Message from the NZCB Board

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

2

Operating Profit ($ billion) 1

2011 2012 2013 2014 2015 2016 2017 2018

0

0 1-19 20-99 100+

Or is it because we believe it is a two-year course to train builders, who can then commence building and become business owners? Are there too many good builders continuing to correct other builders work, instead of assisting with market requirements? And with all the photographs of so-called work completed by Licenced Building Practitioners (LBP) posted on social media should some of the LBPs have their licences revoked?

Is it time to improve training methods and practices, resulting in better builders which long term would mean less risk for BCAs and clients?

Problem solve now, to benefit the future generations of all New Zealanders Making building affordable in New Zealand is our goal for everyday New Zealanders and the building industry needs to take some leadership action now to make this happen. Unfortunately, small businesses are not considered when big decisions are made, yet they perform most of the work in New Zealand. The Statistics NZ survey on the previous page shows the amount of profit our small construction businesses make and they pay taxes on that profit. Small businesses work well with our New Zealand culture, and those with employee numbers under five make up approximately 90% of all businesses in the building industry. Often you hear “bigger is better”, but for most New Zealanders it’s not in our DNA.

Long term planning is critical, not only for our future development but also for the environment. We need to work with New Zealanders, taking into consideration their cultures and lifestyles and create systems which will benefit our growing population and lifestyles that are unique to us.

Whilst Government is well intentioned at times to orchestrate these ideals, momentum is often lost, people move on or directions can change altogether. With a specific Board engaged to focus on a long-term goal for the future and development of the building industry, facilitate change and to ensure this happens, this could well be the solution. The powers to be indicate that they are already doing this through the Construction Sector Accord, however it appears this is not the case. It is a fact, that they are not speaking to small building businesses who are executing the work at ground level.