Building Amendment Bill

Building Amendment Bill EXPLANATORY NOTE GENERAL POLICY STATEMENT The Building Amendment Bill (the Bill ) amends the Building Act 2004 (the Act ) and consequentially amends other legislation to address inefficiencies in the building system that increase costs, delay delivery, and constrain performance, including through the clearer allocation of roles, responsibilities, and risk. Building in New Zealand has become increasingly complex, slow, and costly. Long-standing regulatory settings—including liability arrangements and the design and operation of the building consent authority ( BCA ) framework—have contributed to risk-averse behaviour, higher costs, and delays in delivering building work. The Bill addresses these issues and makes targeted changes that remove unnecessary barriers and support more efficient and sustainable building pathways. Currently, liability in New Zealand’s building and construction sector operates under a joint and several model, developed through a combination of common law and statute. Joint and several liability allows claimants to recover the full cost of defective building work from any one liable party, regardless of that party’s relative contribution to the defect. In practice, this has placed a disproportionate burden on more solvent and accessible parties, particularly councils, even if their contribution to the defect was minor. This has reduced accountability for other participants and contributed to risk-averse behaviour, which has increased costs and delays in delivering building work. The Bill addresses those issues by establishing proportionate liability as the applicable regime if multiple parties contribute to defective building project work and a claim is pursued through litigation, adjudication, or arbitration. Proportionate liability means that each person will be responsible for the share of loss corresponding to their contribution, but only for their share of the loss. Proportionate liability will apply to building project work for which a building consent was issued on or after the first anniversary of Royal assent. For building project work that is exempt from requiring a building consent under Schedule 1 of the Act, proportionate liability will apply to building project work that is started on or after the first anniversary of Royal assent. As building consent information is publicly available through territorial authorities, this approach provides clarity for which liability system applies to a claim once proportionate liability comes into force. Current contracting practices can continue for all non-residential buildings and buildings over 10 metres. For smaller residential builds, excluding or limiting liability relating to defective building project work will be prohibited. This approach preserves freedom of contract arrangements and minimises disruption to commercial and high-rise construction where parties are commercially sophisticated and able to price and manage risk, while adding protections for residential homeowners and preventing excessive under-recovery. The change is intended to strengthen accountability across the sector, better align responsibility with risk, and reduce incentives for defensive practices that add cost and delay to building projects. The focus of proportionate liability is the liability of the defendant and not the recovery of the plaintiff. To manage the potential impact of proportionate liability on claimants who can no longer seek full recovery if a liable party is absent or insolvent, the Bill introduces complementary measures to protect consumers and maintain confidence in the building system. Those measures reduce the risk of uncompensated loss for homeowners, while reinforcing accountability across the building and construction sector. They include— mandatory residential home warranties for residential building work with a total value of $100,000 or more, if the work includes restricted building work and requires a building consent, that provide minimum coverage of at least 1 year for building work that is defective and 10 years for structural defects; and mandatory professional indemnity insurance for design professionals (such as architects, designers, engineers, and surveyors) who contribute, through advice or other services, to the design or compliance of building work. The Bill establishes a registration regime under which the chief executive of the Ministry of Business, Innovation, and Employment ( MBIE ) may register home warranty contract providers. The Bill enables new regulations specifying the criteria to be met and evidence required for provider registration. To support effective consumer protection, the Bill introduces new offences for non-compliance with home warranty and professional indemnity insurance requirements, with penalties aligned with comparable offences under the Act. The Bill also includes a power for the Governor-General (on the recommendation of the Minister for Building and Construction) to temporarily disapply some or all home warranty and professional indemnity insurance requirements. This power is limited to circumstances where there is, or is likely to be, a material impact on the availability or affordability of these products (for example, due to major market disruption or insurer withdrawal), and a resulting risk to building sector continuity or housing delivery. Any disapplication should not be broader than reasonably necessary in the circumstances, may be imposed at any time for up to 2 years, and may be extended or revoked, with each extension limited to a further maximum period of 2 years. When the Act was enacted, it was anticipated that smaller BCAs would consolidate over time to achieve scale, resilience, and consistency. In practice, consolidation has been limited, in part due to legislative requirements and complex transfer arrangements. The Bill simplifies that legislative framework to enable greater flexibility in how BCA functions are delivered. In particular, the Bill— removes the requirement for a territorial authority (a TA ) to be a BCA, or to maintain BCA accreditation, if it transfers its consenting functions to another BCA; and removes restrictions that prevent TAs from transferring BCA functions to a non-TA entity, such as a stand-alone BCA, council-controlled organisation, or private BCA; and allows certain consent-related functions to be delegated from a TA to a stand-alone BCA that is a council-controlled organisation. The Bill sets out procedural requirements for both the transferring TA and the receiving BCA to support continuity and reliability of consenting services during and after a transfer. Those changes enable voluntary consolidation and collaboration across the BCA system, without requiring BCAs to change how they currently operate. Building research is currently funded through a bespoke levy regime under the Building Research Levy Act 1969, which exists separately from the levy that funds building regulatory functions. This legislation has not been substantively reviewed since its enactment. This has resulted in duplicated levy collection processes and limited oversight and transparency over the allocation and use of funding. The Bill repeals the Building Research Levy Act 1969 and provides for building research and related scientific work to be funded through the building levy under the Act as part of the functions of the chief executive of MBIE. The Bill enables building research funding to be awarded through transparent processes overseen by MBIE, including the use of a contestable funding mechanism and associated decision-making arrangements provided for in legislation. Integrating building research funding within the broader levy-funded regulatory framework supports a more coherent approach to funding and a more strategic allocation of resources across the building sector. New Zealand households are expected to use more electricity as homes and transport become increasingly electrified. Increasing the uptake of solar electricity generation and sustainable design in residential buildings can improve energy security and reduce long-term energy costs for households. However, uptake of residential solar energy in New Zealand remains low and is growing more slowly than in comparable jurisdictions. Around 40% of households in Australia have solar panels. In New Zealand uptake is around 4%, with around 10,000 installations each year. The Bill aims to increase voluntary uptake of solar electricity generation and sustainable residential buildings by providing a faster building consenting process. It provides for a fast-track building consent pathway for residential buildings of up to 3 storeys that meet specified performance criteria for solar electricity generation and sustainability. Building consent authorities must process these applications within 10 working days, compared with the existing standard of 20 working days. The Bill also enables the chief executive of MBIE to set performance criteria for solar electricity generation and sustainability by notice. Applicants must meet those criteria and provide supporting information to demonstrate compliance to access the fast track. Sustainable residential buildings include buildings with 1 or more of the following attributes: energy efficiency, low embodied carbon, water efficiency, and climate resilience. The fast track supports the Government’s energy, climate, and cost of living priorities. The Bill amends how the building consent exemption for small stand-alone dwellings under the Act applies if off-site construction is involved. The exemption was introduced through amendments to the Act in October 2025 and allows small stand-alone dwellings under 70 m2 to be constructed without a building consent, subject to specified conditions, including the requirement to obtain a project information memorandum (a PIM ) before construction begins. Some off-site construction models present practical challenges under this framework, especially if companies build homes as stock, or if homeowners prefer to inspect a home constructed off-site before purchasing it. The Bill permits off-site construction of small stand-alone dwellings before a PIM is obtained, while requiring a PIM to be obtained before any on-site building work takes place. The Bill also clarifies that homes cannot be occupied until building work is complete. This change supports faster and more efficient delivery of small stand-alone dwellings, while enabling greater use of off-site construction methods that are typically quicker to build and can reduce construction waste. Existing exemption conditions continue to apply to off-site building work, including the requirement for authorised building professionals to do the work, that records of work be produced, and that the building work meets the conditions set out in Schedule 1A of the Act (where this can be done off-site). DEPARTMENTAL DISCLOSURE STATEMENT The Ministry of Business, Innovation, and Employment is required to prepare a disclosure statement to assist with the scrutiny of this Bill. The disclosure statement provides access to information about the policy development of the Bill and identifies any significant or unusual legislative features of the Bill. A copy of the statement can be found at http://legislation.govt.nz/disclosure.aspx?type=bill&subtype=government&year=2026&no=332 REGULATORY IMPACT STATEMENTS The Ministry of Business, Innovation, and Employment produced regulatory impact statements in July 2025, September 2025, and October 2025 to help inform the main policy decisions taken by the Government relating to the contents of this Bill. Copies of these regulatory impact statements can be found at— https://www.mbie.govt.nz/dmsdocument/31263-regulatory-impact-statement-building-consent-authority-barriers-to-consolidation-proactiverelease-pdf https://www.mbie.govt.nz/dmsdocument/31262-regulatory-impact-statement-shift-to-proportionate-liability-for-building-and-construction-proactiverelease-pdf https://www.mbie.govt.nz/dmsdocument/31701-regulatory-impact-statement-supporting-mechanisms-for-proportionate-liability-in-the-building-and-construction-sector-proactiverelease-pdf https://www.mbie.govt.nz/dmsdocument/31081-updated-regulatory-impact-statement-incentivising-solar-generation https://www.mbie.govt.nz/dmsdocument/31709-regulatory-impact-statement-reforming-the-building-research-funding-system-proactiverelease-pdf https://www.regulation.govt.nz/our-work/regulatory-impact-statements/ CLAUSE BY CLAUSE ANALYSIS Clause 1 is the Title clause. Clause 2 provides for the commencement of the Bill. In summary, the amendments relating to— building consent authorities, sustainable buildings, and solar buildings come into force on the day after Royal assent: off-site constructed small stand-alone dwellings come into force 1 month after Royal assent: the registration of home warranty providers come into force 3 months after Royal assent: levies come into force on 1 April 2027: proportionate liability, professional indemnity insurance, and home warranties come into force on the first anniversary of Royal assent. AMENDMENTS TO BUILDING ACT 2004 Clause 3 provides that Part 1 amends the Building Act 2004 (the principal Act ). Clause 4 amends section 7 in 2 main ways. First, it replaces the existing definitions of final design plans, non-consented small stand-alone dwelling, and preliminary design plans with updated definitions that expressly deal with the fact that some small stand-alone dwellings may be off-site constructed dwellings, which are transported to the final site, or other dwellings that are constructed at the final site. Second, the Bill inserts new definitions of final site, off-site constructed dwelling, and off-site dwelling constructor to enable the regulation of both types of dwellings. Clause 4 also adds definitions of building research component, contestable research fund, council-controlled organisation, general component, solar electricity-generating building, and sustainable building. Clause 5 amends section 11, which sets out the role of the chief executive of the Ministry of Business, Innovation, and Employment (the chief executive ). The amendment adds new paragraph (caa) , which states that the chief executive commissions, promotes, and funds building research. Clause 6 amends section 12, which relates to the role of building consent authorities ( BCAs ) and territorial authorities. The amendments provide— for the role of BCAs relating to home warranties under new subpart 2C of Part 5 ; and that a function of a territorial authority to perform a function of a BCA does not apply to a function transferred under new section 233 . Clause 7 makes a key change. At present, no building may begin on a non-consented small stand-alone dwelling before a project information memorandum ( PIM ) has been issued by the relevant territorial authority in relation to its final site. The change made by this clause will limit the operation of that restriction to building on the final site of the non-consented small stand-alone dwelling. In other words, it will now be lawful to construct a dwelling off-site before the requirement for a PIM to be issued comes into effect. Clause 8 replaces section 33(1A). The change requires an application for a PIM to include a description of the proposed building work, including the details of any off-site constructed dwelling that has already been constructed or is yet to be constructed. The application must also include preliminary design plans for the building work, including the preliminary design plans for any off-site constructed dwelling that has been constructed or is yet to be constructed. Clause 9 replaces section 34(1), which relates to the time frame within which a PIM must be issued. The new subsection removes the special rule for non-consented small stand-alone dwellings. Instead, in each case, the territorial authority must issue the memorandum within 10 working days after receiving an application under section 31(1)(a) or 32. Clauses 9 and 11 make consequential changes to sections 34(5) and 35A(2)(b). Clause 10 amends section 35 to require a PIM to include a certificate issued under new section 393Y (if any) and, if the certificate is cancelled, a statement to that effect. Clause 12 makes 3 main changes to section 42B. First, new section 42B(3)(f) prohibits the occupation of a non-consented small stand-alone dwelling until the building work at the final site is complete. Second, under new section 42B(3)(g) , a certificate of work must be issued for the design work in the design plans for an off-site constructed