Maximum penalties and time frames
Last updated: 2 June 2021
From 8 June 2021, changes came into effect that will help improve compliance, deter poor or illegal behaviour and strengthen the enforcement of the building regulatory system to ensure that buildings are safe and the public are protected from harm.
The changes
From 8 June, 2021, the following changes came into effect:
- The timeframe to investigate a potential offence against the Building Act and file a charge doubled from six to 12 months.
- Maximum penalties on conviction were increased to a level that reflected the seriousness of the offences.
- Some maximum penalties are were differently for individuals than those for organisations.
Changes to public notification and the building levy also came into effect. These changes allowed:
- the Chief Executive of MBIE to spend the Building Levy on a broader range of functions under other relevant legislation to improve MBIE's ability to monitor, oversee or improve the performance of the building sector
- public notifications to be carried out online rather than requiring notifications to be published in daily newspapers.
Timeframes to investigate Building Act offences
From 8 June, 2021, enforcement agencies (MBIE, territorial authorities, regional authorities and other authorised people) have 12 months (increased from six months) to file a charging document for an offence against the Building Act from the date that an offence becomes known, or from when the agency could not justify having missed an offence.
To report a Building Act offence, visit 'formal complaints'.
Offences committed prior to 8 June, 2021
The new penalties and investigation timeframes will apply to any offences committed after 8 June 2021. Any offences committed before this date will be subject to the previous maximum penalties, and a 6-month investigation period, even if the investigation starts after 8 June 2021:
| Date offence committed | Timeframe available to investigate and file a charge | Penalty Amount |
|---|---|---|
| Day before 8 June 2021 or earlier | 6 months | Old maximum penalty |
| 8 June 2021 onwards | 12 months | New maximum penalty |
The new penalties
The intent for these increased maximum penalties is based on the following factors:
- the harm these offences may do to an individual or the wider public
- the possible harm to the integrity of the building regulatory system
- the fairness of the fine and its appropriateness in creating compliance
- how other penalty regimes responded to similar offences.
| Changes to offences/penalties apply to | Old maximum fine liable upon conviction | New maximum fine liable upon conviction for an individual | New maximum penalty liable upon conviction for organisations |
| s326(1) - Failing to comply with summons (by the Board) | $2,000 | $5,000 |
Offences related to administrative obligations where the potential harm to the public and the building regulatory system is considered low or minor.
| Changes to offences/penalties apply to | Old maximum fine liable upon conviction | New maximum fine liable upon conviction for an individual | New maximum penalty liable upon conviction for organisations |
|---|---|---|---|
| s42(2) – Failing to apply for a certificate of acceptance for urgent work as soon as practicable after completion of building work. | $5,000 | $5,000 | $25,000 |
| s58(3) - Building Consent Authority (BCA) failing to pay building levy to the Territorial Authority (TA). | $5,000 | $5,000 | $25,000 |
| s63(4) – Applicant for a building consent, a BCA or TA failing to provide information to the Chief Executive (CE) in order to asses amount of building levy payable based on estimated value if building work. | $5,000 | $5,000 | $25,000 |
| s114(3) – Owner failing to give written notice to the territorial authority of proposed changes to use, extension of life or subdivision of buildings. | $5,000 | $5,000 | $25,000 |
| s270(7) – Failing to provide any information on matter that the product certification body requires relating to the annual review of a product certificate. | $5,000 | $5,000 | $25,000 |
| s314(1) – A person commits an offence if the person holds himself or herself out as a person who is licensed to carry out or supervise building work or building inspection work, or building work or building inspection work of a certain type, while not being so licensed. | $5,000 | $5,000 |
Offences where the offender has stricter defined responsibilities under the Act, where lives could be put at risk or the potential harm to the regulatory system is considered high.
| Changes to offences/penalties apply to | Old maximum fine liable upon conviction | New maximum fine liable upon conviction for an individual | New maximum penalty liable upon conviction for organisations |
|---|---|---|---|
| s138(4) - Dam owner failing to comply with a direction from a regional authority to have a dam classification audited by a recognised engineer. | $5,000 | $20,000 | $60,000 |
| s150(4)(a) - Dam owner knowingly failing to display a dam compliance certificate required to be displayed. | $5,000 | $20,000 | $60,000 |
| s150(4)(c) - Dam owner knowingly displaying a dam compliance certificate other than in accordance with section 150. | $5,000 | $20,000 | $60,000 |
| s168(1AA) – Failing to comply with a notice to fix a means of restricting access to a residential pool. | $5,000 | $20,000 | $60,000 |
| s207B - Failing to comply with CE notice for provision of information. | $5,000 | $20,000 | $60,000 |
| s365(1) – Intentionally failing to comply with direction of authorised person. | $5,000 | $20,000 | $60,000 |
| s369(1)(a)(b) - Knowingly making false or misleading statement or knowingly making a material omission in any communication, application or document that is required to be made or given under the Act. | $5,000 | $20,000 | $60,000 |
Offences that require prosecution to prove the wilful intention of the offender to commit the offence, carry a greater risk to lives or where there is impersonation of authority figures.
