National Multiple-Use Approvals Service
From 1 February 2010, the Department will be providing a National Multiple-Use Approvals (NMUAs) Service. This means that volume builders can apply to obtain NMUAs for building designs that will be replicated multiple times in any part of New Zealand. The benefit of NMUAs is that the Department can pre-approve building designs for compliance with the Building Code. This will reduce duplication and fast-track the consent process.
For more information about NMUAs, see the following questions:
This page will be updated as further information becomes available about the NMUA service, including how to apply.
Any questions or comments on the NMUA service?
Please email the National Multiple-Use Approvals project team on nmua@dbh.govt.nz
What are National Multiple-Use Approvals?
The Building Amendment Act (passed in July 2009) allows the Department of Building and Housing to issue National Multiple-Use Approvals (NMUAs). These will enable building designs that are to be replicated several times in any district, or regionally or nationally, to be ‘pre-approved’ for Building Code compliance.
The NMUA service aims to create time and cost savings to builders, through creating efficiencies between the new national approval process and the local consenting processes by Building Consent Authorities (BCAs). This is because standard designs for replication that have obtained the Department’s National Multiple-Use Approval will not need to be assessed by BCAs for Code compliance.
The BCAs’ role will be to check and inspect site conditions, foundations and utilities to each building (such as water and power). BCAs will also check that any specific conditions of the NMUA have been applied. The time needed for the local inspection should be significantly reduced, as a result.
The implementation of the NMUA service will provide time efficiencies and significant cost savings to industry. Volume builders can pass their savings on to consumers; and BCAs will have more time to process complex building plans.
The NMUA service is being developed in response to industry requests, and directly contributes to the Department’s strategic goals, to the Government’s priorities, and to current economic drivers.
What outcomes is the Government aiming to achieve?
The National Multiple-Use Approvals service needs to deliver certainty of BCA consenting, faster processing times at the local level, reduced duplication for volume builders, and lower costs.
The Department will be regularly evaluating service performance to ensure that customer satisfaction and streamlined services are occurring in the first instance; and that the service’s outcomes are achieved over time. We will be seeking user feedback on this as the service is implemented and matures.
What are the benefits of participating in the NMUA service?
The key benefits for volume builders participating in the serviceinclude:
- significant cost savings (dependent on the number of buildings replicated across a five-year period)
- quicker turn-around times for the local BCA consenting part of the process
- ability for builders to pass cost savings on to their customers, potentially giving them a market edge - especially in difficult economic times.
From its start-up, the NMUA service is expected to benefit group home builders, suppliers of kitset buildings or garages, and those builders involved in constructing the same buildings on a large scale (such as retirement villages).
The service will be expanded over time to include light commercial buildings, such as petrol stations and other structures.
A survey conducted by the Department in mid-2009 with 60 volume builders indicated that almost all of those builders contacted are interested in the NMUA service, and a large number of volume builders intend to make an application in the first year of the service. This reflects the industry’s support of this service.
Proposed scope of the NMUA service: what types of buildings will be eligible?
At the outset, the NMUA service will concentrate on the following building types:
- stand-alone garages
- sheds and other outbuildings
- simple houses of one or two storeys, including duplex houses (a duplex house is defined as two dwellings which share one internal wall).
From start-up (on 1 February 2010), the service will be available to group home builders, garage and shed franchisers, and retirement village builders - where such builders intend to build their standard designs several times.
In time, it is anticipated that the service would increase in scope to include light commercial buildings and other building structures.
Only entire buildings will be eligible – not building products or part-buildings. People wanting to have building products approved are referred to the Department’s Product Certification service, on http://www.dbh.govt.nz/blc-product-certification.
Who will be eligible to apply for a NMUA?
The Department wants to ensure that only genuine volume builders (see definition below) apply for National Multiple-Use Approvals, so that service resources are directed to where they will bring the most benefit. Where doubts exists about whether an applicant is a genuine volume builder, the Department may request evidence of the applicant’s record of achievement in the market, or, if the applicant is new in the market, evidence of their ability to replicate the intended design on a substantial scale (ie, at least 10 times in the immediate two-year period following the issuing of the approval).
There will be no ‘geographic boundary’ requirements or limitations on a NMUA. In other words, a design with a National Multiple-Use Approval can be built several times in one district, or nationwide.
