The Government is considering stricter regulations for building professionals, aiming to enhance accountability and restore public confidence, according to Building and Construction Minister Chris Penk.

The proposed changes come in response to ongoing concerns about construction quality and the safety of residential projects nationwide.

Minister Penk outlined the Government's reform plans, which focus on tougher licensing and registration requirements and implementing new penalties for poor workmanship.

The goal, he said, is to make building faster and more affordable while also protecting consumers.

“The Government is taking action to make building easier and more affordable,” Penk said.

“To address our housing shortage, we need to rethink how we consent homes and remove barriers to imported building products. But, we must also hold tradespeople accountable when things go wrong.”

Key aspects of the proposed reforms include:

• Raising competency and accountability standards for builders
• Strengthening consumer protections in the Building Act
• Empowering regulators with enhanced licensing and disciplinary authority
• Introducing new fines for deceptive practices during remote inspections, including up to $50,000 for individuals and $150,000 for businesses

Penk emphasised that although most tradespeople are skilled and responsible, a minority have caused significant issues, undermining trust within the industry.

He noted that current penalties often fall short of deterring non-compliant behaviors, leading councils to adopt overly cautious practices to avoid costly liabilities.

“The trade-off for reducing oversight on low-risk projects, like granny flats, is that we ensure builders are both qualified and accountable,” Penk explained.

“This way, we can prevent councils from bearing undue risks when construction issues arise.”

The reforms align with recent moves to allow small structures, up to 60 square meters, to be built without a building consent.

This is part of the Government’s broader agenda to support housing growth while maintaining high standards of safety and quality.

“Lifting the competence of building professionals will also pave the way for insurance-backed opt-outs from consents, giving insurance companies the confidence to back new projects,” Penk added.

The proposed changes are intended to supplement the Government’s work on “phoenixing” prevention, where businesses evade their liabilities by shutting down and reopening under different names—a tactic that has plagued the building industry in recent years.

As consultations continue, these reforms are poised to help rebuild trust in the building sector, making it easier for Kiwis to invest in homes they can rely on.