29 November, 2015

Building standards and quality at risk – more resources needed for enforcement

The Government’s decade-long reform programme for greater accountability in the building industry is at risk because of a lack of resources to enforce quality and standards, says the Building Industry Federation.

“The desire to boost industry capacity to cope with the construction boom in Auckland should not be permitted to compromise standards and quality arising from a mixture of new entrants in the materials and product supply chain and a surge of independent cowboy builders,” the Chief Executive of the Federation, Bruce Kohn, said today.

“While Government policy emphasis has been on establishing fresh accountabilities for industry participants, and encouraging a flow of low cost materials and products from abroad, there has been inadequate resourcing for enforcement. This is exacerbated by a cumbersome penalty system seemingly inappropriate to the issues confronting the industry.

“The end result is:

• Extreme pressure on the Auckland Council to cope with consent and compliance issues

• Frustration among reputable long term materials and product suppliers at a lack of enforcement action on use of questionable Building Code-compliant low cost supplies from abroad

• Rising concern within builder organisations that the actions of the ‘cowboy’ element will taint the reputation of quality builders committed to high standards.

Kohn said that the Builder Licensing System is being placed under considerable strain as evidence mounts of complaints laid in regard to questionable work and the almost inevitable hearing delays that accompany this.

“The positive aspect is that the industry through the Construction Strategy Group and the Construction Industry Council is moving to join with the Government in a joint study to see how best these quality assurance issues can be addressed.

“Urgency attaches to this. In recent weeks we have heard of non-compliant imported low cost asphalt roofing tiles coming to market in Auckland; instances of insulation being installed and then ripped out following compliance inspections; uncompliant insulation being installed; questionable imported electrical wiring being used; reinforcing steel entering the country that does not have N.Z. standard marking and is not traceable to the point of origin; structurally important metal brackets from overseas counterfeited to be in line with product sold by a local manufacturer; sub-standard plumbing products coming to market from Asia; and unsubstantiated quality glass entering Auckland from overseas. Misleading and inadequate information is being provided to the Council.

“The unsatisfied Auckland demand for new housing is proving something of a mecca for new entrants into the industry, especially migrants and entrepreneurs motivated more by an opportunity to make a dollar than the provision of quality.

“We’re advised that corrective action on building sites sought by Council is often ignored. Efforts to affirm Code compliance of electrical wiring and exterior claddings, including that of a type which led to a major high rise fire in Melbourne some months ago, are frustrated by a lack of required evidence of compliance from the supplier and the manufacturer.

“Industry is supportive of the Government’s reforms, especially as they relate to better accountability for builders, material and product suppliers, engineers and designers. But provision of accountability in law is meaningless unless an equal commitment is made to ensuring enforcement.

“The vast majority of quality builders and material suppliers deserve a level playing field that will give consumers confidence in the industry’s ability to perform to expectations.

“Such confidence will not be sustained if suppliers with little long term commitment to the market, and often questionable ability to offer performance warranties as required under the Government’s reform programme, are able to operate outside the accountability system.

“As an organisation representative of the industry’s supply chain we have members who are importers, manufacturers, merchants and distributors of building products and materials. We support the open market philosophies of the Government.

“But we are adamant that while an open market to all global suppliers is desirable it must not in our view be accompanied by a lessening of traditional New Zealand standards of quality and structural integrity.

“Better provision of resources for enforcement would go a long way to ensuring standards and quality are not downgraded in the haste to meet Auckland’s immediate housing needs.”

ENDS

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