Tailored AI support for our members
AI was one of the standout themes at Constructive 2025, with PwC’s session receiving much attention and sparking lively discussion. Feedback was overwhelmingly positive and members said the practical examples and insights gave them clarity and confidence to begin their own AI journeys.
Building on that momentum, Master Builders and PwC are partnering to help members take the next step with tailored AI support:
- Executive education (60–90 mins): A practical briefing for leadership teams that demystifies generative AI, explores industry applications, and addresses privacy, security, and risk – with live demos to show what’s possible.
- Discounted “getting started with AI” package: Preferential pricing on PwC’s structured support, covering AI strategy, governance, training, and implementation.
- Discounted on-demand learning: Access to PwC Academy’s AI webinar series and more than 800 short courses from PwC experts and global learning partners.
Places are limited for early participants, but PwC will work with all interested members to schedule sessions for the remainder of 2025.
For more information or to register interest, email: advocacy@masterbuilder.org.nz
Looking ahead: 2026 economic and fiscal focus
The Half Year Economic and Fiscal Update (HYFU) is scheduled to be released on 16 December and will outline the Government’s updated economic and fiscal outlook. This is worth taking note of because it will determine available funding which public projects rely on. Master Builders’ Residential and Commercial Working Groups met with Treasury and the Reserve Bank of New Zealand (RBNZ) to feed sector insights into HYEFU, ensuring decision-makers are hearing directly about current conditions and constraints on the ground.
Recent forecasts show ongoing deficits, rising debt, and tight limits on new spending, leaving less fiscal space for major infrastructure or housing programmes. As a result, construction in 2026 may face delays, downsizing, or slower rollout of public projects, while moderate interest rates and a still-soft recovery may continue to limit private residential and commercial building.
When HYEFU is released, watch for updates on deficits and debt, signals about infrastructure and housing priorities, how much funding is available for new projects, and the forecasts for growth, migration and inflation. These will indicate how much construction activity the Government can realistically support.
Overall, the sector should expect a cautious environment, with potential upside only if fiscal conditions improve or the Government chooses to prioritise investment in housing and infrastructure.
Draft National Infrastructure Plan
Master Builders supports the Infrastructure Commission’s draft National Infrastructure Plan. However, we urged the Government to make it practical, backed by stable, long-term funding and more specialist building and construction capability in government departments.
We called for predictable investment pipelines, better procurement processes, and fairer access for New Zealand builders. Maintenance needs to be treated as a core priority to keep public buildings safe and create steady regional jobs.
We supported smarter, right-sized projects that use modular construction, digital tools, and collaborative delivery models, backed by consistent funding to ensure capable delivery.
What’s next
The Infrastructure Commission has completed consultation on the draft plan. The final plan will be delivered to the Government at the end of this year, with a formal Government response expected in 2026.
Infrastructure Minister Chris Bishop has signalled his intention to ask the Business Select Committee to hold a special Parliamentary debate on the final plan to drive cross-party consensus on long-term infrastructure reform.
Recent submissions to government
On behalf of members, we have submitted on recent government proposals, including:
- MfE – RMA Package 1 - Infrastructure and Development
- MfE – RMA Package 2 - Primary Sector
- MfE – RMA Package 4 - Going for Housing Growth
- Opt-in Self-Certification for Simple Residential Dwellings Regulations
View all submissions
Reforming the Resource Management Act
The Government’s announcement on 9 December 2025 regarding the repeal of the Resource Management Act (RMA) represents one of New Zealand’s most significant regulatory reforms in recent decades.
The introduction of the Planning Act and the Natural Environment Act is designed to reduce consenting requirements by about 50% and consolidate over 100 council plans into 17.
Economic modelling forecasts that these changes may deliver long-term GDP growth of around $3 billion annually. These reforms are expected to accelerate housing and infrastructure development, lower compliance costs, and ensure greater consistency in national regulations.
The transition to the new legislative framework, scheduled to continue through 2031, will be pivotal in achieving an effective balance between efficient development and environmental stewardship.
Master Builders has actively contributed to this process by providing member perspectives through formal submissions and regular engagement. Our key recommendations include:
- The establishment of nationally consistent standards and definitions, accompanied by proportionate consent conditions.
- Ensuring infrastructure readiness aligns with land supply so that land is genuinely suitable for development.
- Adopting pragmatic procurement and delivery models, such as early contractor involvement, equitable risk distribution, and scalable modular solutions.
- Prioritising social infrastructure and maintenance investments to enhance sector resilience and capability.
- Improving council performance and accountability to promote uniform application of national directives across all regions.
Next steps for members
We’ll review the draft laws and talk with our groups about how they’ll work in practice. We’ll push for clear, workable standards and consistent council action.
