In the New Zealand legislative system, an Act is a law passed by the Parliament. For example, the Building Act was passed by Parliament in 2004.
Regulations are provisions made under the authority of an Act. They are designed to provide information on how to implement the requirements of the Act. For example, the Building Regulations were created under the authority of the Building Act.
Codes set specific standards for specific industries. The New Zealand Building Code is contained in Schedule 1 of the Building Regulations. It sets the performance standards for all building work.
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Acts are sometimes referred to as primary legislation whereas regulations and codes are referred to as secondary legislation. This reflects the fact that the power to create the regulations stems from the primary legislation.
Adherence to Acts, regulations and codes that are part of the regulations is compulsory.
Reading
If you come across any other legal terms that you are not sure of, you can check this glossary provided by the Ministry of Justice: Glossary | New Zealand Ministry of Justice.
The New Zealand Building Act 2004 outlines the standards that must be followed during the design and construction of all buildings. Following the Act should result in high-quality buildings that are safe and durable and built in a way that is not detrimental to the surrounding environment.
Use the following link to access the Building Act.
Builders need to be familiar with the key provisions of the Building Act to ensure compliance and quality in their work. The following subjects covered by the Act will be relevant to construction managers.
Building Consent
Under the Building Act, all building work not classified as exempt requires building consent.
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The building of small structures like garages and sheds and minor renovations may not require building consent. Generally, the square metre limit for a building to be exempted from requiring building consent is around 30 square metres. However, the threshold may vary depending on regions and local council regulations. It is vital that you check with the local authority before starting a building project.
An application needs to be submitted to the Building Consent Authority (BCA)¬—generally the city council. This application will include detailed specifications that the regulatory authority will use to determine whether the project will meet all legal obligations.
Proceeding without the proper consent granted may result in personal or business fines of up to $200,000 or an order to demolish what has already been constructed.
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Assessment
You will be completing an assessment task on obtaining a building consent when you get to Assessment 02A1.
Restricted Building Work
Certain types of building work, known as Restricted Building Work (RBW), can only be carried out or supervised by Licensed Building Practitioners (LBP).
RBW applies to residential projects that require building consent. The following areas can involve RBW:
- Primary structures including piles, foundation walls, slabs, joists, beams and rafters.
- Weathertightness elements including draining cavities, cladding, opening and penetrations.
- Fire-safety design (only applies to apartments and townhouses) including emergency warning systems, escape routes, signs and fire hose reels.
Licensed Building Practitioners
A construction company carrying out RBW will need to ensure their employees are appropriately licensed. They will also need to undertake professional development to stay up to date with requirements and regulations.
The LBP scheme includes seven licensing classes based on specific roles or occupations crucial to a building's performance. These licence classes represent broad types of work that a person is competent and licensed to undertake. LBPs must not carry out or supervise Restricted Building Work outside their licensing class.
Watch
Video Title: Build It Right - restricted building work
Watch Time: 3:13
Video Summary: This video provides a quick overview of Restricted Building Work and the requirement to use LBPs.
Post Watch Task: As discussed in the video, builders wanting to become LBPs must have their competency assessed. Do some research online and find out what the process is for becoming licensed.
Implied Warranties
The Building Act protects the project owner by setting out an implied warranty for all residential building work. This warranty applies even if there is no contract and overrides any contractual provisions that specify a less stringent warranty. The implied warranty lasts 10 years from building completion.
Construction managers should be mindful of what the implied warranty covers.
- Building work must be completed competently and according to the agreed specifications.
- Suitable building materials must be used.
- The building must comply with the Building Code and other applicable, legislation.
- The completed building must be suitable for occupation.
- The building project must be completed within the specified timeframe or within a reasonable period.
Note that this implied warranty will only apply to small residential projects.
Building Warrant of Fitness (BWOF)
The Act mandates that all buildings, except for single residential dwellings, need to have a BWOF. This is an annual certificate that confirms the building is safe for tenants and visitors. BWOFs cover specific systems that are installed during construction or renovation. These might include:
- fire safety systems
- lifts
- emergency lighting
- signage.
The construction company needs to be familiar with the systems that will be included in the BWOF. They will then ensure that the construction is completed to meet the specific requirements.
Earthquake-Prone Buildings
Subpart 6A of the Act deals specifically with earthquake-prone buildings. Construction companies who are renovating or remediating earthquake-prone buildings must be aware of al legislative requirements. Builders must be proficient in earthquake-resistant construction techniques.
