Rebecca Richter, Lawyer, Ford Sumner Lawyers
New Zealand’s construction sector is undergoing a significant regulatory update that will impact all homeowners, contractors, architects and insurers. The Building and Construction (Small Stand-alone Dwellings) Amendment Bill (the Bill) aims to streamline the process of building small stand-alone dwellings, otherwise known as granny flats.
If you’re a residential builder, subcontractor, or trades business, here’s why this Bill could be a practical boost to your pipeline and your bottom line.
What are the benefits?
Reduced Red Tape
The Bill proposes that granny flats may be built without obtaining a building consent, provided that the granny flat meets several requirements set out in the Bill. This means that for straightforward projects, you could spend less time stuck waiting for council consent and more time on the tools — or better yet, lining up your next job.
Faster consenting means faster site starts, fewer delays, and less idle time for your crew.
More Work to Become Available
The Bill will give architects and contractors the ability to design and build granny flats much more quickly and in greater numbers, as they will no longer have to wait for consents to be approved. This could potentially lead to more work becoming available.
Room for Innovation
If you’re in the prefabrication game, this Bill could be another boost. Since the process for designing and building granny flats will become more cost-efficient and streamlined, contractors will be able to offer pre-approved, modular small homes (e.g., factory-built cabins or tiny homes) that can be delivered and installed faster, with fewer consenting headaches for each site.
This could give smart contractors a competitive edge, especially in regions crying out for fast, cost-effective housing solutions.
With more responsibility comes more accountability
Despite its benefits, the Bill introduces new areas of risk. Without the approval of a consenting authority, contractors will need to be more diligent in building granny flats, as they will have greater liability for ensuring that the dwellings meet the building code and are safe to inhabit.
Under the Bill, granny flats are subject to a range of strict requirements in order to be exempt from building consents. Contractors must ensure that any granny flats they build meet those requirements or risk losing the exemption.
Concluding comments
The Building and Construction (Small Stand-alone Dwellings) Amendment Bill is a positive development which will allow homeowners and contractors to build granny flats faster, in greater numbers and at lower costs.
Whether you’re a one-man-band builder, a growing construction firm, or a subcontractor in plumbing, electrical, or finishing trades—simpler consenting for small homes means fewer delays, a bigger market, and more work flowing your way.
But with new freedoms come new risks. Be ready to seize the opportunity, but keep your standards high, your contracts clear, and your clients informed.
If you would like further or more specific advice on construction related issues, or any other legal issue, get in touch with Ford Sumner and its division of Tradie Law for help at 04 910 3200 or email helpdesk@tradielaw.co.nz.