FROM NZCB —
Building industry performance and the need for an overhaul… Recently I attended a BRANZ meeting and I presented industry issues with the Building Research Advisory Council (BRAC). One of the leading questions discussed, “Is it the Builder on the ground or people in authority that have no stomach for change?” With plenty of discussion over the years and little achieved, the lack of performance by Building Consent Authorities (BCAs), has long been a thorn in the building industry’s side. Recent investigation completed by New Zealand Certified Builders (NZCB) over the COVID-19 lockdown period highlighted a vast difference between all BCA’s across New Zealand. For example, the simple process of booking site inspection times for residential projects vary from the next day, to 10-12 business days. Delays such as these have a huge impact on the building process and the efficiency and financial viability of a builder and sub-contractor operations. In these current times of economic uncertainty, our industry has a responsibility to keep the environment strong and to remove barriers that may cause a builder to fail. Especially if barriers are a result of bureaucracy and lack of understanding risk. One suggestion to help speed up the plan processing maybe to eliminate
unnecessary RFIs. e.g. requesting placement of a fridge or rubbish bin in a kitchen. There are undoubtedly many other examples like this. Experience has shown us that when addressing changes with BCA’s we must visit all sixty-four BCAs individually and this is not a feasible option. Some BCA’s are members of geographic or sizable cluster groups and only too often we hear of issues discussed at this level then dismissed when they are relayed to the relevant BCA. Unfortunately, it is not an option for local NZ Government to take a leadership role in these matters.
Performance of Builders As an industry we are often accused of very low productivity. Again, is this due to the builder, or the hoops they must jump through to be compliant with the Resource Management and Building Acts, Local Body and not to mention, Health and Safety regulations? With a 115% increase in the cost of building houses in the past 12 to 15 years, is it the rules and regulations that are the cause?
Construction industry operating profit by business size ($) 2011–18 financial years
Operating Profit ($ billion)
2 2011 2012 2013 2014 2015 2016 2017 2018
1
0
0
1-19 20-99 100+
Business Size by Number of Employees
SOURCE: Stats NZ
2