Building Amendment Act 2012
The Building Act has been updated by the Building Amendment Act 2012. This amendment legislation was designed to increase consumer protection. It clarified the responsibilities of stakeholders including owners, designers, builders, and consenting authorities. This is the legislation that mandates that a written building contract is required for projects worth $30,000 or over.
The Amendment Act also increased penalties for non-compliance with the Building Act and Building Code.
Use the following link to access the Building Amendment Act 2012.
The New Zealand Building Code outlines the minimum requirements for buildings to achieve. The Building Code is a performance-based system, meaning it only states how a building must perform in certain ways rather than describing or specifying how it must be designed and or built.
Note that all building projects in New Zealand, small or large, must comply with the building code
As stated earlier, the Building Code is part of the Building Regulations 1992. Click on the link to access the Building Code.
Building Code Categories and Clauses
The Building Code is divided into eight categories (labelled A-H).
Each category is further divided into clauses.
Activity
Click on the link to access the Building Code handbook provided by the Ministry of Business, Innovation & Employment (MBEI).
Go to page 41 and read clause E1.
- Objective – this is the social objective the building must achieve. In this case, this is protecting people and other property from surface water and protecting the outfalls of the drainage system.
- Functional requirements – these are the functions the building must perform to meet the objective. Buildings must be constructed to protect people and property from issues caused by surface water.
- Performance – the detailed performance criteria the building must meet to achieve the functional requirements. E.g. requirement (a) is to convey surface water to an appropriate outfall using gravity where possible.
H5P here
The purpose of this Act is to improve health and safety in the workplace. It seeks to protect workers by minimising risks and promoting safe work practices.
Note that in this Act, the term ‘worker’ includes contractors and subcontractors as well as permanent employees. All workers in New Zealand are protected by this Act. Therefore, every construction project must adhere to the legislation.
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This Act uses the term Person Conducting a Business or Undertaking (PCBU) to describe individuals or businesses that are subject to the Act.
A PCBU can include a company, or a sole trader. It does not include a worker who is employed to work on the site, but do not have managerial control over the work environment.
Requirements
The Act requires that workplace hazards be identified, and risks associated with those hazards be assessed. Control measures must be put in place to mitigate these risks, as far as is reasonably practicable.
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Hazards are sources of potential danger that could impact people or the environment.
Reasonably practicable means that you do not have to do everything possible to reduce risks. Rather you need to ‘take appropriate action that is proportionate to the injury or illness that could occur’ (business.govt.nz).
The HSWA not only covers physical injuries but also illnesses. Construction managers are required to monitor their staff for signs of ill health including psychological illness and stress.
Use the following link to access the HSWA.
Activity
Click on the link to access the document titled Introduction to the Health and Safety at Work Act 2015 – Special Guide.
Read section 3.0 (pages 21-31) and complete the documentation below.
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Assessment
You will be completing an assessment task on the duties of a PCBU under the Act when you get to Assessment 02A1.
H5P here
WorkSafe
The HSWA designates WorkSafe as the regulator overseeing health and safety in the New Zealand workplace. They promote safe practices and enforce safety standards. They provide guidance to PCBUs and workers about best practices relating to health and safety.
Activity
WorkSafe must be informed if a notifiable event occurs in the workplace. Click on the link to open the document titled What events need to be notified?
Read the description of a notifiable event. Have you ever witnessed a notifiable event in the workplace?
Workplace Assessments
One of the roles of WorkSafe is to carry out workplace assessments. These tend to be targeted at high-risk industries, including the construction industry. Visits can be pre-arranged or may be spontaneous. As a construction manager, if your workplace is selected for assessment, you will be required to engage fully with the process. The inspector is likely to:
- Talk to the owner or manager of the site.
- Observe processes at the site and talk to workers.
- Examine any concerning areas.
- Review safety documentation.
If the inspector finds an issue, they will let you know what you need to do to remedy the issue.
Watch
Video Title: WorkSafe Induction Video
Watch Time: 3:30
Video Summary: This video was produced by WorkSafe to use as part of an induction process. It provides an overview of rights and responsibilities related to workplace health and safety
Post Watch Task: Reflect on how you can take responsibility for your own, and your workmates’ health and safety when on a construction site.
Investigations
WorkSafe will investigate if the following occurs:
- a workplace death
- serious injury or illness
- a serious incident that could have resulted in loss of life.
