Dodgy builders to be hit with tough new rules

Wednesday, 2 April 2025

The Government is introducing changes to help people more easily identify high-quality, trustworthy builders.

Builders will face much greater consequences for poor quality work under tough new rules being unveiled today by the Government.

Tales of shoddy work on newly built or remediated homes are commonplace, and concerns have been heightened by the Government’s plans to introduce self-certification for builders and remote inspections.

Critics have said those plans have the potential to open the system up to greater risk and more problems.

Now, the Government is set to announce changes to help people to more easily identify high-quality, trustworthy professionals to do building work.

Building and Construction Minister Chris Penk said most tradies were highly skilled and trustworthy, but there were high-profile examples of poor workmanship that were tarring the good with the bad.

Building and Construction Minister Chris Penk says the new rules aim to lift the standards of the building profession.

“I have also heard that Kiwis want assurance the Government’s work to streamline consent requirements won’t lead to a lack of quality or an increase in cut corners.”

He said New Zealand’s housing shortage meant the Government had embarked on a programme of building reforms to make it easier and cheaper to deliver new homes and infrastructure.

But proposals around builder self-certification were concerning people, and it was important that there were checks in the system to protect against shoddy work, he said.

“The changes being introduced today are intended to lift the standards of the building profession, and give more teeth to the current rules around it.”

There are four components to the changes, with the first being a strengthening of the disciplinary process run by the Licensed Building Practitioners (LBPs) Registrar.

While there is a disciplinary process, the registrar’s board is currently unable to initiate investigations and has to wait for an official complaint about a builder before it could embark on the process.

Penk said that will change, and the board will be given greater powers to take action when issues were identified, and work, including remedial work, was not up to speed. That could include cancelling or suspending the work.

The second change was about consumer protection, and making it easier for people to find out if a builder has been suspended, he said.

Decisions on LBPs are published, but currently people have to manually check decisions to see if a builders’ licence has been suspended for disciplinary reasons rather than because they did not renew it.

The Minister for Building and Construction announces new reforms to simplify New Zealand's building consent system. Aiming to reduce costs and delays, these changes address frustrations expressed by builders and aim for nationwide consistency.

Under the new rules, this will be changed to make it clear when a builder has been suspended because of disciplinary reasons.

Codes of Ethics for building practitioners, including licensed electrical workers, plumbers, gasfitters and drainlayers, will also be introduced to promote professional standards of behaviour.

The final change was the introduction of a new waterproofing licence class for LBPs to ensure those completing work in wet areas, such as bathrooms, are suitably qualified and accountable.

Penk said the new rules would help lock in accountability, and give people a clear path forward if things went wrong.

“We want builders and tradespeople to take pride in their work, and homeowners to have peace of mind about the quality of workmanship carried out.”

The new rules would give the small minority of bad operators the chance to shape up or ship out, he said.

“This is just the beginning. More reforms are on the way in coming months to crack down on cowboy builders, including increasing penalties for careless work.”

But the new rules were aimed at the lower end of the market, and intended to provide a baseline to mitigate against, the minister said.

The new rules strike the right balance, Master Builders’ Ankit Sharma says.

“If self-certification goes ahead those applying to self-certify will be required to meet a set of higher standards and requirements.”

He added that announcements on what self-certification would involve would be coming later this year.

Master Builders chief executive Ankit Sharma said it was important to ensure the right checks and balances were in place to lift quality across the sector.

The new rules announced today struck that balance, he said.

“These changes are designed to support the majority of builders who consistently operate at a high standard, while providing additional safeguards for consumers by targeting the small number whose poor practice undermines confidence in the system.

“We are strong advocates for a system where trusted builders are recognised and rewarded for their professionalism. These changes will lift expectations and standards across the board.”

Ultimately, the changes would allow trusted professionals to get on and build more quickly, more efficiently, and with strong consumer protections in place, he said.

The new rules will apply to work by licensed electrical workers, licensed building practitioners and plumbers, gasfitters and drainlayers, and are expected to come into force in 2026.