In an effort to tackle longstanding bottlenecks in the building industry, the Government has announced a major reform: a new opt-in self-certification scheme for builders, plumbers, and drainlayers. The initiative, described by officials as a “smart, targeted reform,” aims to ease the country’s persistent housing challenges while maintaining construction standards.
Breaking Through Consent Bottlenecks
Currently, even simple, single-storey residential builds must navigate up to 12 separate inspections by Building Consent Authorities (BCAs) before completion—a process that often results in significant delays and cost overruns. According to Building and Construction Minister Chris Penk, wait times can stretch up to a week, costing about $400 for each day a project is delayed.
“At a time when many Kiwis are locked out of the housing market, that’s simply not good enough,” Penk said during the announcement in Waitoki. He stressed the urgent need to clear the backlogs in the consent system and make the building process faster and more affordable.
The new system draws inspiration from electricians and gasfitters, who have long operated under self-certification models with positive results. The Government hopes extending this flexibility to other trades will free BCAs to focus their resources on more complex, higher-risk projects.
Inside the Self-Certification Scheme
Under the proposal, approved firms and qualified individual professionals will be allowed to self-certify their work on “simple residential dwellings.” The definition of such dwellings will be determined through regulation following an industry consultation process.
Eligibility for the scheme is limited to reputable building companies and qualified tradespeople who meet strict competency, experience, and trustworthiness standards. Larger accredited companies, like volume home builders, will likely feature prominently among those eligible. Participants will be required to have proper insurance coverage and demonstrate ongoing quality assurance compliance.
Importantly, BCAs will still provide a nominal consent for projects under this scheme but will not be involved in detailed inspections, fundamentally shifting responsibility onto the builders themselves.
Certification, Insurance, and Accountability
Self-certifying builders and tradespeople will be required to maintain detailed documentation of their work and hold the necessary insurance to protect consumers. Quality assurance obligations will be monitored through random inspections and audits.
Chris Penk made clear that the scheme is designed with built-in safeguards: “And there will be standards, obviously, that they’ve got to continue to meet, they’ve got to have the right sorts of assurances and insurance in place as well – so they’ve got every incentive to get it right,” he told NewstalkZB.
Non-compliance will carry strict penalties, ensuring that accountability remains central to the new system.
Faster Inspections to Complement Self-Certification
Alongside self-certification, the Government has introduced mandatory inspection performance targets. From later this year, BCAs will be required to complete 80% of building inspections within three working days. MBIE will issue updated guidance to help BCAs meet the new targets, and quarterly performance data will be published to ensure transparency and public accountability.
This dual approach—empowering trusted builders to self-certify and pushing BCAs to operate more efficiently—is intended to synergise, accelerating the entire building process without sacrificing quality or public safety.
Reactions from Industry and Politicians
Industry bodies have largely welcomed the changes. Master Builders described the reform as a “long-overdue response” to an outdated inspection system, noting that delays have long plagued project timelines and client relationships. Ankit Sharma, CEO of Master Builders, said, “Trusted builders and tradespeople who consistently deliver high-quality homes shouldn’t face the same level of red tape as those who don’t.”
However, not all reactions were positive. Labour’s local government spokesperson, Tangi Utikere, raised concerns about potential risks, warning that the scheme could “open the door for cowboys.” He cautioned against repeating mistakes seen during the leaky homes crisis, emphasising the need for transparency, enforceable accountability, and strong independent checks.
“Trust in the building system depends on strong independent checks,” Utikere said. “We need to ensure construction cowboys don’t slip through the cracks.”
The Road to Implementation
The self-certification scheme is expected to be enabled through amendments to the Building Act 2004 and the Plumbers, Gasfitters and Drainlayers Act 2006. Legislation will be introduced by the end of 2025, after a thorough consultation phase where industry and public feedback will shape the final regulations.
While some details, such as the exact eligibility criteria and oversight mechanisms, are still being finalised, the Government remains confident that these changes will significantly streamline the building process.
In the long run, if implemented carefully, the new self-certification model could reshape and streamline the construction industry, making it faster and more affordable to build, while ensuring that quality and public safety remain firmly at the forefront.