An inspector will visit the site, gather evidence and talk to witnesses. They will also review documentation, training and compliance with regulations. WorkSafe will attempt to determine the cause of the incident and identify whether health and safety regulations were breached. They may make recommendations for workplace safety improvements. If a serious breach of health and safety legislation is identified, the PCBU may be prosecuted.
Reading
Visit the following site and read about a WorkSafe investigation into a death that occurred on a residential building site.
WorkSafe slams 'dangerous' construction industry.
Visit the following site and read about a WorkSafe investigation into a serious incident that could have resulted in a loss of life.
HSWA Regulations
There are a series of regulations that were created to support the HSWA. Remember regulations are examples of secondary legislation designed to support the main Act. Two of these regulations are discussed here.
Health and Safety at Work (General Risk and Workplace Management) Regulations 2016 (GRWM)
The GRWM regulations provide guidance for managing workplace health and safety risks. It mandates that people performing any type of work must:
- Have adequate knowledge and experience to allow that work to be performed safely or be supervised by a person with that knowledge and experience.
- Be adequately trained on the use of any plant, equipment or substances, and have suitable PPE.
Any training provided must be readily understandable to the person undertaking it. Consider this requirement if you are providing training during daily briefings or toolbox talks.
Use the following link to access the GRWM.
Health and Safety at Work (Hazardous Substances) Regulations 2017
These regulations are designed to ensure that hazardous materials used in the workplace are handled and stored in a safe manner. Organisations must identify hazardous materials and perform risk assessments to identify the hazards associated with those materials. Suitable control measures must be implemented.
Use the following link to access the Hazardous Substances Regulations.
Activity
Click on the link to access a document produced by WorkSafe called What the Hazardous Substances Regulations mean for you.
Read the document and think about the following:
- What types of hazardous materials are potentially used at a construction site?
- How can you minimise the risk posed by these hazardous materials when working at a construction site?
This Act aims to build productive employment relationships in New Zealand. It is designed to protect both employers and employees while recognising there is a fundamental power imbalance between the two. It is based on the concept of good faith. As defined in the Act, this “requires the parties to an employment relationship to be active and constructive in establishing and maintaining a productive employment relationship in which the parties are, among other things, responsive and communicative”.
Important
Employees versus Contractors
It is important to note that the ERA only applies to permanent employees. It does not apply to contractors. The Act mandates that all employees must have an employment agreement that sets out the conditions of employment. Contractors do not have an employment agreement. Their employment relationships are governed by contract law rather than employment law.
All construction projects that include permanent employees will be subject to the ERA.
Individual vs Collective Employment Agreements
- Individual employment agreements are negotiated between an individual employee and their employer.
- Collective agreements are negotiated between a union and an employer and apply to employees who are members of the union.
Requirements
When managing staff, construction managers need to be aware of the key requirements of the ERA to ensure staff are managed in accordance with it.
- Construction companies are required to act in good faith in all dealings with employees.
- All permanent employees hired by the construction company must have a written employment agreement. The Act proscribes minimum standards that must be complied with, for example relating to:
- remuneration
- annual leave
- sick/bereavement/parental leave
- rest and meal breaks
- redundancy rules
- dispute resolution.
- Construction companies must consult with employees and/or unions about substantial workplace changes, such as restructuring or redundancies.
- Union representatives must be given access to construction sites to recruit and support members.
- Construction companies must follow the dispute resolution processes outlined in the ERA.
- While the Health and Safety at Work Act 2015 is the main legislation governing workplace safety, the ERA reinforces the importance of safe working conditions.
Use the following link to access the Employment Relations Act.
Important
You will be completing an assessment task on employment legislation when you get to Assessment 02A1.
Ministry for the EnvironmentThe Resource Management Act 1991 (RMA) is the main piece of legislation that sets out how we should manage our environment. It’s based on the idea of the sustainable management of our resources, and it encourages us (as communities and as individuals) to plan for the future of our environment.
Use the following link to access the RMA.
Resource Consent
Resource consent is the process of gaining permission to perform an activity that might impact the environment. Resource consent is usually required when there is a need to:
- regulate changes in land use
- control alterations in land positioning
- manage the building's impact on the environment
- mitigate potential disruptions to local ecosystems
- minimise the impact of construction on the surrounding landscape, such as noise levels, access to sunlight, and parking requirements.
Not every building project needs resource consent. Permitted activities are low-impact activities that are unlikely to affect the environment adversely. These may include:
- house renovations
- residential building projects that meet all required standards
- minor earthworks.
