Source: ACT Party
ACT Building and Construction spokesperson Cameron Luxton is welcoming the Government’s announcement of a new opt-in scheme allowing trusted builders to sign off their own work and the setting of a mandatory target to slash building inspection wait times.
“New Zealand’s overreliance on councils in consenting and certification results in bottlenecks and delays,” says Mr Luxton, who is also a Licensed Building Practitioner.
“Those delays drive up the cost of getting almost anything built, fuelling higher housing costs and dragging down productivity across the economy.
“ACT has long argued we need to provide alternatives to costly council processes for building. Our coalition agreement commits to ‘explore allowing home builders to opt out of needing a building consent provided they have long-term insurance for the building work.’
“Today’s changes are a good start in getting council bureaucracies out of the way. But unless we fix the underlying incentive problems, councils will continue to grind construction to a halt.
“The fundamental incentive problem is that when building projects are botched, it’s councils, and therefore ratepayers, who shoulder the liability. It means councils only see risk whenever they look at a building project that doesn’t fit into their cookie-cutter understanding of building. Under this system it’s a wonder new designs get consented or certified at all.
“Expert builders should be allowed to shoulder the liability for their work, protected by insurance. That would free them to innovate and build faster, while giving clients the security of knowing that if something goes wrong, they’re protected.
“Crucially, to secure a good deal on the insurance market, builders would need to demonstrate a strong reputation for quality workmanship. Those with proven track records would be rewarded with better terms, while those unable to show consistent quality would face stricter requirements from insurers before being allowed to proceed.”