dwelling before any building work can begin on that dwelling off-site. Third, new section 42B(6A) requires an off-site dwelling constructor, before the off-site constructed dwelling is transported to the final site for the non-consented dwelling, to provide a range of building records to the owner of the final site. New section 42B(6B) makes separate provision for the supply of records if an off-site constructed dwelling is sold to a reseller before it is resold to the owner of the final site. Clause 13 amends section 45 to require an application for a building consent to be accompanied by a copy of a home warranty if a home warranty is in effect under new subpart 2C of Part 5 . Clause 14 amends section 45AA to require final design plans that relate to building work for an off-site constructed dwelling to be accompanied by a certificate of work for the dwelling and a certificate of work for the installation of the dwelling on the final site. Clause 15 inserts new section 47A . That section provides the criteria that a building must satisfy in order to be treated as a solar electricity-generating building or a sustainable building. If a building is a solar electricity-generating building or a sustainable building, a building consent authority is required to consider any building consent application in relation to the whole building within a shortened time frame under section 48. The criteria that need to be satisfied for a building to be treated as a solar electricity-generating building or a sustainable building require the building to be a residential building of 1 or more household units and meet specified building performance criteria. Also, the building cannot be more than 3 storeys tall or contain a specified system. The new section also provides for the setting of performance criteria, and requires the production of supporting documents demonstrating compliance with those criteria to the chief executive. Clause 16 amends section 48. The clause requires building consent applications relating to a solar electricity-generating building or sustainable building to be processed by the building consent authority in 10 working days, provided that the application is accompanied by supporting documents in accordance with new section 47A . Clause 17 amends section 51 to require a building consent to have attached to it— any certificate issued by a BCA under new section 393Y . That certificate may prevent building work from being carried out if the authority has insufficient evidence that a home warranty under new subpart 2C of Part 5 is in effect ( see clause 46 ); and any home warranty that is in effect under new subpart 2C of Part 5 . Clause 18 amends section 53, which establishes the levy payable when a building consent is granted. The amendment turns the levy into a 2-part levy. The 2 parts are the existing levy, now called the general component, that funds the chief executive’s functions under the Act and any other Act that relates to the building sector, and a new building research component that funds the chief executive’s new role under new section 11(caa) of commissioning, promoting, and funding building research. Clause 19 amends section 88 to require licensed building practitioners who carry out or supervise work on off-site constructed dwellings to provide a record of that work to the off-site dwelling constructor. Clause 20 consequentially amends section 96 to refer to an off-site dwelling constructor. Clause 21 inserts new sections 175AB to 175AG , which relate to building research and the use of the building research component of the levy. In summary,— new section 175AB sets out the purposes for which the building research component can be used: new section 175AC requires the chief executive to develop and maintain a long-term research strategy for the use of the building research component of the levy: new section 175AD requires the chief executive to periodically set aside a portion of the building research component as a contestable fund from which any person can apply for funding to conduct building research: new section 175AE requires the chief executive to establish an investment advisory panel made up of persons with expertise in building, research, government, and other relevant sectors: new section 175AF sets out the functions of the investment advisory panel, which are to assess applications for funding from a contestable fund, to provide advice to the chief executive about applications, and to make recommendations: new section 175AG sets out how the chief executive must make decisions about the allocation of a contestable fund. Clause 22 amends section 177 to allow a party to apply to the chief executive of the Ministry of Business, Innovation, and Employment for a determination in relation to a BCA’s power of decision under new sections 393Y to 393ZB (which relate to home warranties). See clause 46 . Clause 23 makes a related change to section 183 to ensure that the BCA’s decision is not suspended until the determination is made. Clause 24 amends section 193 to provide that the effect of registration as a BCA includes performing functions under new subpart 2C of Part 5 . Clause 25 amends section 196, which relates to the registration of BCAs. New subsection (3) applies if a stand-alone BCA notifies the chief executive that it is considering agreeing to a transfer under new section 233 ( see new section 234A , inserted by clause 31 ). In this case, the chief executive must assess whether, if the transfer proceeds, the BCA would continue to meet the criteria for registration. Clause 26 amends section 212, which relates to a territorial authority’s duty to act as a BCA for its district. That duty does not apply to a function transferred under new section 233 as long as the territorial authority remains satisfied (on reasonable grounds) that the transferee remains able to perform the function. One consequence of this amendment is that if all of its BCA functions are transferred, a territorial authority does not need to register as a BCA under new section 215(b) . Clause 27 replaces section 215, which requires a territorial authority to gain accreditation and be registered as a BCA. New section 215 now refers to the duty in relation to each function under section 212(1) (in recognition of the ability of a territorial authority to transfer 1 or more of those functions under new section 233 ). Clauses 28 and 37 amend sections 219 and 240 to clarify that a failure by a person to pay a fee, charge, or levy does not affect the duty of a building consent authority under new sections 393Y to 393ZA . Clause 29 replaces section 233, which currently allows a territorial authority to transfer 1 or more of its functions, duties, or powers under the Act to another territorial authority. New section 233 extends this provision to allow a transfer to 1 or more stand-alone BCAs. The provision also provides that if a transferee is unable (for any reason) to perform or exercise a transferred function, duty, or power, the territorial authority must perform that function or duty and may exercise that power. Clause 30 replaces section 234, which relates to the procedure for transfer. New section 234 — extends the provision to cover a transfer to a stand-alone BCA. In this case, a territorial authority may serve a notice of transfer on the Minister only after it receives confirmation from the chief executive that, if the transfer proceeds, the BCA would continue to meet the criteria for registration. In addition, the territorial authority must be satisfied that the transfer is desirable on the grounds of efficiency or of technical or special capability or expertise, or both; and removes the requirement to use the special consultative procedure in section 83 of the Local Government Act 2002. Clause 31 inserts new section 234A to require a stand-alone BCA to notify the chief executive of a proposed transfer. See clause 25 and the amendments to section 196. Clause 32 replaces section 235, which relates to an agreement on a transfer that a transferor and a transferee must enter into. An agreement must now include terms and conditions relating to— the notification of any adverse change in circumstances, and other requirements to facilitate the transferor’s ability to act under new section 233(2)(c) in the event that a transferee is unable (for any reason) to perform or exercise a transferred function, duty, or power; and the fees or charges that a stand-alone building consent authority will charge. Clause 33 replaces section 236, which relates to the effect of a transfer, and inserts new sections 236A to 236E . In summary,— new section 236 is extended to cover the effect of a transfer to a stand-alone BCA: new section 236A provides for the apportionment of liability if a function, duty, or power is transferred: new sections 236B to 236E provide for the delegation of building consent-related matters to another territorial authority or stand-alone BCA to which a transfer has been made under new section 233 . Clauses 34 to 36 amend subpart 3 of Part 3, which currently relates to the responsibilities of a stand-alone BCA. The amendments extend the application of the subpart to a territorial authority that provides services as a BCA for a district, but that is not— the territorial authority for that district; or another territorial authority that is acting on behalf of a territorial authority under section 213, or to which a function, duty, or power is transferred under new section 233 . Clause 38 amends section 250 to refer to the building consent accreditation body accrediting a BCA to perform functions under new subpart 2C of Part 5 . Clauses 39 and 40 amend sections 273 and 274. The amendments require the chief executive to keep a register of home warranty providers ( see new subpart 2D of Part 5 as inserted by clause 47 ). The purpose of the register is to enable members of the public to know the names and contact details of registered home warranty providers and persons whose registration as a provider is suspended. Clause 41 amends section 317 to provide an additional ground for disciplinary procedures against a licensed building practitioner. That ground is the failure to provide an off-site dwelling constructor with either a record of work on completion of the building work, in accordance with new section 88(1B) , or a certificate of work issued under section 45AA in relation to the design work in the design plans for the dwelling. Clause 42 amends the definition of residential building contract in section 362B to exclude an agreement that relates to the purchase of an off-site constructed dwelling if the purchaser intends to resell it. Clause 43 amends section 362I to include an implied warranty, in relation to an off-site constructed dwelling, that the dwelling will be suitable for the purpose for which it will be used. Clause 44 amends section 362V to disapply that section to an off-site constructed dwelling. Clause 45 amends section 391, which relates to civil proceedings against building consent authorities. The amendment requires a proceeding relating to the issue of a building consent or a code compliance certificate to be determined in accordance with new subpart 2A of Part 5 . Clauses 46 and 47 insert new subparts 2A to 2D into Part 5. New subpart 2D comes into force 3 months after Royal assent to give an opportunity for providers of home warranties to become registered before the requirements to have a home warranty under new subpart 2C come into force (on the first anniversary of Royal assent). New subpart 2A of Part 5 implements proportionate liability for defective building project work. Instead of defendants being jointly and severally liable for the full amount of the economic loss relating to the defects, they will be liable only for the proportion of the responsibility that a court or an adjudicator attributes to them. In summary,— the main rule is that the liability of a defendant in relation to certain claims is limited to an amount that reflects the proportion of the loss or damage claimed that the court or adjudicator considers just and equitable, having regard to the extent of the defendant’s responsibility for the loss or damage: the subpart applies to a claim for loss or damage in a proceeding for damages (whether at common law, in equity, or under any legislation) arising out of or relating to defective building project work. It applies to court and tribunal proceedings. It also applies to adjudication proceedings (for example, an arbitration). However, it does not apply to a claim dealt with by alternative dispute resolution by agreement (for example, mediation, negotiation, or settlement agreements): building project work is defined broadly to include building work, design work, and work carried out by territorial authorities or building consent authorities: the subpart prohibits contracts for residential building work from including a provision that excludes or limits liability: a defendant against whom a court judgment is given under the subpart cannot be required to contribute to any damages or contribution recovered from another concurrent wrongdoer and cannot be required to indemnify that other concurrent wrongdoer. New subpart 2B of Part 5 requires professional indemnity insurance contracts for those people who contribute, through advice or other services, to the design or compliance of building work (for example, architects, designers, engineers, and building surveyors). The subpart refers to those people as design consultants. The subpart applies if the total price of the building work is $100,000 or more (including goods and services tax). A person who fails to comply with the requirement to have professional indemnity insurance commits an offence and is liable to a maximum fine of $50,000 for an individual or $150,000 for a body corporate. New subpart 2B — applies to design consultants. This term is defined by the regulations. Clause 48 amends section 402 to impose a safeguard relating to this regulation-making power. The Minister may recommend the regulations only if the Minister is satisfied that a person who will become a design consultant is a person who contributes, through advice or other services, to the design or compliance of building work (for example, a person who prepares plans and specifications for building work or who gives advice on the compliance of building work with the building code): does not apply to a person acting on behalf of a territorial authority or building consent authority to carry out an inspection and the issuing of a consent: provides for the minimum requirements for professional indemnity insurance contracts, including that a contract must— provide an adequate level of indemnity for any liability under new subpart 2A ; and comply with the requirements prescribed in the regulations: allows terms to be implied into professional indemnity insurance contracts by the regulations: requires design consultants to disclose details of their professional indemnity insurance contract in accordance with the regulations. A design consultant who fails to comply commits an infringement offence with a maximum fine of $2,000. Knowingly making a false or misleading statement in a disclosure is also an offence with a maximum fine of $50,000 for an individual or $150,000 for a body corporate. New subparts 2C and 2D of Part 5 strengthen consumer protection measures in the Act to support the shift to proportionate liability. New subpart 2C — requires home warranties to be in effect for all new builds, including residential houses and small-to-medium apartment buildings and renovations with an estimated value of $100,000 or more (including goods and services tax) (if the building project involves restricted building work and a building consent); and provides for the minimum requirements for home warranties, including that a warranty must— provide an adequate level of coverage for all defective building work for a 1-year period and for structural defects for a 10-year period; and be legally enforceable by the homeowner-client; and be transferable to, and enforceable by, a subsequent owner; and be provided by a person registered under subpart 2D ; and comply with the requirements prescribed in the regulations; and allows terms to be implied into home warranties by the regulations; and provides for a building consent authority to consider whether a required home warranty is in effect. If the authority considers that it does not have sufficient evidence of the home warranty, it must issue a certificate to the effect that, until it has sufficient evidence, no