The construction manager needs to be able to determine whether the Act applies to the current project. If resource consent is required, they will work with other stakeholders, such as the project owner, architects and engineers, to submit the consent application.
Reading
Click on the link to access the article Resource consents and processes.
Read the article, clicking on each heading to display information on each activity category.
Important
You will be completing an assessment task on the RMA and resource consents when you get to Assessment 02A1.
Activity
Click on the link to access a document produced by the Ministry for the Environment called Understanding the RMA and how to get involved. This publication is aimed at the public but provides a very clear explanation of the purpose and requirements of the Act.
Read through the guide and answer the questions in the following documentation activity.
H5P here
Tip
As a construction manager, you are most likely to use land-use consents. If subdividing a property, you would need to apply for a subdivision consent.
Activity
Visit the website of your local council (or a council of your choice).
- Read through any information they have on the RMA and application processes.
- Read through any information they have on the local district plan.
- Read through any information they have on the local regional plan.
This Act amended several other pieces of legislation including the Resource Management Act. Changes include:
- A provision for fast-tracking simple residential consents.
- Limiting notified applications.
- Introduction of a streamlined process for regional and district planning.
- Enhancing planning consistency across councils.
Use the following link to access the Resource Legislation Amendment Act.
Activity
Click on the link to open the document Changes to Māori participation in the Resource Management Act 1991.
Think about Te Tiriti principles of partnership, participation and protection and reflect on how the implementation of Mana Whakahono a Rohe may support these principles.
Deemed Permitted Boundary Activities
The Resource Legislation Amendment Act added provisions into the RMA for deemed permitted boundary activities. These provisions streamline the consent process for activities that infringe on boundary rules to a minor degree. In these cases, resource consent may not be required.
Boundary rules include:
- Setbacks: the minimum distances required between the building and a property boundary.
- Height in relation to boundaries: the maximum height of a structure in relation to the boundary.
These rules are designed to protect the privacy and natural light of the neighbouring properties.
Activity
Click on the link to access a document produced by the Ministry for the Environment called Information for applicants: Deemed permitted boundary activities.
Complete the following documentation activity.
H5P here
The purpose of the Construction Contracts Act is to regulate payments and provide a mechanism for resolving disputes arising from construction contracts.
Use the following link to access the Construction Contracts Act 2002.
Retention Money
The Act also sets out the requirements for withholding retention money from subcontractors.
Important
You will be completing an assessment task on the use of retention money when you get to Assessment 02A1.
Activity
Click on the link to access the article from Building Performance titled Retention money requirements. Answer the following questions:
H5P here
The purpose of this Act is to protect both the environment and people in the environment from hazardous substances and new organisms. This may relate to construction sites in the following ways.
- Construction companies must identify potential hazardous substances at their work sites. These might include chemicals, solvents, fuels, dust, moulds and asbestos, all of which could cause harm to workers and the public.
- Once identified, safety measures must be implemented to control these substances. This can include storage, ventilation and spill containment measures.
- Construction companies must take steps to prevent the release of substances that might harm the environment. Proper waste management processes must be followed.
- Workers who are handling dangerous substances must have the required training or certification.
- As a construction manager, you may be required to keep records of hazardous substances stored on site.
Use the following link to access the HSNO.
This Act prohibits discrimination based on a list of specified grounds. These include:
- gender
- religion
- ethnicity
- sexual orientation
- family status
- disability.
Construction managers must ensure that when they are hiring employees or contractors, their hiring practices are not discriminatory. They must make reasonable accommodations so that employees with disabilities are able to work at the site.
They are also required to protect employees from discrimination and harassment at work. Employees should be provided with information on the following.
- The forms that discrimination and harassment can take.
- Behaviour that is deemed unacceptable.
- Procedures if they are being harassed or discriminated against.
- Sanctions that could be imposed if discrimination and harassment is found to have occurred.
Use the following link to access the HRA.
Reflection
Have you ever seen or experienced racial or sexual harassment at work? Are you surprised to learn that it is prohibited under the HRA?
Summary
In this topic, you learnt about the key New Zealand laws applicable to building work and the impact they have on construction projects. Make sure you are familiar with the following Acts:
- Building Act 2004
- Building Code
- Subtopic: Health and Safety at Work Act 2015 (HSWA)
- Employment Relations Act 2000 (ERA)
- Resource Management Act 1991 (RMA)
- Resource Legislation Amendment Act 2017
- Construction Contracts Act 2002
In the next topic, you will learn about non-legislative controls.