Volume builders’ feedback on these proposals will be used to shape the future eligibility criteria of the NMUA service.
All information on any applicant will be kept strictly confidential within the Department.
Approved plans will be published securely on the internet for access by BCAs.
What is the Department’s definition of a ‘volume builder’?
The Department considers any of the following to be a volume builder:
- group home builders
- garage and shed franchisers
- suppliers of kitset buildings
- retirement village builders where such builders are involved in constructing their standard designs several times
- those who replicate a building design more than ten times in a two-year period.
What factors were taken into account when establishing NMUA fees?
The Department is committed to keeping fees to a minimum, in order to make the NMUA service attractive and viable for volume builders.
The Government requires schemes of this nature to be revenue-neutral (ie, they must recover their costs over a five year-period, but they must not make a profit).
Overall, the Department estimates the cost of a NMUA for a simple house of one or two storeys will be in the order of $5,500 to $9,000 (including GST).
The Department will be working with BCAs to ensure that services between NMUAs and BCAs are streamlined and efficient.
On this basis, the cost savings for replicated designs should be significant over time.
What is the proposed fee structure for NMUA applications?
The section immediately above outlines the rationale for the following fee structure.
Fees for processing NMUA assessments and approvals will be charged on an hourly basis, as this will most accurately reflect the actual costs to the Department. As a result, it is intended that the fees incurred by customers will be both transparent and fair, with no subsidisation occurring. Some designs will require specialist input, in addition to a regular technical assessment of design quality for Code compliance.
The use of specialists will depend on the complexity of submitted designs, and may be necessary in areas such as fire protection and accessibility, if these are relevant considerations.
The fee structure is as follows (incl GST):
- $96 per hour for Account Management services
- $146 per hour for the Assessor/s’ time (including peer review for quality assurance)
- $225 per hour for specialists’ costs.
Applicants will be asked to provide a deposit of $2,000 (including GST), which will include a non-refundable fee of $500 (including GST). This $2,000 deposit will cover initial processing and initial assessment costs and will be deducted from the final invoice amount once the full assessment has been completed.
All fees will need to be paid by the applicant before a NMUA certificate is issued. Should an application be declined, or if an applicant withdraws an application, then the Department will charge fees for all costs incurred up until that time.
How long is the Department able to take in issuing a NMUA?
When an application is received, the Account Manager will check it for completeness, and, if necessary, liaise with the customer until their application is completed and ‘ready to go’.
The Department will then have 40 working days to assess each design for Building Code compliance.
If issues arise resulting in the need for further information to be sought from the customer during this period, the 40-day assessment timeframe is suspended until the information is satisfactorily provided.
When the NMUA certificate has been issued (ie, a design and/or variations have been approved), the builder then applies to the local Building Consent Authority (BCA) for a building consent. The BCA will have 10 working days to issue the building consent, which will consist of checking the site conditions, foundations and utilities (such as water services), confirming that the proposed design meets the conditions of the National Multiple-Use Approval, and checking any planning requirements.
How much variation is allowed in each design?
When making an application it is important to include all of the intended design variations at the outset. The application should therefore include all of the Code compliant changes and modifications the builder is seeking to their standard design.
The Department will consider each of the variations at the same time as the initial design, and as part of the overall approval process for that design.
The Department is unable to approve variations that have not been included on an application form.
How can you register your interest in the service?
You are welcome to:
- Send an email to the Department’s NMUA mail box, which is cleared daily and responded to within 72 hours. The email address is nmua@dbh.govt.nz
In addition, volume builders can:
- Complete a simple on-line survey, which will enable you to register your interest in the service, so that information and updates can be sent directly to you; and to convey your comments directly to the Department on the proposed service design (scope, eligibility, numbers of designs to be replicated, customisation, etc). Details of this survey will be available by mid November 2009.
- If you are a member of the Registered Master Builders’ Federation or Certified Builders’ Association of New Zealand, you can contact these organisations who will channel comments to the Department, or may convene a meeting or teleconference between volume builders and the Department.
Officials from Building Consent Authorities are being invited to attend workshops on the National Multiple-Use Approvals service at their local cluster groups in late November/early December 2009. Invitations are being sent through cluster group contacts.
Published in October 2009