The Government wants to crack down on dodgy builders, with plans to significantly increase penalties for shoddy work or dodgy behaviour, 1News can reveal.
Cabinet will soon discuss what the crackdown on so-called cowboy tradies will look like.
The proposed changes could see fines for individuals rise from $10,000 to $50,000 for deceptive behaviour, while businesses may face penalties of up to $150,000.
The Government is also looking to improve consumer protection measures and review licencing, complaints, and disciplinary processes.
Building and Construction Minister Chris Penk said the proposed changes aim to target a “small minority” of builders performing poorly or unethically.
He added that it would boost accountability in the sector.
Penk said: “The small minority who are performing poorly — maybe in a careless or, in some cases, unethical way — actually drag down the whole sector.”
With estimates around 10-20%, just how many builders fit into that “minority” is not known.
Last year, 110 builders were disciplined, with the majority of them fined or penalised in other ways. So far in 2024, 66 have been disciplined.
The crackdown comes as the Government moves to loosen some regulations and move to options such as remote consenting.
As part of the changes, it wants good tradies to be rewarded — for instance, being able to build granny flats without regulations — while giving the boot to bad builders.
Master Builders Association chief executive Ankit Sharma welcomed the focus on accountability, noting that even a small number of failing builders can have big impacts.
“Even if you have a small number of builders who fail, the impact they create is quite significant,” Sharma said.
Various agencies are responsible for monitoring builders, and disciplining them where necessary, with Master Builders agreeing an overhaul was long overdue.
“There are low barriers to entry in New Zealand,” Sharma said.
“We really need to look at the process somebody goes through before they get certified to be able to undertake a complete build. I think to be able to get skills to go and work for another builder with their oversight is different.”
Lane Neave partner Iain Stephenson, who has dealt with numerous building disputes, agreed stricter rules were necessary.
“There needs to be some degree of more stringent licencing where it’s actually probed by the relevant ministry and not simply a question of waiting for consumers to complain, and for there then to be an investigation,” he said.
He added: “One of the worst circumstances for someone with a new build is where it all falls down halfway through. The builder goes insolvent and that’s a hard one. We don’t have the insurance protections.”
But while increased penalties may deter some, others say it’s criminal sanctions that are needed.
“I think that potentially has more of a message to it,” Stephenson said.