The Government has announced what it is calling the most significant reform of the building consent system since the Building Act was introduced in 2004 — changes that Coromandel MP Scott Simpson says will be “great news for local builders and homeowners.”
Building and Construction Minister Chris Penk said the current system has become a major barrier to productivity, with sluggish consenting processes making it 50 percent more expensive to build a house in New Zealand than in Australia.
“New Zealand’s sluggish consenting system is delaying projects and driving up costs,” Penk said. “We must eliminate system blockages to speed up the delivery of new homes and infrastructure.”
The reforms will scrap the current “joint and several liability” framework, which often leaves councils and ultimately ratepayers covering the entire cost of building defects if other responsible parties cannot pay. It will be replaced with a “proportionate liability” model where each party is only responsible for their share of the work.
Penk said the change would have prevented cases like a 2015 Queenstown claim where ratepayers could have been left with a $160 million bill. The Government is also looking at new protections such as professional indemnity insurance and home warranty schemes, similar to those in Australia.
Another major shift will allow councils to voluntarily consolidate their Building Consent Authority (BCA) functions. With 66 BCAs nationwide, differences in interpretation of the Building Code often create delays, rejections, and extra costs. Consolidation would allow councils to pool inspectors and IT systems, reducing duplication and providing greater consistency.
Coromandel MP Scott Simpson welcomed the reforms in a social media post, calling them “great news for Coromandel builders and homeowners.”
“This is going to make building faster, cheaper, and easier,” Simpson said. “The changes scrap unfair liability rules that make ratepayers pay for other people’s mistakes, allow councils to work together, and create consistency across the country. It also means faster consents, lower costs, and fairer accountability where everyone pays their share.”
Chris Penk said the Government have the backing of industry leaders have also thrown their support behind the move, saying that the New Zealand Certified Builders Association described the reforms as the most significant change for the building industry in a generation.
Legislation to amend the Building Act will be introduced to Parliament in early 2026.
