New Consumer Protections for Building Work

10 July 2014 

Builders will be required to have written contracts, provide information on their relevant skills, experience and qualifications, and disclose their insurance and warranty cover from 1 January 2015 for residential building work valued at over $30,000 Building  and Construction Minister Nick Smith announced this month.

"We need to improve how building work is contracted in New Zealand to ensure better quality work, improved affordability and few disputes. We need to replace a 'she'll be right' with a 'doing it right' culture, with increased professionalism, open disclosure and clear expectations about what work is to be done and what timeframe," Dr Smith says. 

 "These new requirements come into effect 1 January 2015 and the industry needs to gear up for these significant changes. It is very encourage to see the huge growth in building activity to reach their highest rates in a decade, but it is in these buoyant times when the risks are greats for cutting corners and compromising quality. These requirements will reinforce the good practice of many building repairers while constraining cowboys only interested in making a quick buck".

"The new requirements were approved by Cabinet on Monday and were made under Part 4A of the Building Act amendments made in 2013. They apply to building work over a minimum price of $30,000. The new requirements are: a written contract (with specific clauses around warranties, dispute resolution, remedies); a checklist for consumers with tips on engaging builders and managing the project, and mandatory disclosure of information by building contractors (business information, key contacts and their role and qualifications, insurance cover held, warranties offered). 

Instant fines of $500 will be applied for failing to provided any of the above". 

"These important new consumer protections are part of a wider programme of improving New Zealand's building industry. In the wake of problems over leaky buildings and the Canterbury earthquakes, we have introduced proper occupational regulation with the Licensed Building Practitioner Scheme, improved construction contracts law with amendments before Parliament, and have further work in progress to improve New Zealand's system of standards".

"Our goal is an efficient building industry that is capable of delivering the quantity of quality and affordable homes that New Zealand needs," Dr Smith concluded. 

To see the original release click here. 


MoST Content Management V3.0.8839