building work may proceed or building work may proceed, but only to the extent stated in the certificate. A person who carries out building work in contravention of a certificate commits an offence with a maximum fine of $50,000 for an individual or $150,000 for a body corporate; and prohibits a person from making false or misleading statements about home warranty products. A person that fails to comply commits an offence with a maximum fine of $50,000 for an individual or $150,000 for a body corporate. New subpart 2D — requires home warranty providers to register with the chief executive of the Ministry of Business, Innovation, and Employment. A provider that fails to register commits an offence with a maximum fine of $300,000 for an individual or $1,500,000 for a body corporate; and provides for the criteria for registration to be set out in the regulations; and provides for the chief executive to assess whether a person continues to meet the criteria for registration. If a person no longer meets the criteria, their registration may be suspended (or revoked if the person does not satisfy the chief executive that they do meet the criteria within 12 months after the suspension); and requires providers to provide information required by the regulations to the chief executive or other persons prescribed by the regulations. A provider who contravenes the requirement commits an infringement offence and is liable to a maximum fine of $20,000; and requires providers to publish plain-language information about their products on a public Internet site. A provider who contravenes the requirement commits an infringement offence with a maximum fine of $5,000; and prohibits a person from making false or misleading statements in any communication or document required under the subpart. A person that fails to comply commits an offence with a maximum fine of $50,000 for an individual or $150,000 for a body corporate. The new provisions also— enable, by Order in Council, the temporary disapplication of the requirements for professional indemnity insurance contracts or home warranties (or both). This applies if circumstances have occurred, or are reasonably expected to occur, that materially affect the availability or affordability (or both) of those contracts or warranties; and enable a disapplication to be imposed at any time, for up to 2 years, and to be extended or revoked, with each extension limited to a maximum of 2 years. In summary, the new provisions allow regulations to be made relating to— the classes of damages that may be excluded from the scope of new subpart 2A ; and how the $100,000 thresholds are calculated in connection with the requirements to have professional indemnity insurance or home warranties under new subparts 2B and 2C ; and who is a design consultant and what design or other services are covered by the requirement to have professional indemnity insurance; and the minimum requirements for professional indemnity insurance contracts and home warranties; and disapplying the requirement to have a home warranty for certain classes of building work or circumstances; and the manner in which a building consent authority must consider evidence of a home warranty; and the circumstances in which a business that arranges home warranties on behalf of another business is required to be registered as a home warranty provider; and the criteria for registration as a home warranty provider and the application requirements; and the disclosure requirements for design consultants and registered home warranty providers. Clause 48 amends section 402, which provides the power to make regulations, in the following ways: regulations prescribing the rate of the levy to be paid under section 53 must provide for the rate to be in 2 parts, 1 part for the general component, and 1 part for the research component: as noted above, new section 402(2A) adds a safeguard relating to regulations that define the term design consultants. See new subpart 2B of Part 5 inserted by clause 46 . Clause 49 amends section 405 to include a notice setting performance criteria for a solar electricity generating building or a sustainable building in the list of instruments which may be incorporated by reference into other specified instruments, solutions, and methods. Clause 50 amends Schedule 1AA to insert new Part 6 containing transitional provisions. The new Part provides that— the proportionate liability provisions apply only to building work for which a building consent is issued on or after the provisions come into force or that is started after that commencement: the duty for a home warranty provider to be registered applies only on and after the date when the home warranty requirements come into force (on the first anniversary of Royal assent of the Act): the changes made by the Bill apply on and after 15 January 2026 in respect of any off-site dwelling constructor and any off-site constructed dwelling for which construction began on or after that date: if a building consent granted before the repeal of the Building Research Levy Act 1969 on 1 April 2027 is amended on or after that date and the amendment to the consent results in the estimated cost increasing, a transitional research levy is payable to the chief executive. Clause 51 amends Schedule 1A to clarify that an off-site constructed dwelling is to be treated as new for the purposes of that schedule. REPEAL AND AMENDMENTS TO OTHER LEGISLATION Clause 52 repeals the Building Research Levy Act 1969. Clause 54 amends section 12 of the Arbitration Act 1996 to ensure that the powers of an arbitral tribunal in deciding a dispute are subject to new subpart 2A of Part 5 of the Building Act 2004. Clauses 56 to 61 amend the Construction Contracts Act 2002. In summary, the amendments— allow a claimant to seek a determination under section 50 of that Act that an owner who is not a respondent has proportionate liability under new subpart 2A of Part 5 of the Building Act 2004 (if that subpart applies); and provide for an adjudicator to make that determination. The changes would apply instead of the current rule, which provides for a claimant to seek a determination under section 50 that an owner who is not a respondent is jointly and severally liable with the respondent to make a payment to the claimant. The amendments also ensure that an adjudicator, in determining a dispute, must consider new subpart 2A of Part 5 of the Building Act 2004. Clause 63 amends section 17 of the Law Reform Act 1936. The section relates to persons ( tortfeasors ) who are liable for damages in tort (for example, for negligence). This section allows a tortfeasor who is liable in respect of certain damage to recover a contribution from any other tortfeasor who is, or would, if sued in time, have been, liable in respect of the same damage. The amendment provides that this section does not apply if new subpart 2A of Part 5 of the Building Act 2004 applies. Clauses 65 and 66 amend the Plumbers, Gasfitters, and Drainlayers Act 2006 in connection with the off-site dwelling changes in the Bill. Clauses 68 to 93 amend the following secondary legislation: the Building (Definition of Restricted Building Work) Order 2011: the Building (Forms) Regulations 2004: the Building (Infringement Offences, Fees, and Forms) Regulations 2007, to prescribe infringement fees for the infringement offences in new sections 393P, 393ZO, and 393ZP : the Building (Residential Consumer Rights and Remedies) Regulations 2014: the Electricity (Safety) Regulations 2010: the Gas (Safety and Measurement) Regulations 2010: the Plumbers, Gasfitters, and Drainlayers Regulations 2010. The Parliament of New Zealand enacts as follows: 1 Title This Act is the Building Amendment Act 2026 . 2 Commencement Sections 4(1) and (7) , 6(2) , 9(1) , 15 , 16 , 25 to 27 , 29 to 36 , 48 to 50 , and 71 come into force on the day after Royal assent (those provisions that mainly relate to building consent authorities, sustainable buildings, and solar buildings). Sections 4(2) to (5) , 7 , 8 , 9(2) , 11 , 12 , 14 , 19 , 20 , 41 to 44 , 51 , 65 , 66 , 68 , 69 , 72 to 77 , 81 to 84 , 86 , 87 , 89 , 90 , 92 , and 93 come into force 1 month after Royal assent (those provisions that relate to off-site constructed small stand-alone dwellings). Sections 39 , 40 , 47 , and 79 come into force 3 months after Royal assent (those provisions that relate to the registration of home warranty providers). Sections 4(6) , 5 , 18 , 21 , and 52 come into force on 1 April 2027 (those provisions that relate to levies). The rest of this Act comes into force on the first anniversary of Royal assent (those provisions that relate to proportionate liability, professional indemnity insurance, and home warranties). 3 Principal Act This Part amends the Building Act 2004. 4 Section 7 amended (Interpretation) In section 7(1), insert in its appropriate alphabetical order: council-controlled organisation has the meaning given to it in section 6 of the Local Government Act 2002 In section 7(1), replace the definition of final design plans with: final design plans , in relation to a completed non-consented small stand-alone dwelling, means the final drawings and specifications to which the dwelling was constructed, including both the completed dwelling and the associated sitework and building work that was carried out as part of constructing or installing the dwelling on the final site In section 7(1), replace the definition of non-consented small stand-alone dwelling with: non-consented small stand-alone dwelling means a small stand-alone dwelling that the owner builds, or intends to build, without obtaining a building consent, and includes both a dwelling constructed on the final site and an off-site constructed dwelling that is purchased by the owner of the final site In section 7(1), replace the definition of preliminary design plans with: preliminary design plans , in relation to a non-consented small stand-alone dwelling, means the preliminary design drawings (including a site plan, elevations, and basic sections) to which the dwelling is constructed or is proposed to be constructed, as the case requires (irrespective of whether the dwelling is constructed on the final site or is an off-site constructed dwelling) In section 7(1), insert in their appropriate alphabetical order: final site , in relation to a non-consented small stand-alone dwelling, means the location on the land where the dwelling is to be located for the duration of its intended use on completion of the building work (irrespective of where the dwelling was constructed) off-site constructed dwelling , in relation to a small stand-alone dwelling, means a dwelling that is constructed by an off-site dwelling constructor— a at a location that is not its final site; and b for the purpose of making use of an exemption provided for under section 42B from obtaining a building consent off-site dwelling constructor , in relation to a small stand-alone dwelling, means a person who carries out building work in connection with an off-site constructed dwelling In section 7(1), insert in their appropriate alphabetical order: building research component means the part of the building levy referred to in section 53(1AA)(b) contestable research fund means the portion of the building research component specified by the chief executive as a contestable research fund under section 175AD general component means the part of the building levy referred to in section 53(1AA)(a) In section 7(1), insert in their appropriate alphabetical order: solar electricity-generating building has the meaning given to it by section 47A sustainable building has the meaning given to it by section 47A 5 Section 11 amended (Role of chief executive) After section 11(c), insert: caa commissions, promotes, and funds building research under sections 175AB to 175AG ; and 6 Section 12 amended (Role of building consent authority and territorial authority) After section 12(1)(a), insert: aa considers whether home warranties are required under subpart 2C of Part 5 and, if it does not have sufficient evidence of required home warranties, issues certificates under that subpart; and After section 12(2), insert: 3 Subsection (2)(a) does not apply to a function set out in subsection (1)(a) that is transferred under section 233 . 7 Section 32 amended (Owner may apply for project information memorandum) Replace section 32(2) with: 2 No building work may begin at the final site for a non-consented small stand-alone dwelling before a project information memorandum in relation to its final site has been issued under section 34 by the relevant territorial authority. 8 Section 33 amended (Content of application) Replace section 33(1A) with: 1A In the case of a project information memorandum for building work in connection with a non-consented small stand-alone dwelling, the application must, in addition to complying with subsection (1), contain the following information: a a description of the proposed building work (including the details of any off-site constructed dwelling constructed, or yet to be constructed, as part of the building work): b preliminary design plans for the proposed building work (including the design plans for any off-site constructed dwelling constructed, or yet to be constructed, as part of the building work). 9 Section 34 amended (Issue of project information memorandum) Replace section 34(1) with: 1 A territorial authority must issue a project information memorandum within 10 working days after receiving an application under section 31(1)(a) or 32. In section 34(5), replace on a particular site (the final site ) with on the final site . 10 Section 35 amended (Content of project information memorandum) After section 35(1)(h), insert: ha a certificate issued under section 393Y (if any) and, if the certificate is cancelled, a statement to that effect; and 11 Section 35A amended (Additional information to be supplied in certain circumstances) In section 35A(2)(b), after construction of the dwelling , insert , in relation to its proposed final site, . 12 Section 42B amended (Building work for which building consent is not required under Schedule 1A) In section 42B(3)(c), replace on a non-consented with at the final site for a non-consented . In section 42B(3)(d), after the building work , insert that is carried out at the final site . In section 42B(3)(e), after is not constructed , insert or located at its final site . After section 42B(3)(e), insert: f a non-consented small stand-alone dwelling (including any off-site constructed dwelling) must not be occupied until the building work at the final site is complete (within the meaning of subsection (6)): g if an off-site constructed dwelling is to be used as part of the building work, a certificate of work must be issued under section 45AA for the design work in the design plans for the off-site constructed dwelling before any building work on that dwelling begins off-site. In section 42B(4)(b), after certificate , insert or certificates . In section 42B(6), replace and gasfitters with gasfitters, off-site dwelling constructors, and (if applicable) the reseller of a dwelling referred to in subsection (6B) . After section 42B(6), insert: 6A An off-site dwelling constructor must, before the off-site constructed dwelling is transported to the final site for the non-consented dwelling, provide the owner of the final site with— a all relevant records set out in subsection (6)(a) to (d): b a set of design plans for that dwelling: c any certificates of work required by section 45AA. 6B However, if an off-site dwelling constructor sells an off-site constructed dwelling to another person ( person A ) who then resells the dwelling to the owner of the final site, the off-site dwelling constructor must provide the records, design plans, and certificates of work referred to in subsection (6A) to person A, who must then provide them to the owner of the final site. 13 Section 45 amended (How to apply for building consent) After section 45(1)(bc), insert: bd if a home warranty is in effect for the purposes of subpart 2C of Part 5 , be accompanied by a copy of the home warranty; and 14 Section 45AA amended (Certificate of work required for non-consented small stand-alone dwelling) Replace section 45AA(2) with: 2 The final design plans containing design work for building work that is restricted building work must be accompanied by— a a certificate of work; or b if the design plans relate to building work for an off-site constructed dwelling, a certificate of work for the dwelling and a certificate of work for the building work on its final site. 15 New section 47A inserted (Application for building consent for solar electricity-generating building or sustainable building) After section 47, insert: 47A Application for building consent for solar electricity-generating building or sustainable building 1 This section applies to an application for a building consent— a in relation to a solar electricity-generating building or sustainable building; and b for which the applicant wishes the time limit in section 48(1A)(ac) to apply. 