BC Update: No.59 - Consultation paper issued on requirements for registration

1 May 2007: Consultation is under way on proposed standards and criteria for the registration of building consent authorities.

The Minister for Building and Construction, Hon. Clayton Cosgrove, described the release of the Department of Building and Housing consultation paper Building Consent Authority Registration Standards and Criteria Proposals on 20 April, as ‘another step forward in the reform of the building sector’.

Mr Cosgrove urged councils and other interest groups to comment on the paper. Submissions close on 18 May 2007. After submissions have been analysed and policy proposals have been amended and approved, regulations will be developed for implementation as soon as practicable in the 2007/08 fiscal year.

The accreditation process has already commenced. Accreditation is a prerequisite to registration.

Private organisations wanting to provide building control services can also seek accreditation and registration. Standards and criteria for their registration will be the same as those for local authorities, but more information will be required from private organisations to determine their suitability as building consent authorities.

The average cost of processing a registration application for a council has been estimated at around $250 (GST exclusive) – that is, $21,000 for all 85 councils. No registration fees are proposed for councils as the Department will absorb the costs of processing their applications.

The consultation paper proposes that private organisations pay a fee of $5570 (GST exclusive) to cover the significant costs that will be incurred by the Department in checking their compliance with registration requirements. The costs arise largely from additional consumer protection requirements for private organisations (imposed by the Building Act 2004) relating to ‘adequate means’ in terms of meeting civil liabilities that may arise from their building control functions. Assessment of adequate means will involve very detailed consideration of financial risks and will likely require input from a range of specialist advisors.

The consultation paper is available at http://www.dbh.govt.nz/pub-bca-accreditation or a hard copy can be obtained by phoning the Department’s Contact centre on 0800 242 243. Copies have been distributed to all councils and other interest groups.

The media release from the Minister issuing the consultation paper is available at  http://www.beehive.govt.nz/release/further+step+towards+reform+building+sector