| Changes to offences/penalties apply to | Old maximum fine liable upon conviction | New maximum fine liable upon conviction for an individual | New maximum penalty liable upon conviction for organisations |
|---|---|---|---|
| s371D(1) - Impersonating or falsely pretending to be an enforcement officer named in a warrant issued under section 371B(3). | $5,000 | $50,000 | |
| s206(3)(b) – Impersonating or falsely pretending to be a person named in a warrant supplied by the chief executive to enter land or buildings. | $5,000 | $50,000 | |
| s225(1) - Impersonating or falsely pretending to be an authorised officer. | $5,000 | $50,000 | |
| s150(4)(b) - Dam owner knowingly displaying a false or misleading dam compliance certificate. | $5,000 | $50,000 | $150,000 |
| s368(1)(a) - Wilfully removing or defacing a notice published under the Act or inciting another person to do so. | $5,000 | $50,000 | $150,000 |
| s366(1)(a) - Impersonating a building consent authority or regional authority, or an officer or employee of a building consent authority or regional authority. | $5,000 | $50,000 | $150,000 |
| s367(1) - Wilfully obstructing, hindering, or resisting a person executing powers conferred to that person under the Act or its regulations. | $5,000 | $50,000 | $150,000 |
| s145(4) - Dam owner failing to comply with a direction from a regional authority to have a dam safety assurance programme audited by a recognised engineer. | $10,000 | $50,000 | $150,000 |
| s85(1) - Person who is not Licensed building Practitioner (LBP) carrying out restricted building work without supervision of LBP who is licensed to carry out that work. | $20,000 | $50,000 | |
| s85(2) A LBP carrying out restricted work or supervising restricted work that he/she is not licensed to carry out or supervise. | $20,000 | $50,000 | |
| s87A(5) – Owner-builder failing to provide prescribed notice to building consent authority when owner-builder carries out restricted building work. | $20,000 | $50,000 | |
| s314(1) - Person holding himself or herself out as being licensed to do or supervise building work or building inspection work while not being so licensed. | $20,000 | $50,000 | |
| s86(1)(1A) - Engaging another person to carry out or supervise restricted building work if that person knows that the person is not a licensed building practitioner licensed to carry out or supervise the work. | $20,000 | $50,000 | $150,000 |
| s108(5)(a) - Failing to display a building warrant of fitness required to be displayed. | $20,000 | $50,000 | $150,000 |
| s108(5)(b) - Displaying a false or misleading building warrant of fitness. | $20,000 | $50,000 | $150,000 |
| s108(5)(c) - Displaying a building warrant of fitness other than in accordance with section 108. | $20,000 | $50,000 | $150,000 |
| s133AU(2)(3)– Failing to attach an EPB notice or an EPB exemption notice on or adjacent to a building; or failing to notify the territorial authority when an EPB notice or an EPB exemption notice ceases to be attached on or adjacent to a building or becomes illegible. | $20,000 | $50,000 | $150,000 |
| s134(C) - Dam owner failing to classify dam according to the potential impact of a failure of the dam on persons, property and the environment. | $20,000 | $50,000 | $150,000 |
| s140(3) - Dam owner failing to prepare, or arrange the preparation of, a dam safety assurance programme and submit it for audit. | $20,000 | $50,000 | $150,000 |
| s362D(5) - Knowingly making a statement that is false or misleading in a material particular or knowingly making a material omission in any communication or document required to be made or given relating to entering a residential building contract. | $20,000 | $50,000 | $150,000 |
| s27(2) - Using a building method or product in breach of ban under section 26. | $20,000 | $300,000 | $1,500,000 |
| s128A(1) - Failing to comply with a notice issued under section 124(2)(c), within the time stated in the notice, requiring work to be carried out on a dangerous, earthquake-prone, or insanitary building. | $200,000 | $300,000 | $1,500,000 |
| s133AU(1) - Owner of a building or a part of a building that is subject to an EPB notice failing to complete seismic work on the building or part by the deadline that applies under section 133AM. | $200,000 | $300,000 | $1,500,000 |
| s154(3) - Dam owner failing to comply with a notice, within the time stated in the notice, requiring work to be carried out on a dangerous dam to remove or reduce the danger. | $200,000 | $300,000 | $1,500,000 |
| s199(1)(2) - Performing functions of building consent authority or regional authority if person not registered, etc. | $200,000 | $300,000 | $1,500,000 |
| s362V(1) - Offence for commercial on-seller to transfer household unit without code compliance certificate. | $200,000 | $300,000 | $1,500,000 |