2 If this section applies, an application made under section 45 must be accompanied by any required supporting documents demonstrating the building’s compliance with any performance criteria set under subsection (3) . 3 The chief executive may, by notice, set performance criteria for a sustainable building or solar electricity-generating building, and require the production of any supporting documents demonstrating compliance with those criteria, for the purpose of this section. 4 Performance criteria for a sustainable building may only relate to 1 or more of the following: a the building’s energy efficiency: b the building’s embodied carbon, taking into account the construction methods used and the life cycle of the building and its building materials: c the building’s climate resilience: d the building’s water efficiency. 5 Performance criteria for a solar electricity-generating building may only relate to a building’s minimum expected solar electricity generation per household unit. 6 In this section,— solar electricity-generating building means a residential building comprising 1 or more household units that— a meets the performance criteria for a solar electricity-generating building set out in a notice made under subsection (3) ; and b is not more than 3 storeys high; and c does not have a specified system (within the meaning of section 7(1) or 402(1)(o)) sustainable building means a residential building comprising 1 or more household units that— a meets the performance criteria for a sustainable building set out in a notice made under subsection (3) ; and b is not more than 3 storeys high; and c does not have a specified system (within the meaning of section 7(1) or 402(1)(o)). 7 A notice made under subsection (3) is secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 16 Section 48 amended (Processing application for building consent) After section 48(1A)(ab), insert: ac 10 working days after receipt by the building consent authority of the application if— i the building work is work for or in connection with the construction of a whole building; and ii the building will be a solar electricity-generating building or sustainable building; and iii the application is accompanied by supporting documents as provided for in section 47A(2) ; and 17 Section 51 amended (Issue of building consent) After section 51(1)(b)(iii), insert: iv a certificate issued under section 393Y (if any) and, if that certificate is cancelled before the consent is issued, a statement to that effect; and v a home warranty that is in effect for the purposes of subpart 2C of Part 5 (if any); and 18 Section 53 amended (Applicant for building consent liable to pay levy) After section 53(1) insert: 1AA The levy is made up of the following 2 parts: a the general component, which the chief executive may use for, or in connection with, the performance of the functions set out in subsection (1A): b the building research component, which the chief executive may use for, or in connection with, the performance of the chief executive’s functions under section 11(caa) : In section 53(1A), replace levy with general component of the levy . 19 Section 88 amended (Licensed building practitioner to provide record of work in respect of restricted building work) After section 88(1A), insert: 1B If building work is carried out in connection with an off-site constructed dwelling, each licensed building practitioner who carries out or supervises building work on the dwelling off-site must, on the completion of that work, provide the off-site dwelling constructor with a record of the work, in the prescribed form (if any), stating what restricted building work the licensed building practitioner carried out or supervised. In section 88(4), replace or (1A) with , (1A), or (1B) . 20 Section 96 amended (Territorial authority may issue certificate of acceptance in certain circumstances) In section 96(1)(a)(i), after of the owner , insert or an off-site dwelling constructor . 21 New sections 175AB to 175AG and cross-heading inserted After section 175A, insert: Building research 175AB Purpose of building research component 1 The purpose of the building research component is to enable the chief executive to commission, promote, and fund building research that is likely to develop, maintain, or increase— a knowledge or understanding relating to the design, construction, and performance of buildings; or b scientific or technological expertise that is of particular importance to the building sector. 2 The purpose set out in subsection (1) includes the commissioning, promoting, and funding of activities that disseminate and provide access to the knowledge, understanding, and expertise gained from building research to building practitioners, other parts of the building sector, and persons providing services to the building sector. 3 Building research commissioned, promoted, or funded under subsection (1) must be research that is— a likely to be effectively applied by building practitioners, other parts of the building sector, or persons providing services to the building sector; and b likely to benefit building levy payers; and c unlikely to be funded, or adequately funded, by non-governmental sources. 175AC Research strategy 1 The chief executive must develop and maintain a long-term building research strategy. 2 The purpose of the research strategy is to set out how the chief executive intends to use the building research component. 3 The chief executive must consult the public when developing, amending, or replacing the research strategy (except in the case of a minor or technical amendment). 4 The chief executive must promptly ensure that a new, amended, or replacement research strategy is made publicly available on the Ministry’s Internet site. 175AD Contestable research fund 1 The chief executive must, from time to time by public notification, specify a portion of the building research component as a contestable research fund that will be made available for allocation to persons proposing to conduct building research and any activities described in section 175AB(2) . 2 The chief executive must, when publicly notifying a contestable research fund, publicly notify an investment plan for that fund that is consistent with the research strategy. 3 The purpose of an investment plan is to provide information about— a the topics or types of research sought; and b any other relevant information. 4 The chief executive must publicly notify the following information: a the eligibility criteria for applicants and the proposed research: b how to apply: c the requirements for proposals: d the decision-making process: e the key dates. 175AE Establishment of investment advisory panel 1 The chief executive must appoint an investment advisory panel that has the following members: a 1 person to convene and chair the panel: b a minimum of 3 and a maximum of 6 other members. 2 The chief executive must,— a before appointing a member, publicly notify the vacancy in a manner that enables suitably qualified individuals to apply for appointment; and b ensure that the panel is comprised of persons with expertise in the following sectors: i building: ii research: iii government: iv any other sector the chief executive thinks relevant. 3 The chief executive must determine terms of reference for the panel, which may include any or all of the following: a the process for appointing and terminating members: b the conditions of membership, including term: c meeting requirements and procedure, including quorum: d the remuneration of members: e arrangements to avoid or manage conflicts of interest: f arrangements for administrative support for the panel: g any other matter the chief executive considers appropriate. 4 The chief executive must publicly notify new, amended, or replacement terms of reference. 175AF Functions of investment advisory panel 1 The functions of the investment advisory panel are to— a assess proposals for the allocation of funding from a contestable research fund; and b provide advice to the chief executive about the proposals; and c make recommendations to the chief executive about the decisions to be made under section 175AG . 2 In performing its functions, the investment advisory panel must consider— a the building research strategy; and b the relevant investment plan; and c the needs of levy payers as a group; and d any other relevant information. 175AG Allocation of funding 1 After the investment advisory panel has performed its functions in relation to a contestable research fund, the chief executive must decide how to allocate the fund. 2 A decision under subsection (1) must include decisions about the following matters: a the person that is to be allocated funding: b the amount of the funding: c the duration of the funding: d the purpose for which the funding may be used: e any other conditions relating to the allocation of the funding. 3 When making decisions under this section, the chief executive must consider— a the matters set out in section 175AF(2)(a) to (d) ; and b the eligibility criteria for applicants and proposed activities; and c the advice and recommendations of the investment advisory panel. 22 Section 177 amended (Application for determination) In section 177(2), after in respect of , insert , or under, . After section 177(2)(f), insert: g sections 393Y to 393ZB (which relate to home warranties). 23 Section 183 amended (Decision or exercise of power suspended until determination made) After section 183(2)(b), insert: c any decision under sections 393Y to 393ZB . 24 Section 193 amended (Effect of registration) In section 193(1), replace and Part 2 with , Part 2, and subpart 2C of Part 5 . 25 Section 196 amended (Registration continuous so long as person meets criteria for registration) After section 196(2), insert: 3 If a stand-alone building consent authority notifies the chief executive under section 234A that the authority is considering agreeing to a transfer under section 233 , the chief executive must— a assess whether, if the transfer proceeds, the authority would continue to meet those criteria (and, therefore, whether the authority would be entitled to the continuation of its registration); and b notify the stand-alone building consent authority of the outcome of the assessment (that is, whether, if the transfer proceeds, the authority would continue to meet those criteria); and c send a copy of the notification to the territorial authority that proposes to transfer any of its functions, duties, or powers under section 233 ( see section 234(2) ). 26 Section 212 amended (Territorial authority must act as building consent authority for its district) Replace section 212(4) with: 4 Subsection (1)— a is subject to the territorial authority’s power to transfer, under section 233 , any or all of its functions, duties, or powers under this Act to any of the following (a transferee ): i 1 or more other territorial authorities: ii 1 or more stand-alone building consent authorities; and b does not apply to a function transferred under section 233 as long as the territorial authority remains satisfied (on reasonable grounds) that the transferee remains able to perform the function. Example A territorial authority transfers all of the functions of a building consent authority referred to in subsection (1) to a stand-alone building consent authority. The transferee is able to perform those functions. Subsection (1) does not apply to the transferred functions. This means that the territorial authority— no longer has a duty to perform the functions; and does not need to be accredited under section 215(a) or to register as a building consent authority under section 215(b) (because it is no longer required to perform any functions under subsection (1)). 27 Section 215 replaced (Territorial authority must gain accreditation and be registered) Replace section 215 with: 215 Territorial authority must gain accreditation and be registered If a territorial authority is required to perform a function under section 212(1), the territorial authority must— a apply for, and gain, accreditation under this Part in relation to that function; and b apply to be, and be registered as, a building consent authority under this Part; and c maintain that accreditation and registration at all times. 28 Section 219 amended (Territorial authority may impose fee or charge and must collect levy) After section 219(2), insert: 3 A failure by a person to pay a fee, charge, or levy does not affect the duty of a territorial authority under sections 393Y to 393ZA . 29 Section 233 replaced (Transfer of functions, duties, or powers of territorial authority) Replace section 233 with: 233 Transfer of functions, duties, or powers of territorial authority 1 A territorial authority (a transferor ) may transfer 1 or more of its functions, duties, or powers under this Act to any of the following (a transferee ): a 1 or more other territorial authorities: b 1 or more stand-alone building consent authorities. 2 However,— a a transferor may transfer a particular kind of function, duty, or power to only 1 transferee; and b the power of transfer conferred by this section may not be transferred; and c if a transferee is unable (for any reason) to perform or exercise a transferred function, duty, or power, the transferor must perform that function or duty and may exercise that power. 30 Section 234 replaced (Procedure for transfer) Replace section 234 with: 234 Procedure for transfer 1 If a territorial authority proposes to transfer any of its functions, duties, or powers under section 233 , the territorial authority must— a serve notice on the Minister of its proposal to transfer the function, duty, or power ( see subsection (2)(a) ); and b in the case of any function set out in section 212(1), be satisfied that the transfer is consistent with the efficient and effective performance of that function; and c meet whichever of the requirements in subsection (2)(b) or (3) is applicable. 2 The following applies if the proposed transferee is a stand-alone building consent authority: a the territorial authority may serve a notice under subsection (1)(a) only after it receives a copy of a notice under section 196(3)(c) that confirms that, if the transfer proceeds, the transferee would continue to meet the criteria for registration specified in section 192: b the territorial authority must be satisfied that the transfer is desirable on either or both of the following grounds: i efficiency: ii technical or special capability, or expertise. 3 If the proposed transferee is another territorial authority, the transferring territorial authority must agree with that territorial authority that the transfer is desirable on either or both of the following grounds: a efficiency: b technical or special capability, or expertise. 1991 No 150 s 25(3) 31 New section 234A inserted (Stand-alone building consent authority must notify chief executive of proposed transfer) After section 234 (as inserted by section 30 ), insert: 234A Stand-alone building consent authority must notify chief executive of proposed transfer 1 This section applies if— a a territorial authority proposes to transfer, under section 233 , any of its functions, duties, or powers to a stand-alone building consent authority; and b the stand-alone building consent authority is considering agreeing to the transfer. 2 The stand-alone building consent authority must notify the chief executive— a that it is considering agreeing to the transfer; and b of which functions, duties, and powers the territorial authority proposes to transfer. 3 The notification must be made as soon as practicable after the stand-alone building consent authority begins to consider agreeing to the transfer. 32 Section 235 replaced (Territorial authorities may agree on terms of transfer) Replace section 235 with: 235 Agreement on terms of transfer 1 A transferor and a transferee under section 233 — a must enter into an agreement in respect of the transfer; and b may agree on the terms and conditions of the transfer. 