservatively, slowing consents and inspections, and ultimately raising construction costs.
Property Council New Zealand Chief Executive Leonie Freeman said the shift to proportionate liability addresses a major pain point for councils and developers.
“Spreading accountability more fairly across the construction pipeline should ease pressure on councils and provide greater certainty for the market,” Freeman said. “Developers are prepared to take responsibility where appropriate, and this approach should reduce the risk-averse behaviour that has frustrated builders and homeowners for years.”
Freeman also highlighted the importance of supporting mechanisms, such as professional indemnity insurance and home warranties, to ensure clarity and protect building owners in the event of issues.
Another key reform—allowing councils to consolidate BCA functions voluntarily—has been welcomed as a way to reduce inefficiencies that have long plagued the sector. At present, 66 councils interpret the Building Code differently, meaning paperwork accepted in one district may be rejected in another. Builders often face delays and extra costs navigating this patchwork system.
“Consolidation allows councils to share resources, adopt best practices, and provide a more consistent experience for builders and homeowners,” Freeman said. “It has the potential to streamline processes, reduce duplication, and ensure that smaller or under-resourced councils can operate at the same professional standard as larger authorities.”
ACT Housing, Building and Construction spokesperson Cameron Luxton said the reforms reflected long-standing concerns from the sector.
“Tradies and builders have been railing for years against the delays and cost blowouts caused by an overexposed and inconsistent council system,” Luxton said. “Proportionate liability means each party is responsible for their own work, cutting the red tape that turns small projects into headaches. Consolidating BCAs will allow councils to adopt best practice from neighbours and provide a more professional, consistent level of service across the country.”
For many in the construction industry, the reforms are seen not only as a way to reduce costs but as an opportunity to modernise the system and support growth. “We finally have a chance to remove the bottlenecks that have been holding back building activity,” Luxton added.
Despite widespread support, industry leaders emphasised that the reforms’ success depends on careful implementation. Freeman said that how liability limits, insurance requirements, and regional BCA structures are managed will be critical.
“Removing structural barriers is only the first step,” she said. “The sector will be watching closely to see that these changes are translated into practical improvements on the ground.”
Some developers have already expressed cautious optimism, noting that the reforms could encourage more private sector investment in housing and commercial projects by reducing the risk
of unforeseen costs. “If councils are more confident in signing off consents, and builders can operate with clearer expectations, it could have a ripple effect across the housing market,” one industry observer said.
Overall, the industry response has been overwhelmingly positive, with many viewing the reforms as a signal that decades-old inefficiencies may finally be addressed. Builders, developers, and councils alike are hopeful that proportionate liability and BCA consolidation will create a system that is faster, fairer, and more predictable.
For homeowners and prospective buyers, the reforms could translate into lower costs, quicker consents, and fewer bureaucratic hurdles. At the same time, for the building sector, the changes offer an opportunity to operate with less red tape and a clearer allocation of responsibility.
“It’s a significant shift,” Freeman said. “If implemented well, these reforms could change the way New Zealand builds for generations to come.”
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