A reform in New Zealand’s building sector is set to transform the way building materials are sourced and approved, promising greater choice, reduced costs, and improved resilience to supply chain shocks.
Passed on 2 April 2025, the Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill aims to streamline the use of internationally certified building products by integrating them more efficiently into the local regulatory framework.
By the end of July 2025, over 12,000 essential products—including plasterboard, cladding, and insulation—will become easier to use under the new system. These reforms represent a significant step in expanding access to a broader global building products market, while ensuring compliance with the New Zealand Building Code.
Building and Construction Minister Chris Penk says, “Builders and designers will soon be able to count on high-quality products from overseas being accepted by Building Consent Authorities (BCAs), eliminating unnecessary delays and reducing project costs.
The current system has long been criticised for limited competition, high material costs, and sluggish productivity. The 2022 plasterboard (GIB) shortage highlighted the sector’s vulnerability to disruptions in local supply chains.
With just a handful of dominant players, the building materials market in New Zealand has lacked the flexibility and competitive pricing seen in comparable economies.
Minister Penk highlighted the gravity of the issue. “It is unacceptable that it costs around 50% more to build a standalone home in New Zealand than it does in Australia. Since 2019, building costs have risen over 40%, and productivity levels have remained stagnant since 1985.”
By reducing regulatory red tape and introducing recognised international certification schemes, the Government aims to bring New Zealand in line with global best practices, making building faster, more efficient, and less costly.
Under the new legislation, products certified through internationally recognised standards and schemes—vetted and endorsed by the Ministry of Business, Innovation and Employment (MBIE)—must be accepted by BCAs, provided they are used as intended. These changes will reduce the burden on BCAs, builders, and designers to prove compliance, creating a more streamlined consent process.
“The Bill targets every level of the product assurance system: standards, certification schemes, and compliance pathways,” explained Suzannah Toulmin, Manager of Consenting and Practitioners Policy at MBIE. “Our goal is to deliver the greatest benefit across the entire sector.”
Key features of the reform package include:
• Recognition of overseas standards and certification schemes: Reducing duplication in compliance processes
• Building Product Specifications: Simplifying how international standards can be cited and used alongside the Building Code
• Mandatory BCA acceptance: Requiring BCAs to accept overseas-certified products recognised by MBIE, ensuring consistency and reliability.
However, the oversight of BCAs remains crucial. BCAs will still assess proposed building work to confirm that products are being used appropriately and that the final outcome meets Building Code requirements. The core principles of safety, durability, and health remain non-negotiable.
While the immediate focus is on improving access to foreign products, the Bill is also expected to benefit local manufacturers. By enabling local products to be tested against internationally accepted standards, New Zealand-made materials could become more competitive on the global stage.
“This is not just about imports,” Chris Penk says. “It’s also about empowering local producers to meet international benchmarks, opening the door to lucrative export opportunities.”
The Bill is one component of a comprehensive reform programme aimed at modernising New Zealand’s building and construction sector. Other measures include:
• Simplifying the process for minor variations and customisation within building consents
• Removing the building levy on projects under $65,000
• Expanding digital tools and pathways for faster approval processes.
These collective reforms are designed to tackle longstanding barriers in the sector and bring about a more agile, competitive, and efficient building system.
“This Bill aims to reduce the cost of building products, strengthen our resilience to supply shortages, and give more choice to the people designing and building homes,” Toulmin says. “It’s about making the system work better for everyone involved.”
• Enable recognition of overseas standards and standards certification schemes, therefore removing the need for designers, builders or Building Consent Authorities (BCAs) to verify standards
• Streamline the citing of international standards with the new Building Product Specification, which can be used with Building Code documents to show compliance with the Building Code
• Require BCAs to accept building products certified overseas and recognised by the regulator, the Ministry of Business, Innovation and Employment (MBIE).
With implementation just weeks away, the industry is bracing for a shift that could redefine how building work is done in New Zealand. For professionals across the construction value chain, the changes represent both a challenge and an opportunity to adapt, innovate, and build a more competitive and sustainable future.
As Chris Penk put it: “Once these changes take effect, Kiwis will be able to tap into the global building product market—and finally pay a fair price for quality construction.”
