The staggering cost of delays in New Zealand's building consent system has been exposed through new annual data.
New data released by the Ministry of Business, Innovation and Employment (MBIE) reveals that two-thirds of building applications required additional information requests, adding an average of nearly 12 extra days to processing times. This delay can cost around $4,000 per dwelling due to lost productivity time for builders and businesses. The issue affects thousands of people, including builders, businesses, and families waiting for their homes to be completed.
Building and Construction Minister Chris Penk directed building consent authorities to provide quarterly data last year in a bid to improve transparency. The new information has prompted the government to push ahead with significant reforms to speed up the process. In the coming months, key initiatives will be finalised, including streamlining inspections, allowing trusted builders to sign-off their own work, and restructuring building consent authorities. A more balanced approach to liability for defective work is also being considered.
The full annual data for 2024 can be found on the MBIE website at https://www.mbie.govt.nz/building-and-energy/building/building-system-insights-programme/building-consent-system-performance-monitoring