Building reforms deliver clearer protections and put accountability where it belongs

Building surveyors are welcoming today's building reforms, saying the announcement provides practical consumer protections and finally align responsibility with those who design and build.

Building and Construction Minister Chris Penk confirmed the shift to proportionate liability, supported by mandatory home warranties, compulsory professional indemnity (PI) insurance for design professionals, and stronger LBP penalties.

NZ Institute of Building Surveyors President Darryl August says the measures correctly rebalance accountability across the system.

"Councils have become more and more risk‑averse. But proportionate liability shifts responsibility to those who actually design and build, and that pressure will lift quality," he says.

Under the reforms, mandatory warranties will apply to new homes up to three storeys and renovations over $100,000, covering one year for defects and ten years for structural issues.

August supports the move but stresses that durability matters. "Internationally, the strongest warranty schemes are insurance‑backed. Homeowners need real protection, not just a promise," he says.

He also welcomes mandatory PI insurance for architects and engineers.

"For NZIBS members, PI insurance is already standard. This won't increase costs for reputable professionals. Its purpose is to flush out the uninsured 'bad apples'," August says.

The Government will increase maximum LBP fines and extend suspension periods to 24 months.

August says penalties are necessary, but cannot stand alone. "Education and competence are the real levers. Without improvements to training and action on phoenixing, penalties won't fix systemic issues," he says.

"Defects will always occur, but independent building surveyors make the biggest difference when they're involved early. Front‑end construction observation prevents issues before they become claims," August says.

The reforms will only reach their full potential if they are paired with stronger training pathways, earlier oversight on‑site, and clearer standards for how warranty protections are delivered.

"These changes give us a better foundation, but real improvement comes from lifting competence and catching problems before they're built in.

"If we get that right, faster consenting, stronger protections and a high‑performing industry can absolutely coexist."