2 An agreement must include terms and conditions that— a require the transferee to notify the transferor of any change in circumstances that adversely affects the transferee’s capacity to perform or exercise a transferred function, duty, or power in an efficient and effective manner; and b facilitate the transferor’s ability to act under section 233(2)(c) in the event that a transferee is unable (for any reason) to perform or exercise a transferred function, duty, or power. 3 If functions, duties, or powers are to be transferred to a stand-alone building consent authority that is not a council-controlled organisation, the agreement must include terms and conditions relating to the fees or charges that the stand-alone building consent authority will charge. 1991 No 150 s 25(4) 33 Section 236 replaced (Effect of transfer) Replace section 236 with: 236 Effect of transfer 1 A transferee to which a function, duty, or power is transferred under section 233 may, unless the agreement in respect of the transfer provides otherwise,— a perform or exercise the function, duty, or power in the same manner, subject to the same restrictions, and with the same effect as if it had been imposed or conferred directly by this Act and not by a transfer; and b cancel, at any time, the transfer in accordance with that agreement. 2 A transferor may, at any time, change or revoke the transfer by written notice to the transferee. 1991 No 150 s 25(5)–(7) 236A How liability apportioned if function, duty, or power is transferred If a transferor transfers a function, duty, or power under section 233 to a transferee,— a the transferee is liable for its acts and omissions when it is acting in that capacity; but b the transferor and transferee may, in the agreement in respect of the transfer, apportion the liability— i as between themselves; and ii as they see fit. Delegation of building consent-related matters 236B Delegation in connection with transfer of building consent functions 1 This section applies if— a a territorial authority (the transferor ) transfers, under section 233 , 1 or more functions referred to in section 212(1) to any of the following (a transferee ): i another territorial authority: ii a stand-alone building consent authority that is a council-controlled organisation; and b the transferor considers that, having regard to the transferred functions, it is necessary or desirable for the transferee to perform or exercise 1 or more of the transferor’s other functions, duties, or powers under any of the following provisions: i section 34 (issuing a project information memorandum): ii section 67 (granting a building consent subject to a waiver or modification of the building code): iii sections 72 and 73 (granting a building consent for building on land subject to natural hazards): iv section 75 (issuing a certificate relating to the construction of a building on land comprising 2 or more allotments): v section 112(2) (giving a notice to allow an alteration without the building complying with the provisions of the building code): vi section 114 (receiving a notice of a change of use, an extension of life, or a subdivision of land in relation to a building): vii section 115 (giving a notice that the territorial authority is satisfied of certain matters): viii section 116 (giving a consent to an extension of life): ix section 116A (issuing a certificate only if satisfied of certain matters): x section 164 (issuing a notice to fix): xi section 363A (issuing a certificate for public use): xii clause 2 of Schedule 1 (granting a building consent exemption): xiii the provisions (if any) prescribed by the regulations for the purposes of this subparagraph. 2 The transferor may delegate to the transferee, either generally or particularly, any of the functions, duties, or powers referred to in subsection (1)(b) (but not this power of delegation). 3 A delegation— a must be in writing; and b may be made subject to any restrictions and conditions that the transferor thinks fit; and c is revocable at any time, in writing; and d does not prevent the performance or exercise of a function, duty, or power by the transferor. 4 The delegation powers in this section are in addition to any other powers of delegation a territorial authority has under this Act or any other legislation. 236C Powers of transferee acting under delegation 1 A transferee to which a function, duty, or power is delegated under section 236B may, unless the delegation provides otherwise, perform or exercise that function, duty, or power in the same manner, subject to the same restrictions, and with the same effect as if it had been imposed or conferred directly by this Act and not by delegation. 2 A transferee that purports to perform or exercise a function, duty, or power under a delegation— a is, in the absence of proof to the contrary, presumed to do so in accordance with the terms of that delegation; and b must produce evidence of the transferee’s authority to do so, if reasonably requested to do so. 236D Effect of delegation on transferor No delegation under section 236B — a affects or prevents the performance or exercise of any function, duty, or power by the transferor; or b affects the responsibility of the transferor for the actions of a transferee acting under the delegation; or c is affected by any change in an office holder, chief executive, or employee of the transferor or transferee. 236E Duty to provide information If a transferor has delegated any functions, duties, or powers under section 236B ,— a the transferor must ensure that there are mechanisms in place to provide the transferee with any information that is reasonably necessary or desirable to enable the transferee to perform or exercise the delegated functions, duties, or powers; and b the transferee must ensure that there are mechanisms in place to provide the transferor with any information that— i the transferee holds in relation to the performance or exercise of the delegated functions, duties, or powers; and ii is reasonably necessary or desirable to enable the transferor to perform or exercise any other functions, duties, or powers under this Act. 34 Section 237 replaced (Application of subpart) Replace section 237 with: 237 Application of subpart This subpart applies to the following building consent authorities: a a stand-alone building consent authority: b a territorial authority that provides services as a building consent authority for a district, but that is not— i the territorial authority for that district; or ii another territorial authority that is acting on behalf of a territorial authority under section 213 or to which a function, duty, or power is transferred under section 233 ; or iii the regional authority whose region includes that district (or another regional authority to which a function, duty, or power is transferred under section 244). 35 Section 238 amended (Duties of stand-alone building consent authority) In the heading to section 238, delete stand-alone . In section 238(1), (2), and (3), delete stand-alone in each place. 36 Section 238A amended (Information to be supplied by stand-alone building consent authority) In the heading to section 238A, delete stand-alone . 37 Section 240 amended (Building consent authority may impose fee or charge and must collect levy) After section 240(3), insert: 4 A failure by a person to pay a fee, charge, or levy does not affect the duty of a building consent authority under sections 393Y to 393ZA . 38 Section 250 amended (Accreditation) In section 250, replace and Part 2 with , Part 2, and subpart 2C of Part 5 . 39 Section 273 amended (Chief executive must keep registers) After section 273(1)(g), insert: h a register of home warranty providers for the purposes of section 393ZH . 40 Section 274 amended (Purpose of registers) After section 274(a)(vii), insert: viii in the case of the register of home warranty providers, the names and contact details of registered home warranty providers and persons whose registration as a provider is suspended; and 41 Section 317 amended (Grounds for discipline of licensed building practitioners) After section 317(1)(daa), insert: dab a licensed building practitioner has failed, without good reason, in respect of restricted building work in connection with an off-site constructed dwelling that they have carried out or supervised, to provide the off-site dwelling constructor— i with a record of work on completion of the restricted building work in accordance with section 88(1B) ; or ii with a certificate of work issued under section 45AA relating to the design work in the design plans for the dwelling; or 42 Section 362B amended (Meaning of building work and residential building contract) In section 362B(1), definition of residential building contract , after paragraph (c), insert: d does not include an agreement that relates to the purchase of an off-site constructed dwelling where the purchaser of that dwelling intends to resell it. 43 Section 362I amended (Implied warranties for building work in relation to household units) In section 362I(1)(a)(ii), after final design plans , insert , or, in the case of an off-site constructed dwelling, the design plans for the dwelling . After section 362I(1)(b), insert: ba if the building work is in connection with an off-site constructed dwelling, that the dwelling will be suitable for the purpose for which it will be used: 44 Section 362V amended (Offence for commercial on-seller to transfer household unit without code compliance certificate) In section 362V(7), after stand-alone dwelling , insert or an off-site constructed dwelling . 45 Section 391 amended (Civil proceedings against building consent authorities) In section 391, insert as subsection (2): 2 Any civil proceedings against a building consent authority in respect of the performance of its statutory function in issuing a building consent or a code compliance certificate must be determined in accordance with subpart 2A (which relates to proportionate liability). 46 New subparts 2A to 2C of Part 5 inserted After section 393, insert: 2A Proportionate liability 393A Interpretation in this subpart 1 In this subpart, unless the context otherwise requires,— adjudication — a means a type of dispute resolution under which a third-party decision-maker makes a determination about liability that is legally enforceable; and b includes arbitration; and c includes adjudication under the Construction Contracts Act 2002 alternative dispute resolution by agreement — a means a type of dispute resolution under which liability is determined by the parties (not by a third-party decision-maker); and b includes negotiation or mediation (or any settlement agreement) apportionable claim means a claim to which this subpart applies arbitration means arbitration within the meaning of section 2(1) of the Arbitration Act 1996 building project work includes any of the following: a building work: b design work for, or in connection with, the construction or alteration of a building, including contributing, through advice or other services, to the design or compliance of that building work (for example, preparing plans and specifications for building work and giving advice on the compliance of building work with the building code): c the performance of functions or duties imposed, or the exercise of powers conferred, on a territorial authority or a building consent authority under this Act concurrent wrongdoer , in relation to a claim, means a person who is one of 2 or more persons whose act or omission (or acts or omissions) caused, independently of each other or jointly, the loss or damage that is the subject of the claim court includes a tribunal and, in relation to a claim for damages, means any court or tribunal by or before which the claim falls to be determined damages includes any form of monetary compensation but does not include payments of a class excluded by the regulations defective building project work means any building project work— a that is defective; or b that contributes to loss or damage in relation to a building project and is any of the following: i work that does not comply with the building code, a building consent, or the plans and specifications to which a building consent relates: ii work that is not complete proceeding — a has the same meaning as in section 13 of the Legislation Act 2019; and b includes an adjudication. 2 A reference in this subpart to a defendant in a proceeding— a includes, in relation to a proceeding in or before a court, any person joined as a defendant or other party in the proceeding (except as a plaintiff), whether joined under rules of court or otherwise; and b in relation to an adjudication,— i means a party to an adjudication agreement; or ii in any case where an adjudication does not involve all the parties to the adjudication agreement, means a party to the adjudication. 393B Application of this subpart 1 This subpart applies to a claim for loss or damage in a proceeding for damages (whether at common law, in equity, or under any legislation) arising out of or relating to defective building project work. 2 This subpart does not apply to any of the following: a a claim arising out of personal injury ( see section 317 of the Accident Compensation Act 2001): b a claim dealt with by way of alternative dispute resolution by agreement. 3 For the purposes of this subpart, there is a single apportionable claim in a proceeding in respect of the same loss or damage even if the claim for the loss or damage is based on more than 1 cause of action (whether or not of the same or a different kind). 4 For the purposes of this subpart, it does not matter that a concurrent wrongdoer is insolvent, is being wound up, or has ceased to exist or died. Example A builder, an architect, and a building consent authority share responsibility equally for a building defect. The building defect causes a $1 million loss. The owner seeks damages from the architect and the building consent authority. The builder is being wound up and is not a party to the proceeding. The effect of subsection (3) is that the $1 million loss is 1 single apportionable claim, even if separate causes of action may exist in contract and tort. The effect of subsection (4) is that it does not matter, for the purposes of proportionate liability, that the builder is being wound up (therefore, the builder’s share of responsibility can still be determined to be 33.3%, if the 3 parties share responsibility equally). 393C Prohibition on excluding or limiting liability for residential building work 1 This section applies to a contract to carry out any restricted building work in relation to a house or a small-to-medium apartment building. 2 The contract must not contain a provision that excludes or limits any liability of a person arising out of or relating to defective building project work. 3 A provision of a contract that breaches subsection (2) is of no effect. Guidance note See section 13(i) of the Fair Trading Act 1986, which creates an offence for a person in trade to make a false or misleading representation concerning the existence, exclusion, or effect of any condition, warranty, guarantee, right, or remedy. A person in trade who, in connection with the supply or possible supply of goods or services under a contract, makes a false or misleading representation about their potential liability under that contract commits an offence under that section. 4 Section 393B does not limit the application of this section. 5 In this section, house and small-to-medium apartment building have the same meanings as in section 393U . 393D Proportionate liability for apportionable claims 1 In a proceeding involving an apportionable claim,— a the liability of a defendant who is a concurrent wrongdoer in relation to that claim is limited to an amount reflecting that proportion of the loss or damage claimed that the court or adjudicator considers just and equitable, having regard to the extent of the defendant’s responsibility for the loss or damage; and b the court may give judgment, or the adjudicator may make a decision, against the defendant for not more than that amount. Example 1 A fire in a high-rise apartment building is caused by a certain combustible material. The court issues a decision that holds the fire engineer responsible for 39% of the damages, the architect responsible for 25% of the damages, the building consent authority responsible for 33% of the damages, and the builder responsible for 3% of the damages. Example 2 A property owner contracts with a head contractor to construct a new house. The head contractor subcontracts the roofing aspects of the construction to a roofing subcontractor. A building defect in the roof of the new house causes a $100,000 loss, which is a single apportionable claim even if separate causes of action may exist in contract and tort. The owner brings a breach of contract claim in court against the head contractor. The head contractor joins the roofing subcontractor and the building consent authority as parties to the proceeding. The court issues a decision that holds the head contractor responsible for 70% of the damages, the roofing subcontractor responsible for 20% of the damages, and the building consent authority responsible for 10% of the damages. 