In a move designed to improve efficiency and reduce delays in construction projects nationwide, the government has announced a significant new requirement for Building Consent Authorities (BCAs). Intended to commence from late 2025, BCAs will be required to complete 80 percent of building inspections within three working days of the request.
The Government aims to address one of the most common complaints from builders and developers: unpredictable and sometimes lengthy delays to building inspections that affect project timelines and increase costs.
There is no question that the proposed three-day inspection mandate is well intended. However, does the one-size-fits-all approach make sense? Has it been well thought through? What are the broader implications for BCAs and the industry in prioritising efficiency?
The one-size-fits-all BCAs approach
Initial feedback received suggests the one-size-fits-all mandate fails to account for significant differences among BCAs nationwide:
- Geographic variations: BCAs serving large rural areas face fundamentally different logistical challenges than their urban counterparts, with travel time between inspections potentially consuming hours rather than minutes.
- Resourcing realities: Smaller BCAs with limited staff may struggle disproportionately when facing unexpected absences due to illness or leave.
- Project or inspection complexity: No distinction is made between types of inspections, or large-scale or technically complex projects, which might require specialised resourcing.
- Demand fluctuations: The mandate does not address how BCAs should manage sudden influxes of inspection requests, such as when a major developer might request a number of inspections at one time.
Is it well thought out?
The three-day inspection mandate appears to have been set as a target without consulting with BCAs or the wider industry as to what might be manageable and appropriate.
This raises questions about whether the target is evidence-based, or merely aspirational, and whether it will in fact help achieve the overall goal in a way that is consistent with the purposes of the Building Act 2004. Some BCAs, or their staff, might feel pressured to rush inspections or cut corners to meet these arbitrary deadlines—potentially compromising building quality and safety outcomes.
Broader implications
It is understood from the announcements that BCAs may need to implement various solutions to meet the three-day target, including contracting out inspections or entering into shared services with other BCAs. This has raised concerns that smaller or more isolated BCAs may have outsourcing arrangements imposed on them with the additional associated costs. We have already seen an uplift in our council clients structuring various arrangements with neighbouring BCAs.
We expect that any additional costs are likely to be passed on to homeowners and developers through increased inspection fees. So, while the Government has positioned this as an efficiency measure, we question whether an economic impact assessment of potential cost increases for consumers has been undertaken.
Assuming that the Building Act’s liability provisions are to remain unchanged, a further issue to consider is the potential liability implications for BCAs.
If the pressure to meet timeframes leads to rushed and/or less comprehensive inspections, who will bear the liability when issues are missed? What is the BCA’s liability for self-certifications and remote inspections? Will there be any liability if the mandated timeframe cannot be met?
Looking Ahead
MBIE has advised they will be updating guidance on the BCA accreditation scheme to help BCAs understand how to comply with the new requirement, ensuring a smooth transition to the new standard. As the industry prepares for this significant change, all eyes will be on MBIE’s upcoming guidance and how it addresses the numerous concerns raised by industry stakeholders.
Key questions that remain to be answered include:
- Will the guidance account for different operational contexts?
- Will there be a phased implementation approach?
- How will quality assurance be maintained in outsourced/remote/self-certified inspection scenarios?
- Will there be any measures to prevent excessive cost increases for consumers?
- What liability protection, if any, will be provided for BCAs?
- What consequences will BCAs face for non-compliance?
We look forward to these questions being answered in advance of the mandated timeframe coming into force.
