📋 Tender Overview
The earthquake-prone building system will be refocused to reduce repair costs and reinvigorate communities, Building and Construction Minister Chris Penk says.
While well intentioned, the current system for assessing and managing seismic risk in buildings places an overwhelming financial burden on building owners.
For many buildings, the price of strengthening runs from hundreds of thousands to several million dollars. As a result, these buildings are often left empty and become derelict, making them even more dangerous to bystanders in an earthquake.
Cities and regions are losing the businesses, churches, town halls and classrooms that are central to their local economies and community spirit.
On top of this, apartment and small business owners who cannot afford the fixes demanded by the current laws have faced years of stress and sleepless nights, as their most valuable asset has become unsaleable through no fault of their own.
Today, I am announcing a change to a fairer, risk-based system that will bring enormous relief by lowering costs for building owners, while keeping Kiwis safe.
The Government is removing the New Building Standard NBS ratings currently used by engineers to determine whether a property is earthquake-prone.
The NBS rates how an existing building is expected to perform in an earthquake compared to a new building and has proven too broad and inconsistent.
A buildings overall risk status is determined by its weakest part, meaning even a small defect can result in an entire building being classified as earthquake-prone.
The new earthquake-prone building EPB system will capture only buildings that pose a genuine risk to human life in medium and high seismic zones.
This category includes concrete buildings three storeys or higher, and those constructed with unreinforced masonry.
Auckland, Northland and the Chatham Islands will be removed from the regime entirely to reflect the low seismic risk in those areas.
Unreinforced masonry buildings under three storeys in small and rural towns will no longer require remediation or warning notices, but owners must secure the facade before the building can be removed from the earthquake-prone register.
This change recognises that the risk of a facade falling on a pedestrian is simply lower in communities with fewer than 10,000 residents than it is in larger urban centres, because there are fewer people on the streets.
For buildings that still require some remediation, the Government is removing the rule that owners must upgrade fire safety and disability access at the same time as earthquake strengthening.
This requirement can add significantly to building costs and has discouraged owners from carrying out essential seismic safety work.
Ministers will also consider further regulatory relief, including changes to resource management and heritage rules.
Finally, local councils will have the authority to grant extensions to remediation deadlines of up to 15 years, giving building owners time to secure funding, plan and carry out any major work still required.
This refocused earthquake-prone building system is expected to save New Zealanders more than 8.2 billion in remediation and demolition costs.
The changes give effect to recommendations from an independent review led by the Ministry of Business, Innovation and Employment MBIE.
The review confirmed what has always been clear: protecting human life must remain our top priority.
It also recognised the need for a fairer balance between costs and the real risks buildings pose, so that strengthening work is achievable.
The Government is ensuring New Zealanders can get on with the work that matters, so that our businesses, regional communities and cities can thrive.
Notes to editor:
Attached: Report of Seismic Risk Management Review.
Attached: Refocused earthquake-prone building system media factsheet.
The Cabinet Paper and Regulatory Impact Statement is available
EPB system changes will be enacted through the Building Earthquake-prone Building System Reform Amendment Bill.
Coastal Otago, including Dunedin, will be classified as a medium seismic hazard area and will remain within the earthquake-prone building system.
