Product substitution guidance

The Ministry of Business, Innovation and Employment (MBIE) has recently re-published Product Substitution Guidance in light of supply chain issues facing the sector.

Relaunch of the Product Substitution Guidance

The international effects of COVID-19 has created supply chain disruptions affecting many countries around the world. In New Zealand, demand for residential construction is also at an all-time high. In the year to March 2021 New Zealand issued the most residential building consents in one year since the 1970s. Figures from October show this momentum has continued every month since, and the latest National Construction Pipeline Report shows this demand is expected to continue for some time.

What this means is in some cases, specified building products may need to be substituted to ensure that construction can continue using alternative available products. This can happen after a building consent is issued, and often, at a late stage in the building process.

MBIE has republished its product substitution guidance to reflect current materials, in order to provide practical assistance to designers, contractors and building owners, and to help building consent authorities and others who need to explain to clients what is involved in the substitution of products.

This will ensure appropriate building products are used in the right way so that projects impacted by material shortages can continue to be built in a safe and durable way without unnecessary delays.

In order to safely substitute a product or material, builders should:

• get in contact early with suppliers, especially if you are aware of current supply chain constraints • be upfront and engage with your designers and/or council early, to ensure that the correct process is followed • take the three-step approach outlined in our product substitution guidance. Step 1: consider the legal context, particularly any additional obligations you might incur from product substitution Step 2: consider the broader implications of using a different product to that specified, including whether it is fit for the same purpose and still meets the owner’s needs, and then

Step 3: implement any changes; for example, if substituting the product requires an amendment to a building consent.

Visit www. building.govt.nz website to read about the product substitution guidance and the threestep approach.

COVID-19 Construction Risk Management Guidance

The Construction Sector Accord recently published COVID-19 Construction Risk Management Guidance for construction clients to address supply chain related issues and material shortages resulting from COVID-19. The guidance encourages open and transparent dialogue between clients and their supply chain partners in managing and allocating risks, and being transparent in the sourcing phase to try and achieve the best outcome for the project.

Visit https://www.constructionaccord.nz/good-practice/ resource-hub/procurement-and-risk/ for more information.

Ministry of Business, Innovation and Employment. MBIE is the over-arching regulator of New Zealand’s building system. Our Building System Performance (BSP) branch provides policy and technical advice on New Zealand’s building system, rules and standards, and implements building legislation and regulations to meet New Zealand’s current and future needs.