Govt aims to put downward pressure on building prices

Builders are expected to gain access to tens of thousands of new products after passage of the Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill, which will remove barriers to overseas building products being used locally.

From July, a new building product specifications pathway will be introduced to streamline the process of citing international product standards that can be used with acceptable solutions or verification methods to establish compliance with the building code. 

Once regulations are developed later this year, the Minister for Building and Construction will be able to issue a notice that recognises groups of overseas product standards and certification schemes for use in New Zealand.

Building Consent Authorities will be forced to accept building products and methods that have been certified by an overseas product certification scheme and recognised by the Ministry of Business, Innovation & Employment, provided the products are used as intended.

Builders will be able to access “the best deals”

This reform is designed to improve competition in the construction sector and lower building costs, with Building and Construction Minister Chris Penk describing the status quo as unacceptable.

“Construction costs have risen a staggering 40% since 2019, spurred on by a lack of competition in the building system. Bringing hundreds of thousands of new options into the market will put downward pressure on prices,” he said.  

“Builders and designers have long called for this change, so they can get the best deals on goods and materials countries like Australia are already benefiting from. We expect that from July, more than 12,000 essential products – including plasterboard, cladding, and insulation – will be cleared for use through cited standards in the new Building Product Specifications pathway.”

Minister Penk said the more options builders had, the more resilient supply chains would become.

“Giving our tradespeople alternatives to turn to during product shortages will allow projects to continue without delays,” he said.

“Local manufacturers will also benefit from being able to test their products against internationally accepted standards, opening the door to valuable export markets. Work is already underway to establish robust regulations for recognising new products and standards, ensuring only top-quality materials enter the market.”