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  Building Research Levy

In the late 1960s, the building and construction industry requested a levy be imposed on the industry to fund relevant research for the good of the industry.

The Building Research Levy Act 1969 authorises the levying of building contractors to provide money for research into improved techniques and materials for use in the building industry.

Under this Act, 0.1 per cent of the contract value (above $20,000) of every construction project put forward for building consent in New Zealand is payable by the builder to the Building Research Association of New Zealand Inc. In practice, the levy is charged and collected by Building Consent Authorities and then paid to BRANZ.

Investing the levy

In accordance with the Building Research Levy Act 1969, money raised by the Levy is used by BRANZ for the following purposes:

  • Conducting construction industry-related research and other scientific work.
  • Allocation of grants to persons, institutions or bodies carrying out construction industry-related research.
  • Publication of information.
  • Establishment and maintenance of a library.
  • Holding of lectures, seminars, exhibitions and public meetings to disseminate information about building research.
  • Provision of an advisory service.
  • Acquisition of land and premises for the purposes of BRANZ.
  • Payment of staff salaries and honoraria of directors.

The legislation controls the use of levy funding and the purposes to which it may be put. The amount of actual levy funds collected each year can vary significantly, in response to the level of building activity.

BRANZ therefore has no direct control over the levy income it receives but smooths out the high and low years by setting aside reserves in high levy income years to be used in times of low levy income.

Details about BRANZ approach to Levy Stewardship can be found at Investing in Research