Last year, BRANZ published the findings of its biennial industry insights research. While this data feeds into our research investment decision-making process, more importantly, it provides a current snapshot of what the industry itself views as its greatest challenges. It is your mirror.
These were your top five challenges as identified in the survey:
- The system’s relationship to the Building Code and regulations.
- Improving build quality – moving beyond compliance.
- Innovation and risk – getting the balance right.
- Building sustainably – ensuring the right drivers are in place.
- Addressing shortages – building system resilience.
The impact of legislation on innovation
This issue of Build focuses on legislation and innovation. These are identified as areas of concern by the industry and are considered inextricably linked. And while there are divergent views regarding the importance and role of codes and regulations, there is consensus the regulatory framework directly impacts innovation.
As one industry leader put it, ‘This is an ecosystem. As you bring new products in, you’ve got to influence policy as well. You’ve got to influence regulation. You’ve got to work together on that.’
The industry insights findings highlight a strong desire for innovation. However, industry believes the system makes it difficult to get innovations approved – that the regulatory framework doesn’t keep up with innovation and that, given Aotearoa New Zealand’s small size, the time and effort it takes to get innovations approved simply isn’t worth it.
BRANZ’s response
Concerns about the complexity of the regulatory framework and its impact on innovation have been raised by BRANZ in recent submissions to both the Commerce Commission and to MBIE.
While the regulatory framework has been designed to allow flexibility to use new products, in practice, it has not been totally effective. We believe this is because the regulatory system is too complex and creates uncertainty around how to ensure a product will comply.
This uncertainty then incentivises designers, builders and building consent authorities to favour tried and tested building products to ensure lower personal and organisation risk. In short, the complexity of the regulatory environment is driving behaviours and decisions across the building system that are risk averse, conservative and not conducive to innovation.
Both the Commerce Commission and MBIE have identified a range of contributing factors and potential solutions, which we support. However, BRANZ has posited that the current regulatory environment cannot genuinely support innovation without a major rethink.
Lacking the big picture
We believe that insufficient consideration has yet been given to how the regulatory framework is creating uncertainty around the pathways for demonstrating product compliance. The dots need to be joined, because without the full picture, a piecemeal or ad hoc approach risks delaying the transformational change urgently required to champion and effect innovation.
BRANZ is committed to exploring this area of uncertainty and looking for evidence to fully understand what is working and what is not working around the pathways for demonstrating product compliance.
An impartial, evidence-based understanding of the specific barriers to innovation is a prudent approach that can help avoid inadvertent or unintended consequences. And it will enable system-wide conversations about what might be required to move to a regime that has less regulatory uncertainty, is practicable and improves industry’s trust and confidence in the system.