Please send us examples of recent delays or issues with approvals or infrastructure to help us keep advocating for improvements.
Contact us at: advocacy@masterbuilder.org.nz
SA-2025 updated – a stronger, fairer subcontract agreement
The subcontract agreement SA-2025 was released earlier this year as the first major update since 2017.
SA-2025 was developed collaboratively by Master Builders and the Specialist Trade Contractors Federation to ensure practicality, balance, and alignment with NZS 3910:2023 and current industry standards.
Since its release in July, we have made minor technical revisions to correct number referencing and address typographical errors.
SA-2025 is available now (via Offsite)
Voluntary consolidation of building consent authorities
The building consent authority (BCA) reform continues to progress with work underway to better enable councils to collaborate and deliver consenting services more efficiently.
A draft Bill covering proposed changes to the Building Act 2004 that includes liability-setting reforms and measures to support voluntary BCA consolidation is scheduled to be introduced to Parliament in early 2026.
The intention behind this is to remove current barriers and streamline processes so that councils can more easily share services or transfer consenting functions to other BCAs where it is practical to do so. The emerging model is expected to draw on aspects of the Local Water Done Well approach that will promote regional collaboration while maintaining local accountability.
Until the Bill is passed by Parliament, the existing BCA operating arrangements remain in place.
Master Builders continues to work closely with MBIE and Minister Chris Penk’s office to ensure the reforms deliver practical improvements – faster, more predictable consents and clearer accountability between councils and central government.
Moving to proportionate liability for building projects
The Government’s recent announcement on the transition from joint-and-several liability to a proportionate liability model is significant. Under these proposed reforms, councils would no longer serve as the “last port of call”. Instead, each party involved – including builders, designers, engineers, and councils – would have their liability capped according to their respective share of the work.
This initiative is primarily aimed at addressing the protection gap faced by homeowners in residential construction. The Government considers that the commercial sector is already well served by robust risk management practices, such as professional indemnity insurance and warranties. Nonetheless, officials will continue to monitor the commercial and high-rise markets following implementation to ensure effective risk management remains in place.
Preliminary legal analysis indicates that headline liability for head contractors is likely to remain unchanged. However, the proposals may fundamentally affect settlement processes, increasing the importance of subcontractor solvency, insurance coverage, and contractual terms.
It is essential that comprehensive safeguards are implemented to protect homeowners and clients from being unfairly burdened when issues arise. While this shift promises to enhance fairness in how responsibility is allocated, it is critical that the system prioritises the security and confidence of homeowners, protecting them from protracted legal disputes or undue financial hardship.
Further consultation on the proposed model is expected in early 2026, and we remain committed to advocating for our members’ interests as more details emerge.
Vocational education: Industry skills boards
Reform of vocational education is progressing with the establishment of Industry Skills Boards (ISBs) to replace Workforce Development Councils and the old Te Pūkenga model. These new ISBs are designed to restore industry leadership in qualification development, moderation, and workforce planning.
The Establishment Advisory Group for Construction and Specialist Trades is advancing slowly amid tight budgets, while BCITO is preparing to re-establish as an industry-owned Private Training Establishment in 2026.
New government procurement rules published
The 5th Edition of the Government Procurement Rules took effect from 1 December 2025.
They introduce several important changes for the construction sector. The standout update is the new economic benefit to New Zealand (Rule 8), which requires agencies to give a minimum 10% weighting to local economic benefits in contract evaluations. This shift encourages greater use of New Zealand labour, suppliers, and innovation, offering local construction firms a stronger footing in government tenders.
Another key change is the introduction of a new rule for planning for new construction works (Rule 9), which aligns closely with Rule 6 (planning) and Rule 7 (estimating the monetary value of procurement). Together, these rules strengthen expectations around early project planning, budgeting, and right-sizing procurement approaches according to value, risk, and complexity that is a move aimed at reducing red tape and improving project delivery outcomes.
New skilled migrant residence pathways to boost workforce
The Government has unveiled major changes to the Skilled Migrant Category Resident Visa, introducing two new residence pathways designed to help employers retain skilled workers and address critical labour shortages. These changes will take effect mid-2026 as part of the Going for Growth immigration programme.
What’s changing?
The new system focuses on practical experience and qualifications rather than high salary thresholds, making residence more accessible for skilled workers in key sectors.
- Skilled Work Experience Pathway
- For migrants in skilled roles (ANZSCO skill levels 1–3).
- Requires five years of relevant experience, including two years in New Zealand earning at least 1.1 times the median wage.
- Trades and Technician Pathway
- Targets specified trades and technician roles.
- Requires a Level 4+ qualification and four years post-qualification experience, including 18 months in New Zealand at or above the median wage.
For more information see: Changes to the Skilled Migrant Category Resident Visa announced (New Zealand Immigration)
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