Rebecca Richter, Lawyer, Ford Sumner Lawyers.
New Zealand’s construction sector is undergoing a significant regulatory update that will impact all contractors, suppliers and manufacturers, including those in the flooring industry. The Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill (the Bill) aims to streamline the use of overseas building products and ensure they meet New Zealand’s building code. Those in the flooring industry should understand how this legislation affects material choices and compliance.
What Is the Purpose of the Bill?
This Bill was introduced in response to ongoing issues with material shortages and delays, particularly during and after the COVID-19 pandemic. Many contractors had to source alternative products from overseas, only to encounter red tape when proving compliance with the New Zealand Building Code.
What are the benefits?
Greater Flexibility and Confidence with Imported Flooring Products
The amendment will allow contractors and suppliers to rely on approved overseas certification schemes to demonstrate a product’s suitability. For example, if you use an Australian flooring system certified under an overseas scheme that’s now recognised by MBIE, it may be accepted without needing a lengthy alternative solution approval process.
Greater Supply
This will give contractors (and therefore their customers), access to a greater supply of products. This will be useful particularly if there are shortages in the markets of certain products, as it will provide contractors with alternatives to ease the impact shortages may have on its business.
Reduced Red Tape
The Bill proposes that the Government, through MBIE (Ministry of Business, Innovation and Employment), will recognise certain international standards and certifications. This will remove barriers for suppliers for ensuring compliance if the product already meets these schemes or manufacturers with testing new products.
Faster Consent Processing
Delays caused by consenting authorities asking for extra information on new or innovative overseas products could soon become a thing of the past. With the new framework, consenting authorities will have confidence that products certified under recognised overseas certification schemes are compliant with the Building Code.
Beneath the Surface
Despite its benefits, the Bill introduces new areas of risk and uncertainty that those in the flooring industry should be aware of. Namely:
- Using unfamiliar materials can be challenging. If you incorrectly use a product, or if the product is used in the wrong context, this could result in liability.
- New Zealand has unique environmental risks (UV and seismic issues to name a couple) that may not be present in other countries, so consideration should be given with use of such products, as products may perform differently. There will be a period of uncertainty.
- Pursuing an overseas supplier or manufacturer is often more difficult when the supplier or manufacturer are overseas. Often the customer comes to the flooring contractor to fix product failures, not the supplier or the manufacturer.
Concluding comments
The Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill is a positive development for flooring contractors looking for more flexible and efficient ways to source quality materials. But with new freedoms come new risks. Staying informed and working with trusted suppliers and contractors are effective tools to manage such risks.
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.