A new manufacturer certification scheme

Last updated: 2 November 2021

bslrp manufacturers scheme

Find out about proposals for innovative and affordable housing, such as prefabrication and off-site manufacturing.

Current state

Current building consenting processes are best suited to traditional construction methods, and can present barriers, duplication and delays for more innovative products and methods.

There is also variation in how Building Consent Authorities (BCAs) throughout New Zealand apply the Building Code to some modular component manufacturing methods when checking for compliance, leading to uncertainty for the building sector and homeowners.

The building regulatory system needs better ways of dealing with these construction methods and new and innovative building components manufactured off-site.

What's changing?

This Amendment Act introduced new voluntary manufacturer certification scheme for Modular Component Manufacturers (MCM).

Prefabricated construction will be monitored to consistently produce a good quality product. The entire process from design (where relevant), manufacture, assembly, transportation and installation on-site, will be assessed through checks and balances to ensure construction meets the requirements of the building code.


If manufacturers meet robust quality standards and criteria, they can apply for certification to produce modular building components in one of two ways:

  • Manufacture only – they can manufacture modular building components to a building code compliant design.
  • Design and manufacture – they can manufacture modular building components to a building code compliant design that they have developed or adapted themselves.

Third party inspections, audits and post-certification surveillance will ensure certified manufacturers are producing modular components that meet the requirements of the New Zealand Building Code.

BCAs can focus on on-site building work not covered by the MCM certification such as site works, foundations, plumbing and electrical connections or connections to utilities such as sewerage and storm water.

The Amendment Act gives Cabinet the power to make regulations and the Chief Executive of MBIE the power to make detailed rules for the scheme. These changes will be implemented around May 2022 (with dates to be confirmed).

What this means for you?

  • Shorter and more efficient consenting for certified manufacturers, with fewer inspections needed.
  • Less duplication and fewer delays will save time and money without compromising quality.
  • Confidence for Building Consent Authorities that certified manufacturers' construction is compliant with the Building Code.
  • Frees up Building Consent Authorities to focus on the compliance of on-site installation like foundations and site works, or elements not covered by the scheme.
  • Building owners may benefit from more building choices and reduced time and costs, and be assured of quality construction in a controlled environment.

Proposed Modular Component Manufacturer scheme rules consultation 2022

MBIE is consulting on the proposed introduction of the Modular Component Manufacturer (MCM) scheme rules.

MCM is a voluntary certification scheme, administered by MBIE, which will enable modular component manufacturers to be certified and registered to produce modular building components deemed to comply with the Building Code.  The introduction of these rules is part of the wider Building System Reforms introduced in June 2021 through the Building Amendment Act 2021 which focuses on building products, building methods

Modular components will be made offsite which can lift productivity, deliver precise, repeatable and consistent construction, reduce waste, building delays and associated building costs. It is intended that certificates issued under the scheme will provide conclusive evidence of compliance with the Building Code. Third party inspections and audits and post-certification surveillance will ensure that certified manufacturers are producing modular components that meet the requirements of the Building Code.

The new scheme is intended to provide a streamlined consenting pathway tailored to this particular type of construction. It will also remove barriers in the consenting process that favour more traditional methods and increase confidence in the quality of modular construction so it is a viable choice for many.

The new scheme will:

  • provide a streamlined consenting pathway tailored to this type of construction
  • enable faster consenting
  • provide assurances that scheme participants deliver quality and durable products which comply with the Building Code
  • remove barriers in the consenting process that favour traditional methods
  • improve confidence in the quality of modular construction making it a viable choice for many

We welcome all feedback

Your feedback will assist with further developing the rules for agreement by MBIE’s Chief Executive. The intention is for the MCM scheme to take effect to coincide with the changes to the Building Act and the new Building Amendment Act 2021 regulations coming into force later this year.

Make a submission on MBIE website

More information is available about the proposed introduction of the MCM scheme on the MBIE website. The consultation document, proposed scheme rules, and information on the ways you can submit feedback can be found at www.mbie.govt.nz/have-your-say

Consultation Period

Consultation will commence on 9 June 2022 and closes at 5pm on 7 July 2022.

This information is published by the Ministry of Business, Innovation and Employment’s Chief Executive. It is a general guide only and, if used, does not relieve any person of the obligation to consider any matter to which the information relates according to the circumstances of the particular case. Expert advice may be required in specific circumstances. Where this information relates to assisting people: