Proposal for an owner builder exemption to the restricted building work regime: Appendices
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Appendix 1 - Glossary of terms
| Term |
Meaning/explanation |
| Act |
Building Act 2004 |
| Building Act 2004 |
A statute passed by Parliament in 2004 that reformed New Zealand's building control legislation following 'leaky homes' issues. Some of the new provisions in the Act that did not exist in New Zealand law previously are: registration of building consent authorities, product certification, licensing of building practitioners, restricted building work and implied warranties in all building work. A copy of the Act can be obtained from any Bennetts Government bookshop or online at www.legislation.govt.nz |
| Building Code/Code |
Regulations made under the Building Act 2004. The Code sets performance standards that all building work must comply with (whether it needs a building consent or not). The Code applies nationally across New Zealand. A copy of the current Code is in the Building Regulations 1992 and those regulations can be obtained from any Bennetts Government bookshop or online at www.legislation.govt.nz |
| Building consent/consent |
An authorisation required under the Building Act 2004 before any building work is carried out. The consent is issued by a building consent authority and describes how the building work will be done to ensure it complies with the Building Code. Certain building work is exempt from this requirement, mainly work that is very low risk (eg, general repairs and maintenance, decks less than 1 metre high and fences less than 2 metres high). |
| Building consent authority |
An organisation registered with the Department that has been independently accredited as having the necessary systems and processes to effectively carry out building consenting and related functions under the Building Act 2004. To date all registered building consent authorities are territorial and regional authorities. |
| Code compliance certificate |
A document issued by a building consent authority on completion of building work. The building consent authority will inspect the building work to determine whether it has been carried out in accordance with the building consent. If it has, it will issue a code compliance certificate that confirms the building work is Code compliant. |
| Department |
The Department of Building and Housing. The central government agency responsible for regulation and monitoring of the building and housing sector. |
| LBP |
A licensed building practitioner. A professional builder or designer who has had his or her competency independently assessed and is licensed under the Licensed Building Practitioner Scheme run by the Department. |
| LIM |
Land Information Memorandum. An information document issued by a territorial authority on request and payment of a fee. The LIM states all the information the territorial authority has on its files about the land the LIM relates to (eg, town planning zoning, contamination, water supply and natural hazards (such as earthquake fault line)). |
| Owner builder |
Also sometimes known as 'DIYer'. Basically a person who does building work on their own home or other property they own (eg, holiday home, bach). |
| Term |
Meaning/explanation |
| Restricted building work |
Is defined in the Building Act 2004 as follows:“restricted building work—(a) means building work that is— (i) critical to the integrity of a building, for example, its envelope and structure; and (ii) of a kind declared by the Governor-General by Order in Council to be building work that must be carried out or supervised by a licensed building practitioner who is licensed to carry out or supervise that work; and that Order in Council may relate, without limitation, to certain types or categories of buildings, or parts of buildings specified in the Order in Council; and(b) includes design work (relating to building work) that is design work of a kind declared by the Governor- General by Order in Council to be restricted building work for the purposes of this Act; and(c) does not include any building work for which, in accordance with section 41, a building consent is not required.” |
| Territorial authority |
A local council. Territorial authorities have record keeping and enforcement functions and powers under the Building Act 2004. |
Appendix 2 - Alternative options
Below are two alternative ways restricted building work done by owner builders can be dealt with separately from work done by licensed building practitioners. If you think one of these alternatives is better than the proposals on pages 4-7 of this document, please let us know.
Alternative 1 - risk based threshold
This option focuses on the complexity of the building work being done. The exemption would apply to building work considered to be of such low risk that it should not be restricted building work. Such building work would be able to be carried out by anyone, whether they are an owner builder or another unlicensed person. The description of the 'exempt' work would be included in the Order in Council defining restricted building work. Under this option, for example, a one or two storey timber-framed house of simple design, limited size and traditional cladding could be built from scratch by any unlicensed person.
Alternative 2 - registration system
Under this option a centralised/national owner builder registration system would be established. Any person wanting to do work as an owner builder would have to be registered as such. Registered owner builders would be able to carry out restricted building work. Most of the Australian states run such registration systems and the New Zealand system would be modelled on them. It would require owner builders to demonstrate an appropriate level of competency to do building work and also require them to pay a fee in order to be registered.
Appendix 3 - Restricted building work provisions
Below are the relevant sections of the Act dealing with the restricted building work regime.
All restricted building work must be carried out or supervised by a licensed building practitioner who is licensed to carry out or supervise the work.
(1) A person who is not a licensed building practitioner commits an offence if he or she carries out restricted building work while not supervised by a licensed building practitioner who is licensed to carry out or supervise the carrying out of restricted building work of that kind.
(1A) A licensed building practitioner commits an offence if he or she—
(a) carries out restricted building work of a kind that he or she is not licensed to carry out or supervise the carrying out of; or
(b) supervises the carrying out of restricted building work of a kind that he or she is not licensed to carry out or supervise the carrying out of.
(2) A person who commits an offence under this section is liable to a fine not exceeding $20,000.
(1) A person commits an offence if the person—
(a) engages another person to carry out or supervise restricted building work; and
(b) knows that the other person is not—
(i) a licensed building practitioner; or
(ii) a licensed building practitioner who is licensed to carry out or supervise the restricted building work.
(2) A person who commits an offence under this section is liable to a fine not exceeding $20,000.
Appendix 4 - Implied warranties
The wording below is an exact copy of section 397 of the Act. Section 397 sets out warranties that are implied into every contract for carrying out building work on a household unit (ie, house, townhouse, apartment).
That the building work will be carried out—
(i) in a proper and competent manner; and
(ii) in accordance with the plans and specifications set out in the contract; and
(iii) in accordance with the relevant building consent.
(i) will be suitable for the purpose for which they will be used; and
(ii) unless otherwise stated in the contract, will be new.
That the building work will be carried out in accordance with, and will comply with, all laws and legal requirements, including, without limitation, this Act and the regulations.
That the building work will—
(i) be carried out with reasonable care and skill; and
(ii) be completed by the date (or within the period) specified in the contract or, if no date or period is so specified, within a reasonable time.
That the household unit, if it is to be occupied on completion of building work, will be suitable for occupation on completion of that building work.
If the contract states the particular purpose for which the building work is required, or the result that the owner wishes the building work to achieve, so as to show that the owner relies on the skill and judgement of the other party to the contract, that the building work and any materials used in carrying out the building work will—
(i) be reasonably fit for that purpose; or
(ii) be of such a nature and quality that they might reasonably be expected to achieve that result.