Following on from last year's round of consultation, the Government has recently introduced the proposed changes to the Building Act. The Building (Building Products and Methods, Modular Components and Other Matters) Amendment Bill has had its first reading in Parliament and has now been sent to the Environment Select Committee with submissions due by Friday 10 July 2020. The changes will be particularly important for building product suppliers and manufacturers and the key changes are summarised below.

Minimum Information Requirements for Building Products

The Bill introduces a new definition of "building products" and a mandatory requirement for the suppliers of these products to provide certain prescribed minimum information. The Government's hope is that better information on building products will assist designers and builders to choose the right the products, install them the way intended and also support faster consenting.

The Bill establishes a framework for the regulations to be prepared that will specify the information required and when the information must be disclosed. The information to be disclosed may include

(a) the manufacturer, supplier or other person connected with the supply;

(b) the installation, use, maintenance or disposal of the building product;

(c) any warnings or bans in place; and

(d) how information must be obtained and verified before it is disclosed.

This mandatory regime will replace the optional regime currently in place for Product Technical Statements. The Bill provides that a business must not supply a building product unless they comply with the building information requirements. Failing to provide the information is an offence which, in the case of a body corporate, may result in a fine not exceeding $30,000. This will be of particular interest to building product distributors who supply thousands of different building products. It is going to be a substantial exercise for these distributors to collate and provide this information to their customers.

Importantly, if the building information supplied is unsubstantiated, false or misleading, then the Bill also introduces new offences, which, in the case of a body corporate, may result in a fine not exceeding $600,000.

Specialist Framework for Modular Components

In recent times there has been a growing trend towards off-site manufacture. These "modern methods of construction" (MMC) processes use technology and assembly-line methodology to improve efficiency. However, manufacturers of MMC components and Building Consent Authorities have grappled with the consenting aspects of largely finished components being installed on site.

The Bill attempts to address consenting difficulties by establishing a voluntary scheme which enables modular component manufacturers, who can demonstrate strict quality and conformance of manufacturing processes, to be certified. Once certified, the modular component will be deemed to comply with the building code. A further benefit of being certified is that for cases where a building consent application relates to a whole building, if a single modular component represents the primary structure of the building, then the processing time for the building consent is reduced to 10 working days.

Product Certification Scheme

The Explanatory Notes to the Bill refer to the current lack of confidence in the CodeMark scheme. To address these concerns, the Bill aims to strengthen the scheme by providing greater oversight from MBIE of the product certification bodies and to maintain a register of the products certified.

Other Matters

The Bill lumps a number of other important changes under the heading "Other Matters", such as increased investigative powers for MBIE and a wider discretion for the use of the building levy. Builders should also note that the Bill clarifies their responsibilities with respect to the use of building products and, in some areas, increases the fines that may be imposed for offences under the Building Act.

If you would like to know more about the proposed changes or require assistance with making a submission then please get in touch.