Code Compliance Certificates
What is a Code Compliance Certificate
A code compliance certificate is the final approval that all works undertaken comply with the building consent. You must apply for a code compliance certificate after all work has been completed. This is an important document and should be retained for future reference.
Sales by Residential Property Developers section 364
Section 364 of the Building Act 2004 introduces important consumer protection measures covering the sale of household units by residential property developers or ‘spec builders’. It is an offence for a residential property developer to complete the sale, or allow a purchaser to take possession of, a household unit before a code compliance certificate has been issued.
Effectively, this makes it the developer’s responsibility to fix any faults before sale. A person who commits an offence under section 364 is liable to a fine of up to $200,000. This fine applies to each household unit sold without a code compliance certificate. So, if a development included five units and each unit was sold without a code compliance certificate, the developer is liable for a fine of up to $1 million.
Note: This legislation does not apply to contracts for sale and purchase entered into before 30 November 2004.
What is the reason for this?
People buying a residential property from a developer have a right to expect it to be completed and to comply with the Building Code. The onus for making sure a building complies with the Building Code is on developers — they have the control of the building process.
The developer and purchaser may contract out of this provision but only on a form prescribed under the Building (Forms) Regulations 2004. This form (Form 1) makes the consequences of buying a properly without a CCC clear to consumers. It also advises consumers to obtain independent legal advice before signing. Copies of Form 1 are available from the Department of Building and Housing’s website www.dbh.govt.nz
What is meant by a ‘Household Unit’?
A household unit is a building or group of buildings intended to be used mainly for residential purposes and by one household (e.g., house, apartment or flat). It does not include a hostel or boarding house.
What does ‘Complete the Sale’ mean?
‘Complete the sale’ means accepting final payment and transferring the title. You can accept progress payments for the job.
How is ‘Residential Property Developer’ defined?
A residential property developer includes any person who, in trade, builds or arranges to build a household unit for the purpose of selling it. This could include large developers, or builders or individuals building homes on ‘spec’. It also includes a person who, in trade, buys a household unit from a builder or developer with the intention of selling it on.
If your building is open to the public, whether for tree or payment of a charge, the building can not be used/occupied until a code compliance certificate is issued. This is because public premises will generally have systems within the building which contribute to life safety and well-being of the building user. (These systems are called specified systems). In certain circumstances it may be possible to apply for a certificate for public use, which will allow a building to be used before the code compliance certificate is granted. Each application will be considered on a case-by-case basis.
Any building which is open to the public whether for free or payment of a charge, including:
- shopping malls
- cinemas
- maraes
- camping grounds
- garages and workshops
- funeral homes
- office I retail complexes
- rest homes, etc
A Compliance Schedule is a document issued by the building consent authority for buildings that contain specified systems. Specified systems include:
- automatic systems for fire suppression
- automatic or manual -emergency warning systems for fire or other dangers
- electromagnetic or automatic doors or windows
- emergency lighting systems
- escape route pressurisation systems
- riser mains for use by fire services
- automatic back-flow preventors connected to a potable water supply
- lifts, escalators, travelators, or other systems for moving people or goods within buildings
- mechanical ventilation or air conditioning systems
building maintenance units providing access to exterior and interior walls of buildings
- laboratory fume cupboards
- audio loops or other assistive listening systems
- smoke control systems
- emergency power systems for, or signs relating to, a system or feature specified for any of the above
Important: From 31 March 2008, a single household unit will require a compliance schedule, if it contains a cable car or is serviced by a cable car. A compliance schedule lists the systems and features, including the inspection, maintenance and reporting procedures needed to keep them in good working order.
A compliance schedule must be kept on site and made available to building officers, Independent Qualified Persons (IQP’s), Licensed Building Practitioners (LBP) and authorised agents.
What is a Compliance Schedule Statement?
A compliance schedule statement is issued by the building consent authority and serves as temporary notification of compliance schedule requirements, it will list the inspection, maintenance and reporting procedures necessary to keep the specified systems in good working order. It is issued at the same time as the code compliance certificate. It must be replaced in 12 months with a building warrant of fitness, which is issued by the building owner.
A compliance schedule must be applied for at the same time a building consent application is made and will be issued with a code compliance certificate by the building consent authority for:
- new buildings (if the building has one or more specified systems), or
- an upgrade to an existing building or systems, required as a result of a change of use or alterations, which may also require a building consent.
What information do I need if I am applying for a Compliance Schedule?
Your architect I designer should provide you with information relating to the performance standards for each specified system contained within the building. The performance standards will identify the inspection, maintenance and reporting procedures required for each system.
Can I be prosecuted for not obtaining a Compliance Schedule or if my Building Warrant of Fitness has expired?
Yes, depending on the alleged offence the fine ranges from $20,000 to a maximum of $200,000.
What is a Building Warrant of Fitness (BWOF)?
A building warrant of fitness (Form 12) is a statement issued by the building owner to Council stating that the requirements of the compliance schedule have been fully met.
The building warrant of fitness must have attached to it all certificates of compliance issued by the Independent Qualified Persons (FOP) or Licensed Building Practitioner (LBP). These documents must be issued in the prescribed form (Form 12A) and certify that the inspection, maintenance and reporting procedures stated in the compliance schedule, have been fully complied with during the previous 12 months.
The BWOF must be re-issued to Council on the anniversary of the issue of the compliance schedule (every 12 months) for the life of the building.
What documents should I keep regarding the Building Warrant of Fitness?
You are legally required to obtain written reports relating to the inspection, maintenance and reporting procedures of the compliance schedule which must be signed by the Independent Qualified Persons (lOP) or Licensed Building Practitioner (LBP) who has carried out any of the listed procedures, (inspection, maintenance or reporting).
You are required to keep all reports together with the compliance schedule for a period of 2 years and produce those reports for inspection when required.
What is an IQP (Independent Qualified Person)or an LBP (Licensed Building Practitioner)?
An Independent Qualified Persons (IQP) or Licensed Building Practitioner (LBP) is a tradesperson who is qualified to carry out any performance inspection, maintenance, reporting or recommendation on a specified system.
All Independent Qualified Persons (IQP) are required to be registered with Council.
The Licensed Building Practitioner programme will begin in November 2009. Approval and registration of Licensed Building Practitioner’s will be maintained by the Department of Building and Housing. A register will be maintained in accordance with the Act to help the public:
- determine if a person is qualified
- choose an appropriate LBP, and
- identify which LBP’s have been disciplined within the last 3 years.