Get up to speed with law changes

Regulatory changes for the construction industry are reshaping the operating environment. We’re here to help business owners and landscapers stay up to speed when undertaking consented work

Recent months have seen developments in building regulation and related systems that have implications across the sector. This overview brings together four key updates.

GRANNY FLAT EXEMPTIONS

From 15 January 2026, new rules allow certain small, standalone dwellings – commonly referred to as granny flats – to be built without a building consent, provided strict criteria are met. The change forms part of the Building and Construction (Small Stand-alone Dwellings) Amendment Bill and associated regulations.

Under the exemption, a standalone dwelling of up to 70m² can proceed without a building consent if it meets defined requirements. These include having a simple design, complying with the Building Code, and being built or supervised by licensed building professionals. Property owners must notify their local council before work begins and again on completion.

Although a building consent may not be required, other regulatory steps remain. A Project Information Memorandum (PIM) is still necessary, and final documentation – including plans and records of work – must be provided to council. Development contributions also apply.

In parallel, the new National Environmental Standards for Detached Minor Residential Units permit minor dwellings in many residential zones without resource consent, provided specific conditions around matters such as setbacks and site coverage are satisfied.

PROPORTIONAL LIABILITY CONFIRMED FOR 2027

In December 2025, the Government confirmed that New Zealand will transition from a joint and several liability regime to a proportionate liability model, with changes expected to take effect in 2027.

Under the current joint and several framework, a claimant can recover the full cost of damages from any one liable party, regardless of that party’s share of fault. The BCA is usually the one left to cover any damages as the ‘last one standing’.

The Government believes this results in BCAs adopting risk-averse behaviour, which slows down the consent timeline. To combat this, the proportional liability system will be introduced.

Under proportional liability, each party will instead be responsible only for the portion of loss attributed to them.

In addition, professional indemnity insurance will become mandatory for all professionals involved in building design work, such as architects, designers and engineers. Stronger disciplinary penalties will apply to Licensed Building Practitioners.

OVERSEAS BUILDING PRODUCT SCHEME GAINS APPROVAL

The Building (Overseas Building Products, Standards and Certification Schemes) Amendment Bill, passed in April 2025, introduces a new pathway for recognising certain international product certifications and construction standards within New Zealand’s building system.

Central to the reform is the introduction of Building Product Specifications, effective from 28 July 2025. These specifications outline requirements relating to manufacture, testing, quality control and performance. They must be used alongside Acceptable Solutions or Verification Methods when demonstrating compliance with the Building Code.

The legislation also includes good-faith liability protections for BCAs that accept recognised overseas products when they are used as intended. Responsibility for correct specification and installation, however, remains with designers and builders

MOST BCAS MEETING INSPECTION TARGETS

Performance data released in late 2025 shows that the majority of BCAs are meeting new mandatory inspection timeframes introduced in August 2025.

Under the updated requirements, BCAs must complete at least 80% of building inspections within three working days of a request being made. The first national results indicated that 66 of 67 BCAs achieved this target.