What is changing in building liability

The Government is planning to change how responsibility for building defects is shared. New Zealand currently uses a joint and several liability system, which means one party, often a council, can end up paying the full cost of fixing problems even if they were only partly responsible. The proposed reform would move to proportionate liability, where each party involved (designers, builders, developers and councils) pays only their share of the fault.

Protecting building owners

To make sure homeowners are not left out of pocket, the Government has proposed three safeguards. These include mandatory warranties for new homes and major renovations, compulsory professional indemnity insurance for designers such as architects and engineers, and stronger penalties for Licensed Building Practitioners who breach their obligations.

Why this matters

The aim is to make the system fairer and reduce situations where councils and ratepayers carry most of the cost for mistakes made by others. At the same time, the warranties and insurance are intended to give homeowners more confidence they will be able to recover repair costs if something goes wrong.

What this means for councils

Councils are likely to face less financial risk under the new system because they would only be responsible for their share of any building defects, rather than being pursued for the full cost. This could reduce pressure on council insurance and legal budgets and may make councils less risk-averse when processing building consents. However, councils will still need to maintain strong inspection and compliance systems, as they will continue to be one of the parties held accountable if things go wrong.

What is still uncertain

Some details still need to be worked through, including how warranties and insurance will operate in practice, how much they will cost, and how the rules will apply to larger or mixed-use buildings. The Building Amendment Bill is expected in 2026, with the new system likely to come into force after a transition period around 2027.

Earthquake‑Prone Buildings

What’s Changing

The Government has proposed updates to how earthquake‑prone buildings are identified and managed. The new approach focuses on the buildings that pose the highest risk to people and removes lower‑risk buildings and regions from the national system. It will also replace the current New Building Standard (%NBS) rating with a simpler, risk‑based method.

Timeframes and Requirements

The proposed legislation allows councils to grant longer timeframes—up to 15 years—for completing seismic strengthening and removes the requirement for fire and accessibility upgrades when owners are carrying out seismic work only.

Have Your Say

Public submissions on the Building (Earthquake‑Prone Buildings) Amendment Bill are open now and close on 16 February through the Transport and Infrastructure Select Committee.

You can have a say and make a submission on the New Zealand Parliament website.

Our submission

Click here to read our submission

Next Steps

If the changes become law, all buildings currently identified as earthquake‑prone will need to be reassessed, with councils required to issue new notices by 1 July 2027.

We are reviewing what these changes mean for our district and will provide updates to building owners and the wider community once the legislation is finalised.

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