2 If the proceeding involves both an apportionable claim and a claim that is not an apportionable claim,— a liability for the apportionable claim is to be determined in accordance with this subpart; and b liability for the other claim is to be determined in accordance with the legal rules, if any, that (apart from this subpart) are relevant. 3 In apportioning responsibility between defendants in the proceeding, the court or adjudicator must exclude that proportion of the loss or damage in relation to which the plaintiff is contributorily negligent under any relevant law. Guidance note See the Contributory Negligence Act 1947. 4 This section applies in a proceeding involving an apportionable claim whether or not all concurrent wrongdoers are parties to the proceeding. 5 This section does not limit the Interest on Money Claims Act 2016. 393E Party to concluded court proceeding must not be joined in subsequent proceeding 1 If a person was a party to any concluded court proceeding in respect of an apportionable claim, the person must not be joined as a defendant or other party in a subsequent proceeding involving the same apportionable claim. 2 This section applies despite any rule of court to the contrary. 393F Court may order costs if defendant fails to inform plaintiff about concurrent wrongdoers: court proceedings only 1 This section applies if— a a defendant in a court proceeding involving an apportionable claim has reasonable grounds to believe that a particular person (the other person ) may be a concurrent wrongdoer in relation to the claim; and b the defendant fails to give the plaintiff, as soon as practicable, written notice of the information that the defendant has about— i the identity of the other person; and ii the circumstances that may make the other person a concurrent wrongdoer in relation to the claim; and c the plaintiff unnecessarily incurs costs in the proceeding because the plaintiff was not aware that the other person may be a concurrent wrongdoer in relation to the claim. 2 The court may order that the defendant pay all or any of those costs of the plaintiff. 3 The court may order that the costs to be paid by the defendant be assessed on an indemnity basis or otherwise. 4 This section provides a ground for ordering a party to pay increased or indemnity costs that is in addition to any grounds that apply under the rules of court. 393G Contribution not recoverable from defendant: court proceedings only A defendant against whom a court judgment is given under this subpart as a concurrent wrongdoer in relation to an apportionable claim— a cannot be required by a court to contribute to any damages or contribution recovered from another concurrent wrongdoer in respect of the apportionable claim (whether or not the damages or contribution are recovered in the same proceeding in which judgment is given against the defendant); and b cannot be required by a court to indemnify that other concurrent wrongdoer. 393H Subsequent actions: court proceedings only 1 In relation to an apportionable claim, nothing in this subpart or any other law prevents a plaintiff who has previously recovered judgment in court against a concurrent wrongdoer for an apportionable part of any loss or damage from bringing another court proceeding against any other concurrent wrongdoer for that loss or damage. 2 However, in any court proceeding against any other concurrent wrongdoer, the plaintiff cannot recover an amount of damages that, having regard to any damages previously recovered by the plaintiff in respect of the loss or damage, would result in the plaintiff receiving compensation for loss or damage that is greater than the loss or damage actually sustained by the plaintiff. 393I Subpart not to affect other liability Nothing in this subpart— a prevents a person from being held vicariously liable for a proportion of any apportionable claim for which another person is liable; or b prevents a partner from being held jointly and severally liable with another partner for an apportionable claim for which the other partner is liable; or c affects the operation of any other Act to the extent that it imposes several liability on any person in respect of what would otherwise be an apportionable claim. 2B Professional indemnity insurance contracts 393J Application of this subpart 1 This subpart applies to a person who carries out prescribed design or other services in relation to building project work if the total price for all of that work is not less than $100,000 (including goods and services tax). 2 For the purposes of subsection (1) ,— a the total price must be calculated in the manner specified in the regulations (if any); and b those regulations may provide for any amounts to be included or disregarded (in whole or in part). 393K Interpretation in this subpart In this subpart, unless the context otherwise requires,— building project work has the same meaning as in section 393A design consultant — a means a person of a class that is prescribed by the regulations for the purposes of this definition ( see section 402(2A) ); but b does not include a person acting on behalf of a territorial authority or building consent authority to carry out the inspection and issuing of a consent in respect of building work prescribed design or other services means services in relation to building project work that are prescribed by the regulations for the purposes of this definition professional indemnity insurance contract means a contract that complies with section 393M . 393L Requirement to have professional indemnity insurance contract 1 A design consultant must not carry out prescribed design or other services as referred to in section 393J unless they are an insured person under a professional indemnity insurance contract. 2 In subsection (1) , insured person , in relation to a professional indemnity insurance contract,— a means a person who is entitled to indemnity under the contract; and b includes a person who is not a party to the contract but is specified or referred to in the contract, whether by name or otherwise, as a person to whom the benefit of the insurance cover provided by the contract extends. 3 A person who fails to comply with subsection (1) commits an offence and is liable on conviction,— a in the case of an individual, to a fine not exceeding $50,000: b in any other case, to a fine not exceeding $150,000. 393M Minimum requirements for professional indemnity insurance contracts The minimum requirements for a professional indemnity insurance contract are the following: a the contract must be a contract of insurance, within the meaning of section 6 of the Contracts of Insurance Act 2024, that provides an adequate level of indemnity for the liability under subpart 2A that could be incurred by the design consultant in the course of carrying out prescribed design or other services: b the insurer must be a licensed insurer under the Insurance (Prudential Supervision) Act 2010: c the contract must comply with the requirements of the regulations (if any). 393N Regulations relating to minimum requirements For the purposes of section 393M , regulations may, without limitation, do any of the following: a prescribe requirements relating to when the level of indemnity under the contract is adequate for the purposes of section 393M(a) : b specify the terms and conditions upon which insurance is to be held, and any circumstances in which insurance cover may be excluded or modified: c specify the minimum terms and conditions that a professional indemnity insurance contract must satisfy. 393O Implied terms 1 A professional indemnity insurance contract is treated as containing any provision that is implied into it by the regulations. 2 A provision of a professional indemnity insurance contract has no effect to the extent that it contravenes, or is inconsistent with, any term implied into it by the regulations. 393P Other offences for purpose of this subpart 1 A design consultant must, before providing prescribed design or other services to a person, disclose details of their professional indemnity insurance contract to that person in accordance with the requirements for disclosure that are prescribed in the regulations. 2 A design consultant who fails to comply with subsection (1) commits an infringement offence and is liable to a fine not exceeding $2,000. 3 The regulations may prescribe matters, including— a the types of information that a design consultant must disclose (for example, information relating to evidence of compliance with the requirements of this subpart); and b to whom the information must be provided; and c how the information must be provided. 4 In making a disclosure about a professional indemnity insurance contract, a design consultant must not make a false or misleading statement knowing that it is false or misleading in a material particular. 5 A person who fails to comply with subsection (4) commits an offence and is liable on conviction,— a in the case of an individual, to a fine not exceeding $50,000: b in the case of a body corporate, to a fine not exceeding $150,000. 393Q This subpart may be disapplied 1 The Governor-General may, by Order in Council made on the recommendation of the Minister, do all or any of the following: a disapply all or any provisions of this subpart to any person, subject matter, or circumstance for periods not exceeding 2 years: b extend any period of disapplication by 1 or more further periods not exceeding 2 years each: c specify the terms or conditions (if any) of the disapplication. 2 The Minister may make the recommendation only if the Minister is satisfied that— a circumstances have occurred, or are reasonably expected to occur, that materially affect the availability or affordability (or both) of professional indemnity insurance contracts for some or all design consultants or prescribed design or other services; and Examples of circumstances The insolvency or withdrawal of professional indemnity insurance providers from the New Zealand market. A substantial increase in, or change to, premiums, excesses, exclusions, or other policy terms that materially reduces effective cover under professional indemnity insurance contracts. Other events that materially disrupt insurance markets, including natural disasters, reinsurance market failures, or global financial shocks. b the circumstances have, or are likely to have, an adverse effect on the ability to commence, continue, or complete building project work (for example, because design consultants cannot obtain the insurance required under this subpart); and c the Order in Council is not broader than is reasonably necessary to address the matters that gave rise to the order. 3 An Order in Council made under this section is secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 2C Home warranties 393R Purpose of this subpart 1 This subpart protects homeowners, in relation to certain residential building work, by requiring home warranties that provide an adequate level of cover for building work that is defective to be in effect. 2 See subpart 2D , which requires a provider of home warranties to be registered. 393S Application of this subpart 1 This subpart applies to a residential building project that involves restricted building work that requires a building consent if— a the project is for building work in relation to 1 or more residential units in, or consisting of, a new house or a new small-to-medium apartment building; or b the project is for renovation work in relation to 1 or more residential units in, or consisting of, an existing house or an existing small-to-medium apartment building and the estimated value of the project is not less than $100,000 (including goods and services tax). 2 However, this subpart does not apply to building work of a class that is, or in the circumstances that are, prescribed by the regulations for the purposes of this subsection. 3 For the purposes of subsection (1)(b) ,— a the estimated value of the project must be calculated in the manner specified in the regulations (if any); and b those regulations may provide for any amounts to be included or disregarded (in whole or in part). 393T Requirement to have home warranty 1 A home warranty is required for a residential building project to which this subpart applies. 2 See section 393Y , which provides for a building consent authority— a to consider, before granting a building consent, whether a home warranty is required and, if so, whether it has sufficient evidence of the home warranty; and b if it does not have sufficient evidence, to issue a certificate to the effect that, until it has sufficient evidence of a home warranty,— i no building work may proceed; or ii building work may proceed, but only to the extent stated in the certificate. 393U Interpretation in this subpart In this subpart, unless the context otherwise requires,— building work means work that is either of the following: a for, or in connection with, the construction, alteration, demolition, or removal of a building: b on an allotment that is likely to affect the extent to which an existing building on that allotment complies with the building code home warranty means a home warranty that meets the requirements of section 393V homeowner-client means the party to a residential building project who commissions the building work house means a free-standing, fully detached building consisting of a single residential unit (or a single residential unit and 1 or more residential facilities) Lloyd’s coverholder means a person that— a has been authorised by a Lloyd’s managing agent to enter into Lloyd’s products in accordance with the terms of a binding authority; and b is incorporated or registered in New Zealand Lloyd’s underwriter means an underwriting member of Lloyd’s (within the meaning of section 6 of the Insurance (Prudential Supervision) Act 2010) maximum calculated height , in relation to a building, means the vertical distance between the highest point of its roof (excluding structures such as aerials, chimneys, flagpoles, and vents) and the lowest point of the ground registered home warranty provider means a person who has been registered as a home warranty provider under section 393ZH and whose registration is not suspended and has not been revoked residential facility means a part of a building that is not a residential unit, but is a facility (for example, a corridor, foyer, garage, laundry, lift, sauna, or storage unit) whose principal or only purpose is ancillary to the use of a residential unit in the building (or 2 or more residential units in the building) residential unit means a building, or part of a building, that is so designed that it is more suitable for being lived in by a single household or family than for any other use small-to-medium apartment building means a building that— a contains 2 or more residential units or residential facilities; and b does not contain parts that are neither residential units nor residential facilities; and c has a maximum calculated height of less than 10 metres sufficient evidence means evidence that a building consent authority considers is sufficient to show that a home warranty that meets the minimum requirements of this subpart is in effect. 393V Requirements for home warranties The minimum requirements for a home warranty are the following: a the home warranty must meet minimum requirements for— i providing an adequate level of cover for all building work that is defective for a 1-year period starting from the time prescribed under the regulations; and ii providing an adequate level of cover for all building work that is defective that consists of structural defects for a 10-year period starting from the time prescribed under the regulations: b the home warranty must be a contract or other arrangement that is legally enforceable by the homeowner-client (or a subsequent owner referred to in paragraph (e) ): c a party to the contract or arrangement must be a registered home warranty provider (unless paragraph (d) applies): d if Lloyd’s underwriters are liable under the home warranty, the Lloyd’s coverholder that arranged the warranty must be a registered home warranty provider: e the benefit of the home warranty must, in accordance with the regulations, be transferable to any subsequent owner of the property to which the warranty relates during the period in which cover is provided: f in the case of an insurance-based home warranty,— i the contract for the warranty must be a contract of insurance within the meaning of section 6 of the Contracts of Insurance Act 2024; and ii the insurer must be a licensed insurer within the meaning of section 6 of the Insurance (Prudential Supervision) Act 2010: g the warranty must comply with the requirements of the regulations (if any). 