New building reforms could change how risk is shared

14 October 2026

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With submissions still open, a recent BusinessNZ and BRANZ briefing put proposed changes to liability, insurance, consenting and building research under closer industry scrutiny.

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Alice Thompson

The Building Amendment Bill was introduced in June, but its implications are becoming clearer as the building sector considers how the proposed changes would work in practice. At a BusinessNZ and BRANZ briefing on 29 September, specialists from law, insurance, building control and engineering examined the Bill’s potential effects on builders, designers, councils, insurers and homeowners.

One of the most significant proposals is the move from joint and several liability to proportionate liability. Rather than one party potentially carrying the cost of another party’s failure, each would generally be responsible for the share of loss attributed to them. Chapman Tripp partner Ed Scorgie described the change as one that would “fundamentally change the way we think about and allocate risk.”

The briefing also put the Bill’s consumer protections under scrutiny. The Bill would introduce mandatory home warranties for specified residential building work over $100,000, alongside professional indemnity insurance requirements for specified design professionals on projects of the same value. Questions were raised about whether there would be enough affordable warranty products, whether providers would have sufficient financial backing to meet claims over 10 years, and how professional indemnity insurance would protect homeowners in practice.

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Consenting is another area where the practical detail matters. The Bill proposes a 10-day pathway for qualifying solar and sustainable residential builds, as well as changes to building consent authorities and off-site construction. The briefing questioned whether 10 days would be sufficient for more complex projects and whether current practitioner and licensing requirements would provide enough assurance where greater reliance is placed on self-certification.

The proposed repeal of the Building Research Levy Act 1969 also attracted scrutiny. Under the Bill, responsibility for building research funding would move from the existing sector-led model to MBIE. Engineering New Zealand chief executive Richard Templer argued that the change could affect the independence of research, industry input into research priorities and the long-term capability needed to support New Zealand’s building system.

These questions give the current consultation greater significance. The Bill is still before the Transport and Infrastructure Select Committee, and public submissions remain open. The original 15 November submission deadline has been extended, likely until early in the next Parliament.

For architects, designers, builders and homeowners, this is an opportunity to consider how the proposed changes could affect the way projects are designed, consented, contracted and delivered. The Building Amendment Bill submission page provides the opportunity to have a say, while the full BusinessNZ and BRANZ briefing provides further detail on the questions raised by industry. New Zealand Parliament

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