Building products such as cladding systems, external doors, plasterboard, and windows from overseas are now more accessible to Kiwi construction businesses.
According to Building and Construction Minister Chris Penk, the government has given the green light for more overseas building products, which will help construction companies build faster and more affordably.
The government has released its Building Product Specifications, which outline specifications and standards for building products that are already known and used overseas, and which can comply with New Zealand’s Building Code.
The Building Product Specifications document is aimed at:
Providing more choices of building products for use
Incorporating a wider range of New Zealand and international standards into building compliance pathways
Making it easier and faster to add, update, and modify building product standards in the Building Code system.
Penk hopes that this initiative will end the "costly monopolies" on selected products.
Reducing building costs by thousands of dollars
According to Penk, the cost of building a house in New Zealand is "frankly outrageous."
"These changes have the potential to reduce total building costs by thousands of dollars when building a home,"
"It is 50% more expensive to build a standalone home in New Zealand than in Australia … For example, New Zealand has some of the most expensive plasterboard in the world. Kiwis pay around 38 per cent more than Australia for plasterboard, 47 per cent more than the UK, and 67 per cent more than the US for the same products,”
“And 97 per cent of the plasterboard that we must currently use is made by one established company. You may recall that in 2022, when that company ran into difficulty, prices for plasterboard soared, and some builders were reported to pay six times the normal amount so they could finish the job.”
Penk also states that there were thousands of high-quality, high-performing products that had been tested against international standards. However, these products were not adopted locally because they had not been tested against New Zealand standards.
Helping Kiwis into homes faster
Speaking more about the Building Product Specifications, Penk notes that the first version is a starting point, and that the government will update it with other initiatives aimed at streamlining the construction of homes and buildings.
“Today we are releasing the proposed first version of this document, which contains specifications and standards for products that we already know and use, such as windows, plasterboard and cladding.”
“Designers will be able to use overseas products that comply with any one of these standards and specifications to show the building work meets overall Building Code requirements.”
“We will be rolling out further updates to this document over time, as well as developing other pathways for recognising overseas products … Later this year, additional pathways will go live, enabling more high-quality building products to be used, including over 200,000 plumbing products through the Australian Watermark scheme," Penk said.
The document will be a crucial point of reference for all parties involved in the building process, according to Penk.
“We think there’ll be a lot of interest in the changes - from councils who will be using the Building Product Specifications when assessing compliance - to designers, builders and developers keen to understand what other options are out there, and I’d like to encourage everyone to have their say,” he said.
Prime Minister Christopher Luxon said that the Building Product Specification will bring some healthy competition to the industry and subsequently reduce the cost of living.
"We want to level the playing field by increasing competition for high-quality building products, and in turn, lower prices for builders, which leads to lowering the cost of living and making houses more affordable for Kiwis."
Key takeaway
As builders leverage new products for their projects, the opportunity to expand and increase their project capacity appears promising. However, more projects also come with higher risks, and builders should take proactive steps to secure their projects, giving them peace of mind in any scenario.
Working with a broker who can tailor the right insurance covers will help builders take on more jobs confidently.
Bonded NZ helps builders and contractors find the best insurance, warranties, and surety bonds that keep their best interests in mind. Whether it's a big or small project, our cost-effective options help them secure their projects at every angle.
For more information about our services, contact our team today.