393W Regulations relating to minimum requirements For the purposes of section 393V , the regulations may, without limitation, do any of the following: a prescribe requirements relating to when the level of cover under a home warranty is adequate for the purposes of section 393V(a) : b specify the terms and conditions upon which the home warranty is to be held, and any circumstances in which cover may be excluded or modified: c specify the minimum terms and conditions that a home warranty must satisfy: d for the purposes of section 393V(e) ,— i specify how the benefit of the home warranty must be transferable, including requirements that a subsequent owner must comply with (for example, a requirement to pay a reasonable fee to cover administrative costs in connection with the transfer): ii specify the effect of a transfer, including the rights and obligations of the subsequent owner under the home warranty (for example, that the subsequent owner has obligations under the warranty as if they were the homeowner-client that originally had cover under the home warranty). 393X Implied terms 1 A home warranty is treated as containing any provision that is implied into it by the regulations. 2 A provision of a home warranty has no effect to the extent that it contravenes, or is inconsistent with, any term implied into it by the regulations. 393Y Building consent authority must consider whether home warranty is in effect 1 A building consent authority must, before it grants a building consent for a residential building project,— a consider whether the residential building project is a project for which a home warranty is required under section 393T(1) ; and b if so, consider whether it has sufficient evidence of the home warranty; and c if it considers that it has sufficient evidence of the home warranty, notify each relevant person of that finding and that, accordingly, a certificate under this section will not be issued; and d if it considers that it does not have sufficient evidence of the home warranty, notify each relevant person of that finding (including its reasons) and issue a certificate, in the prescribed form, to the effect that, until it has sufficient evidence of a home warranty,— i no building work may proceed; or ii building work may proceed, but only to the extent stated in the certificate. 2 In this section and section 393Z , relevant person means the following: a the homeowner-client: b the applicant for the building consent (if the applicant is not the homeowner-client): c the territorial authority for the relevant district (if the building consent authority is not that territorial authority). 393Z Building consent authority must consider subsequent evidence of home warranty 1 This section applies if, after a building consent authority issues a certificate under section 393Y , a homeowner-client provides evidence of a home warranty to the building consent authority. 2 The building consent authority must— a consider whether it has sufficient evidence of the home warranty; and b if it considers that it has sufficient evidence of the home warranty, notify each relevant person of that finding and cancel the certificate; and c if it considers that it still does not have sufficient evidence of the home warranty, notify each relevant person of that finding (including its reasons). 393ZA Building consent authority must act in prescribed manner 1 A building consent authority must act under sections 393Y and 393Z in the manner prescribed by the regulations (if any), including in connection with— a maintaining records of decisions made under those sections; and b providing information to the territorial authority for the relevant district (if the building consent authority is not that territorial authority). 2 See sections 219(3) and 240(4) , which provide that a failure by a person to pay a fee, charge, or levy does not affect the duty of a building consent authority under section 393Y or 393Z or this section. 393ZB Process under this subpart does not affect processing applications for, or granting of, building consent 1 Sections 393Y to 393ZA do not affect sections 45 to 52 (which relate to building consents). 2 In particular, nothing in sections 393Y to 393ZA affects the time limits specified in section 48(1A). 3 See section 51(1)(b)(iv) , which requires a building consent to have attached to it a copy of any certificate issued under section 393Y . 393ZC Offence to carry on work in contravention of certificate 1 A person commits an offence if the person carries out any building work in contravention of a certificate in force under section 393Y . 2 It is a defence to a prosecution for an offence against this section if the defendant proves that the contravention of the certificate was due to— a a reasonable mistake; or b reasonable reliance on information supplied to the defendant by another person; or c the act or omission of another person, and the defendant took reasonable precautions and exercised due diligence to avoid the contravention. 3 A person who commits an offence against this section is liable on conviction,— a in the case of an individual, to a fine not exceeding $50,000: b in the case of a body corporate, to a fine not exceeding $150,000. 393ZD Offence to make false or misleading statements about home warranty products 1 A registered home warranty provider or any other person must not, in trade and in relation to a type of home warranty offered by a provider,— a knowingly make a written or an oral statement that is false or misleading in a material particular; or b knowingly make a material omission. 2 In this section, trade has the same meaning as in section 2(1) of the Fair Trading Act 1986. 3 A person who fails to comply with subsection (1) commits an offence and is liable on conviction,— a in the case of an individual, to a fine not exceeding $50,000: b in the case of a body corporate, to a fine not exceeding $150,000. 393ZE This subpart may be disapplied 1 The Governor-General may, by Order in Council made on the recommendation of the Minister, do all or any of the following: a disapply all or any provisions of this subpart to any person, subject matter, or circumstance for periods not exceeding 2 years: b extend any period of disapplication by 1 or more further periods not exceeding 2 years each: c specify the terms or conditions (if any) of the disapplication. 2 The Minister may make a recommendation only if the Minister is satisfied that— a circumstances have occurred, or are reasonably expected to occur, that materially affect the availability or affordability (or both) of home warranty products; and Examples of circumstances The insolvency or withdrawal of home warranty providers from the New Zealand market. A substantial increase in, or change to, premiums, excesses, exclusions, or other policy terms that materially reduces effective cover under home warranties. Other events that materially disrupt warranty or insurance markets, including natural disasters, reinsurance market failures, or global financial shocks. b the circumstances have, or are likely to have, an adverse effect on the ability to commence, continue, or complete residential building work (for example, because homeowner-clients cannot obtain the home warranties required under this subpart); and c the Order in Council is not broader than is reasonably necessary to address the matters that gave rise to the order. 3 An Order in Council made under this section is secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 47 New subpart 2D of Part 5 inserted After section 393, insert: 2D Home warranty providers: registration and duties 393ZF Provider of home warranties must be registered 1 A person that carries on a business of providing home warranties for the purposes of subpart 2C must be registered under this subpart (whether or not the business is the provider’s only business or the provider’s principal business). 2 For the purposes of this subpart,— arranging , in relation to home warranties, includes negotiating, soliciting, or procuring home warranties Lloyd’s coverholder means a person that— a has been authorised by a Lloyd’s managing agent to enter into Lloyd’s products in accordance with the terms of a binding authority; and b is incorporated or registered in New Zealand Lloyd’s underwriter means an underwriting member of Lloyd’s (within the meaning of section 6 of the Insurance (Prudential Supervision) Act 2010) providing , in relation to home warranties, means— a entering into home warranties with homeowner-clients; or b arranging home warranties, in the circumstances prescribed in the regulations, on behalf of a person that carries on a business of entering into home warranties with homeowner-clients. 3 Subsection (1) does not apply to Lloyd’s underwriters that are liable under a home warranty, but does apply to a Lloyd’s coverholder that arranges a home warranty. 4 See also section 393V , which requires a registered home warranty provider to be— a a party to a home warranty required under subpart 2C ; or b a Lloyd’s coverholder that arranges a home warranty required under that subpart. 393ZG Offence to act as home warranty provider if not registered A person who fails to comply with section 393ZF(1) commits an offence and is liable on conviction,— a in the case of an individual, to a fine not exceeding $300,000: b in the case of a body corporate, to a fine not exceeding $1,500,000. 393ZH Chief executive may enter person’s name in register of home warranty providers The chief executive must, on the application of a person made in accordance with section 393ZJ , enter the person’s name in the register of home warranty providers kept under section 273(1)(h) if the chief executive is satisfied that the criteria set out in section 393ZI are met. 393ZI Criteria for registration 1 For the purposes of section 393ZH , the chief executive must be satisfied that— a the person (or a person prescribed by the regulations) has the financial ability and structures in place to honour claims under home warranties for at least a 10-year period after the contracts are entered into; and b the person meets the criteria and standards for registration that are set out in the regulations. 2 For the purposes of subsection (1)(b) , the regulations may prescribe any requirements relating to the business, operation, or management of the person, including actuarial, audit, governance, and reporting requirements. 393ZJ Application for registration An application for registration under section 393ZH must— a be made in writing to the chief executive; and b be given in the manner prescribed by the regulations (if any); and c contain the information prescribed by the regulations (if any); and d be accompanied by the fee prescribed by the regulations (if any). 393ZK Chief executive must give notice of whether applicant is registered The chief executive must, as soon as practicable after receiving an application for registration that complies with section 393ZJ ,— a give the applicant written notice of whether the applicant is registered under section 393ZH ; and b if the chief executive is not satisfied that the criteria set out in section 393ZI are met, state the reasons for not being satisfied. 393ZL Chief executive may assess whether person continues to meet criteria for registration 1 The chief executive may assess, if they become aware of a material change in circumstances or at any other time, whether a person whose name is entered in the register of home warranty providers continues to meet the criteria for registration specified in section 393ZI . 2 A person who continues to meet those criteria is entitled to the continuation of its registration, subject to section 393ZM . 393ZM Consequences of failure to meet criteria for registration 1 This section applies if, after making an assessment under section 393ZL , the chief executive determines that a person no longer meets the criteria for registration. 2 The chief executive must— a suspend the person’s registration until the person satisfies the chief executive that the person meets those criteria; and b record the suspension in the register of home warranty providers. 3 If the person does not so satisfy the chief executive within 12 months after the suspension, or any further period that the chief executive may determine, the chief executive must— a revoke the person’s registration; and b record the revocation in the register of home warranty providers. 393ZN Effect of suspension or revocation 1 A home warranty provider is not registered, for the purposes of this Part, for the period for which its registration is suspended under section 393ZM(2) . 2 Despite subsection (1) , the chief executive may authorise a provider to perform limited functions as a home warranty provider during the period of suspension if the chief executive is satisfied that doing so is necessary in the public interest. 3 An authority given under subsection (2) may— a be subject to any conditions that the chief executive thinks fit; and b be revoked by the chief executive at any time. 4 This section does not affect a home warranty that was entered into, or arranged, by the provider before its registration was suspended or revoked. 393ZO Provider must provide information to chief executive or other persons 1 A registered home warranty provider must make available to the chief executive, or a person or class of persons prescribed by the regulations, the information that must be made available under this section by the regulations. 2 The information must be made available— a at the times prescribed by the regulations or on the occurrence of the events prescribed by the regulations; and b otherwise in the manner prescribed by the regulations. 3 A registered home warranty provider who fails to comply with subsection (1) commits an infringement offence and is liable to a fine not exceeding $20,000. 393ZP Provider must publish information about home warranty provisions 1 A registered home warranty provider must meet any requirements that are set out in the regulations to publish prominently on its Internet site, in plain language, certain terms and conditions of, and exclusions from, its home warranty products. 2 A registered home warranty provider that fails to comply with subsection (1) commits an infringement offence and is liable to a fine not exceeding $5,000. 393ZQ Offence to make false or misleading statements 1 A registered home warranty provider or an applicant for registration must not, in any communication or document required to be made or given under this subpart,— a knowingly make a written or an oral statement that is false or misleading in a material particular; or b knowingly make a material omission. 2 A person that fails to comply with subsection (1) commits an offence and is liable on conviction,— a in the case of an individual, to a fine not exceeding $50,000: b in the case of a body corporate, to a fine not exceeding $150,000. 48 Section 402 amended (Regulations: general) Replace section 402(1)(a) with: a prescribing the rate of the levy to be paid under section 53, which must be made up of the following 2 parts: i 1 part for the general component; and ii 1 part for the building research component. After section 402(1)(xg), insert: xh prescribing classes of persons for the purposes of the definition of design consultant in section 393K ( see subsection (2A) ): After section 402(2), insert: 2A The Minister may recommend regulations for the purposes of subsection (1)(xh) only if the Minister is satisfied that a person of a class prescribed under the regulations is a person who contributes, through advice or other services, to the design or compliance of building work (for example, a person who prepares plans and specifications for building work or who gives advice on the compliance of building work with the building code). 