The Government has now passed the Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill, following its promise to enhance competition in the construction industry through providing access to a broader range of building products.

The Honourable Chris Penk,  Building and Construction Minister, said the legislation was expected to make up to 250,000 products available to New Zealanders this year, with more than 120,000 of those being essential products - including plasterboard, cladding, and insulation expected to be available by July 2025 [1].

What will the changes do? 

The Bill will amend the Building Act 2004 and will provide another pathway to compliance in New Zealand for products certified in trusted overseas jurisdictions. To facilitate this, the amendments provide for:  

• Recognition of building product/methods or groups of products or methods certified by an overseas product certification scheme to confirm compliance with the building code or for inclusion in any acceptable solution or verification method. 
• Recognition of overseas standards and standards certification schemes.
• Building Consent Authorities to accept the use of products that comply with those specified overseas standards equivalent to or higher than those in New Zealand, and will not be liable for the products manufactured in accordance with the standard, or certified as meeting the standard. 

Regulations are set to be developed later this year, which will allow the Minister for Building and Construction to issue a notice recognising groups of overseas product standards and certification schemes for use in New Zealand. While the process for approval is not yet clear, the Building Act 2004 currently allows for advice to be provided by the Building Advisory Panel. This panel is made up of industry participants across government, industry bodies and product suppliers. 

Benefits of the changes

The anticipated benefits of the changes include: 

• overseas suppliers will have the confidence that eligible products can be used in New Zealand without the time or cost involved in testing or certification;  
• New Zealand manufacturers and suppliers may test products against recognised international standards, potentially easing access to overseas markets; 
• manufacturers and suppliers can reference international standards and certification schemes in their disclosures under Building (Building Product Information Requirements) Regulations 2022;
• an increased confidence by owners, designers and builders using unfamiliar products; 
• access to a greater supply of products; 
• where more products are available, it is hoped more choice will lead to an increase in competition within the construction industry; 
• a greater range of products will also assist with market resilience against any shortages, such as the gib shortage of 2022. This is complemented by the ability to swap comparable products as a minor amendment, meaning shortages can be more easily managed, and changes made more quickly without impacting works; and
• access to a greater range may lead to an increased innovation in the New Zealand construction industry.  

Considerations

While there are a number of expected benefits, there are also several issues that warrant consideration: 

• New Zealand's unique building practices differ from other jurisdictions. For example, our use of timber framing contrasts with the increased use of steel and concrete elsewhere, meaning products may perform differently;
• the coastal environment and seismic activity risk require caution when using products from countries where these are not issues;
• the challenges in finding contractors willing to work with unfamiliar products;
• designers may be less inclined to specify unfamiliar products; 
• Council inspections may also be more time-consuming where new products are used, especially for high-risk elements like cladding, joinery, or structure; and
• pursuing warranty claims, obtaining technical support, or components may be more difficult when the manufacturer and supplier are overseas without a significant presence in New Zealand.

Prospective suppliers

Any manufacturers or suppliers will need to ensure that the products are suitable for the New Zealand conditions, practices and legislation. Acceptance of a product under this scheme will not absolve a supplier or manufacturer of any claims for defective or non-compliant products or breaches of consumer legislation such as the Fair Trading Act 1986, or the Consumer Guarantees Act 1993. 

Products being sold in New Zealand will need to comply with the Building (Building Product Information Requirements) Regulations 2022.

Summary 

The Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill is set to make a real change in the availability of products in New Zealand's construction industry. By opening the market to a wider range of international building products, the legislation aims to foster competition by providing more options for builders and homeowners. The availability of more products may also drive innovation. However, it is essential to proceed with caution, ensuring that all imported products can withstand New Zealand's unique environmental conditions and gain uptake within the industry. 

With careful implementation and ongoing collaboration among industry stakeholders, these reforms have the potential to enhance the quality, affordability, and resilience of buildings across the country. 

Footnote

[1] Press release dated 3 April 2025 (https://www.beehive.govt.nz/release/going-growth-more-affordable-building-products).