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Friday, November 8, 2024

David Farrar: Cutting construction costs


Chris Penk announced:

The Government is proposing further significant action to reform the building and construction sector to support more affordable homes and a stronger economy, Building and Construction Minister Chris Penk says.

“If we want to grow the economy, lift incomes, create jobs and build more affordable, quality homes we need a construction sector that is firing on all cylinders,” Mr Penk says.

“That is why the next action in our reforms of the sector is to construct a new self-certification scheme for trusted building professionals and accredited businesses carrying out low risk building work.

“The building consent system is intended to protect homeowners from defective building work by requiring work to be inspected and consented by a Building Consent Authority. But the regime is inefficient and adds cost and time to the build process, which makes it harder for Kiwis to realise their dream of homeownership.

“It takes on average 569 days for a home be built and consented – amid a housing shortage, that is simply too long to wait.

“Today we are announcing plans to develop a new opt-in self-certification scheme for trusted building professionals and accredited businesses. The scheme, which will go through a robust consultation process, features two key pillars.

“The first is that qualified building professionals, such as plumbers, drainlayers and builders, will be able to self-certify their own work, for low-risk builds, without the need for an inspection. This brings them in line with electricians and gasfitters who can already do this and is something the industry has been calling for, for years.

“The second pillar is that businesses with a proven track-record – for example, group homebuilders who build hundreds of near identical homes a year – will be able to go through a more streamlined consent process.

“At the moment, a single-story basic home might go through 10 or more separate inspections. This is clearly too many and the cost-benefit has become unbalanced.

These sound like pragmatic changes which should make a difference to the ever increasing time and cost of construction. I note even Labour have said they are supportive, which is great.

David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.

2 comments:

Robert arthur said...

Most citizens od enough to rember the leaky buidings saga are terrified. The failure rate of Council imspections is horrendous; far worse than 25%.no private outfit will be that strict. It can take 50 and more yeras for many defects to show. Only councls last that long so have to be cautious.

Anonymous said...

This has been tried before, and has someone has already commented, led to the leaky building crisis. It particularly becomes a problem when new technology arrives, as happened then, that the people certifying didn't fully understand.

Another industry with self regulation is the media, and its clear how thar works. The bias of the MSM is reflected in the way complaints are handled, which is against the public interest.