49 Section 405 amended (Incorporation of material by reference into certain instruments, solutions, and methods) After section 405(4)(c), insert: ca any notice setting performance criteria made under section 47A(3) : 50 Schedule 1AA amended In Schedule 1AA,— a insert the Part set out in the Schedule of this Act as the last Part; and b make all necessary consequential amendments. 51 Schedule 1A amended In Schedule 1A, replace clause 1(b) with: b it is new (that is, it is wholly new and may include an off-site constructed dwelling, but it is not an addition or alteration to existing building work or an existing building): 52 Repeal of Building Research Levy Act 1969 The Building Research Levy Act 1969 (1969 No 23) is repealed. 53 Principal Act Section 54 amends the Arbitration Act 1996. 54 Section 12 amended (Powers of arbitral tribunal in deciding disputes) After section 12(2), insert: 3 This section is subject to subpart 2A of Part 5 of the Building Act 2004 (which relates to proportionate liability). 55 Principal Act Sections 56 to 61 amend the Construction Contracts Act 2002. 56 Section 28 amended (How to initiate adjudication) In section 28(1)(b)(i) and (2)(f), after section 30(a) , insert or (aa) . 57 Section 30 amended (Claimant may seek determination of liability of owner who is not respondent) Replace section 30(a) with: a a determination under section 50 that an owner who is not a respondent is jointly and severally liable with the respondent to make a payment to the claimant (provided that subpart 2A of Part 5 of the Building Act 2004 (which relates to proportionate liability) does not apply): aa a determination under section 50 that an owner who is not a respondent has proportionate liability under subpart 2A of Part 5 of the Building Act 2004 if that subpart applies: 58 Section 32 amended (Owner who is not respondent is party to adjudication proceedings) In section 32(1)(a)(i), after section 30(a) , insert or (aa) . 59 Section 45 amended (Adjudicator’s determination: matters to be considered) In section 45(a), after this Act , insert and subpart 2A of Part 5 of the Building Act 2004 . 60 Section 50 amended (Determination of liability of owner who is not respondent and approval of charging order over construction site owned by that owner) In section 50(1)(b)(i), after section 30(a) , insert or (aa) . Replace section 50(2)(a) with: a determine— i that the owner is jointly and severally liable, with the respondent, to pay (whether in whole or in part) the amount claimed in the adjudication (provided that subpart 2A of Part 5 of the Building Act 2004 does not apply); or ii that the owner is proportionately liable under subpart 2A of Part 5 of the Building Act 2004 if that subpart applies; and 61 Section 71A amended (Owner who is not respondent may apply to District Court for review of adjudicator’s determination) In section 71A(1)(a), replace an adjudicator’s determination that the owner is jointly and severally liable with the respondent to make with an adjudicator’s determination under Part 3 about making . 62 Principal Act Section 63 amends the Law Reform Act 1936. 63 Section 17 amended (Proceedings against, and contribution between, joint and several tortfeasors) After section 17(4), insert: 4A This section does not apply if subpart 2A of Part 5 of the Building Act 2004 (which relates to proportionate liability) applies. 64 Principal Act Sections 65 and 66 amend the Plumbers, Gasfitters, and Drainlayers Act 2006. 65 Section 27A amended (Each registered person and provisional licence holder to provide record of work in respect of prescribed sanitary plumbing or drainlaying) After section 27A(2), insert: 2A However, in the case of a record of work for an off-site constructed dwelling (within the meaning of section 7(1) of the Building Act 2004), the person must give the record to the off-site dwelling constructor (within the meaning of section 7(1) of the Building Act 2004). In section 27A(3), after subsection (2) , insert or (2A) . 66 Section 89 amended (Disciplinary offence) In section 89(fa), after owner of the dwelling , insert or, in the case of an off-site constructed dwelling (within the meaning of section 7(1) of the Building Act 2004), the off-site dwelling constructor (within the meaning of section 7(1) of the Building Act 2004) . 67 Principal order Sections 68 and 69 amend the Building (Definition of Restricted Building Work) Order 2011. 68 Clause 5 amended (Certain building work relating to primary structure or external moisture-management systems of residential buildings to be restricted building work) In clause 5(2)(a)(i), after small stand-alone dwelling , insert and an off-site constructed dwelling . In clause 5(2)(a)(ii), after small stand-alone dwelling , insert and an off-site constructed dwelling . 69 Clause 6 amended (Certain design work relating to primary structure or external moisture-management systems of residential buildings to be restricted building work) In clause 6(2)(a), after small stand-alone dwelling , insert and an off-site constructed dwelling . In clause 6(2)(b), after small stand-alone dwelling , insert and an off-site constructed dwelling . 70 Principal regulations Sections 71 to 77 amend the Building (Forms) Regulations 2004. 71 Schedule 2, form 2 amended In Schedule 2, form 2, under the heading The project , after Description of the building work: , insert: Does the building work involve the installation of a solar power generating array? †Yes/†No †If Yes, state its generating capacity and provide supporting documents: In Schedule 2, form 2, under the heading †Attachments , after The following documents are attached to this application: , insert: †Documents to support the generating capacity of the solar power generating array 72 Schedule 2, form 2AA amended In Schedule 2, form 2AA, under the heading Attachments , after include floor plans) , insert If applicable, also include any design plans for an off-site constructed dwelling built before this application was made . 73 Schedule 2, form 2A amended In Schedule 2, form 2A, under the heading The building , after Street address of building , insert or (if applicable) location where the off-site constructed dwelling construction took place . In Schedule 2, form 2A, after The owner , insert or (if applicable) the off-site dwelling constructor . 74 Schedule 2, form 3A amended In Schedule 2, form 3A, in the item headed Note: , after relevant tradespeople , insert and (if applicable) the off-site dwelling constructor . 75 Schedule 2, form 6A amended In Schedule 2, form 6A, under the heading The building , after Street address of building , insert or (if applicable) location where the off-site constructed dwelling construction took place . In Schedule 2, form 6A, under the heading The project , insert: *The project is for an off-site constructed dwelling (within the meaning of section 7(1) of the Building Act 2004) In Schedule 2, form 6A, after The owner , insert or (if applicable) the off-site dwelling constructor . 76 Schedule 2, form 8 amended In Schedule 2, form 8, under the heading The building , after Street address of building , insert or (if applicable) location where off-site constructed dwelling construction took place . In Schedule 2, form 8, after The owner , insert or (if applicable) the off-site dwelling constructor . In Schedule 2, form 8, under the heading The owner , after Name of owner , insert or (if applicable) off-site dwelling constructor . 77 Schedule 2, form 9 amended In Schedule 2, form 9, under the heading The building , after Street address of building , insert or (if applicable) location where off-site constructed dwelling construction took place . In Schedule 2, form 9, after The owner , insert or (if applicable) the off-site dwelling constructor . In Schedule 2, form 9, under the heading The owner , after Name of owner , insert or (if applicable) off-site dwelling constructor . 78 Principal regulations Section 79 amends the Building (Infringement Offences, Fees, and Forms) Regulations 2007. 79 Schedule 1 amended In Schedule 1, after the item relating to section 154 of the Building Act 2004, insert: The following table is small in size and has 3 columns. This table amends Schedule 1 of the Building (Infringement Offences, Fees, and Forms) Regulations 2007 and should be read with that table to provide understanding of the context. s 393P(2) Failure of design consultant to disclose details of their professional indemnity insurance contracts as required by regulations 500 s 393ZO(3) Failure of registered home warranty provider to meet disclosure requirements prescribed in regulations 5,000 s 393ZP(2) Failure of registered home warranty provider to publish information about home warranty provisions 1,500 80 Principal regulations Sections 81 to 84 amend the Building (Residential Consumer Rights and Remedies) Regulations 2014. 81 Regulation 6 amended (Prescribed content for residential building contracts for prescribed minimum price or more) After regulation 6(2)(c), insert: ca in the case of an off-site constructed dwelling, the address of the place where it will be constructed; and 82 Regulation 8 amended (Prescribed clauses deemed to be included in incomplete written residential building contracts for prescribed minimum price or more) In regulation 8(3), after modular component , insert or the construction of an off-site constructed dwelling . 83 Schedule 1, form amended In Schedule 1, form, under the heading Key contact person (if identified at the time when this information is provided) , after the item relating to [Postal] address of manufacturing site , insert: Address of the manufacturing site, if the subject of the residential building contract is the construction of an off-site constructed dwelling: 84 Schedule 2 amended In Schedule 2, under the heading About this checklist , after modular component manufacturer. , insert If the building work is or includes the construction of an off-site constructed dwelling, the building contractor will be the off-site dwelling constructor. 85 Principal regulations Sections 86 and 87 amend the Electricity (Safety) Regulations 2010. 86 Regulation 74E amended (What happens to certificates of compliance) In regulation 74E(2A)(a), after readily available , insert , or, in the case of an off-site constructed dwelling (within the meaning of section 7(1) of the Building Act 2004), the off-site dwelling constructor (within the meaning of section 7(1) of the Building Act 2004) . In regulation 74E(2A)(b), before the owner , insert unless the dwelling is an off-site constructed dwelling, . 87 Regulation 74G amended (What happens to electrical safety certificates) In regulation 74G(1)(a)(ii), after is located , insert or, if the dwelling is an off-site constructed dwelling, to the off-site dwelling constructor . 88 Principal regulations Sections 89 and 90 amend the Gas (Safety and Measurement) Regulations 2010. 89 Regulation 52G amended (What happens to certificates of compliance) In regulation 52G(2A)(a), after readily available , insert , or, in the case of an off-site constructed dwelling (within the meaning of section 7(1) of the Building Act 2004), the off-site dwelling constructor (within the meaning of section 7(1) of the Building Act 2004) . In regulation 52G(2A)(b), before the owner , insert unless the dwelling is an off-site constructed dwelling, . 90 Regulation 52I amended (What happens to gas safety certificates) In regulation 52I(1)(a), after is located , insert or, in the case of an off-site constructed dwelling (within the meaning of section 7(1) of the Building Act 2004), the off-site dwelling constructor (within the meaning of section 7(1) of the Building Act 2004) who requested the gasfitting work in each place. 91 Principal regulations Sections 92 and 93 amend the Plumbers, Gasfitters, and Drainlayers Regulations 2010. 92 Regulation 10 amended (Prescribed sanitary plumbing or drainlaying) In regulation 10, after small stand-alone dwelling , insert , including work carried out or supervised in connection with an off-site constructed dwelling (within the meaning of section 7(1) of the Building Act 2004), . 93 Schedule, form amended In the Schedule, form, replace the heading Owner details with Owner or (if applicable) off-site dwelling constructor details . In the Schedule, form, under the heading Building details , after Street address , insert or (if applicable) location where off-site dwelling construction took place . New Part 6 inserted into Schedule 1AA 6 Provisions relating to Building Amendment Act 2026 Transitional arrangements for proportionate liability and related matters 18 Proportionate liability applies only to building work consented or started after commencement Subpart 2A of Part 5 applies only in relation to— a building work for which a building consent was issued on or after that subpart comes into force; or b building work that is started on or after that subpart comes into force (in a case where a building consent is not issued for the work). 19 Duty for home warranty provider applies only on and after home warranty requirements come into force Sections 393ZF and 393ZG apply only on and after subpart 2C of Part 5 comes into force. Guidance note Subpart 2D of Part 5 comes into force 3 months after Royal assent of the Building Amendment Act 2026 to give an opportunity for providers of home warranties to become registered before the requirements to have a home warranty come into force (on the first anniversary of Royal assent of that Act). This transitional provision ensures that the duty to be registered (and the associated offence) apply only on and after those requirements come into force. Transitional arrangements for off-site constructed small stand-alone dwellings 20 Provisions relating to off-site constructed small stand-alone dwellings apply retrospectively 1 The provisions listed in subclause (2) apply on and after 15 January 2026 in respect of any off-site dwelling constructor and any off-site constructed dwelling for which construction began on or after that date. 2 The provisions are sections 4(2) to (5) , 7 , 8 , 9(2) , 11 , 12 , 14 , 19 , 20 , 41 to 44 , 51 , 64 to 69 , 72 to 77 , and 80 to 93 of the Building Amendment Act 2026 . Transitional arrangements for repeal of Building Research Levy Act 1969 21 Transitional research levy 1 This clause applies if— a a building consent is granted before the research levy repeal date; and b an application for an amendment to the building consent is granted on or after the research levy repeal date; and c the granting of the application results in the estimated value of the building work increasing; and d the new estimated value of the building work equals or exceeds the prescribed minimum estimated value (if any) that applies under section 55. 2 If this clause applies, the applicant is liable to pay a transitional research levy to the chief executive calculated in accordance with whichever of subclauses (3) and (4) applies. 3 If a levy under the Building Research Levy Act 1969 was payable, the transitional research levy is calculated at the rate of $1 plus GST (if any) for every $1,000 (or part of $1,000) of the amount by which the new estimated value of the building work (inclusive of GST) exceeds the applicable amount under section 5(1)(a) or (b) of that Act. 4 If a levy under the Building Research Levy Act 1969 was not payable because the applicable amount under section 5(1)(a) or (b) of that Act was less than $20,000, the transitional research levy is calculated at the rate of $1 plus GST (if any) for every $1,000 (or part of $1,000) of the new estimated value of the building work (inclusive of GST). 5 The chief executive must credit all transitional research levy payments to the building research component. 6 Sections 53 to 66, as applicable and with any necessary modifications, apply to a transitional research levy. 7 In this clause and in clause 22 ,— GST means goods and services tax research levy repeal date means the date that the Building Research Levy Act 1969 is repealed. 22 Subsequent increase in estimated value of work 1 This clause applies if— a an applicant for an amendment to a building consent was liable to pay a transitional research levy under clause 21 ; and b a new application for an amendment to the building consent is granted; and c the granting of the application results in the estimated value of the building work increasing. 2 If this clause applies, the applicant is liable to pay a further transitional research levy to the chief executive calculated at the rate of $1 plus GST (if any) for every $1,000 (or part of $1,000) of the increase to the estimated value of the building work (inclusive of GST).