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Kia ora koutou,Welcome to Communiqué of August 2026. This issue we raise a few short topics but concentrate on one: your practice doing work overseas. You might be thinking about joining those NZ architectural practices who live locally and work globally, but it pays to be informed before taking the leap. Thank you to Natasha Markham for this introduction.By now your practice should have received a reminder that insurance renewal is coming up soon, after the change of renewal date to 15 September. NZACS worked hard with AON over several years to make this change so we hope that you find it more convenient than the “traditional” rush at the end of the calendar year.Kia tūpato!
By popular demand, from this year NZACS insurance renewal has changed to 15 September. That means the renewal process will start very soon – during August. As ever, there will be many factors affecting the cost of your insurance renewal for 2026-2027, from global trends to local. One point to bear in mind when budgeting is that your last insurance policy year was only nine months long and this one is going to be twelve again. Also, with the change in renewal date, the dates for payment by instalments (if you take advantage of that option) are also changing.
The Building Amendment Bill is now published. Since the Building Act is one of the most important laws governing our day-to-day practice, the new Bill bears reading:https://www.legislation.govt.nz/bill/government/2026/332/en/latest/There is much more in this Bill than an end to “joint and several” liability for construction!One thing bound to catch the eye of the NZACS member is mandatory insurance for design work (Subpart 2B generally and clause 393L in particular). Many Communiqué readers will know that mandatory professional insurance is not unusual in other jurisdictions, but it is a major change for Aotearoa. Next time you are chatting to your peers – at your PSG for example - be sure to mention this change, because you might be surprised who is practicing without insurance and needs to know this is coming.That said, the Bill is not law yet. The Transport and Infrastructure Committee is calling for submissions (closing on Sunday, 15 November 2026). NZACS will be making a submission on behalf of our members, potentially jointly with the NZIA. Let us know if you have a view about what we should be saying. And consider making a submission yourself: you are an interested stakeholder!
The Claims Committee has asked us to emphasise again that it is important, when discussing budget with your client, to make it clear to ALL concerned what that budget is and isn’t understood to include. For example, is it including or excluding:
It is in everybody’s interest that these parameters are known: remember, even quite “switched on” clients who are superbly competent in their fields might not understand building projects or their budget conventions. And it might be obvious to us that their little extra request takes the client over their stated budget – surely they know that’ll cost extra? - but it isn’t necessarily so to them.
Consider what the earliest point is where the ambition (or wish list) can be tested against the budget even in the most indicative way. Concept design might not be too early.
Architects who have clearly recorded communication with their client about budget are in a much better position, both to avoid trouble in the first place and to respond if client disappointment turns into a claim.
Recently one of our members has had an expensive rap on the knuckles from the Building Practitioners Board. The cause was a severe error of judgement when trying to be helpful. Time was pressing, and our member copied the BCA “stamp” onto some other drawings of consentable work, that had NOT been consented by the BCA. We hope we do not have to spell out why this, or the presentation of anything as an official document when it is not, is wrong.
Fortunately, the Building Practitioners Board took motive into account: it would have been much the worse for our member if the board had thought gain or malice was behind this error. However, the offence was a serious one regardless of motivation.
There is a proper approach where work needs to occur in an emergency, and that is the Certificate of Acceptance under Sections 41 and 42 of the Building Act. That was the eventual solution in this case, which our member helped achieve.
As always, engage the brain as well as the heart while practicing architecture! Your good intentions may mitigate the consequences but can’t expunge the offence.
For New Zealand architects, the opportunity to work on projects in other countries can be professionally rewarding and commercially attractive. However, overseas work introduces a range of risk management issues that require careful consideration before you commit to a project. Many of these issues are not immediately obvious and can have serious consequences if overlooked.
Talk to your AON broker firstThe first and most important step when considering overseas work is to contact your AON broker before you formally agree to any contractual obligations. Standard NZACS policies cover work undertaken by New Zealand architects, but the default geographic scope of cover, and the jurisdictions in which claims can be brought can vary. Do not assume that your existing policies extend to work undertaken or delivered in a foreign country — it may not, or it may only do so under specific conditions. Policies have a standard exclusion for any work undertaken in the USA, Canada and/or their respective territories. A changing list of countries with sanctions are also excluded. Always check with your AON broker first.Your AON broker will need to assess the nature and location of the work in order to confirm or extend your cover. They will consider factors such as:
In some cases additional premium will be required, in others, cover may not be available at all or existing cover will be sufficient at no additional premium. It is far better to make these considerations before you have committed to a project than after a claim arises.Some countries require locally-obtained insuranceIt is important to be aware that certain countries — including some in the Middle East, parts of Asia, and the United States — require that PI insurance be obtained from a locally-licensed insurer rather than from a New Zealand-based policy. This is not simply a matter of having adequate cover; it is a legal or contractual prerequisite. Failure to comply can void your cover, expose you to regulatory penalties, or render your contract unenforceable. Always verify the insurance requirements of the host country as part of your pre-engagement due diligence.Contractual obligations around risk and coverOverseas contracts, particularly those based on the client's preferred form of agreement, can contain provisions that significantly affect your risk exposure. Watch for:
Trade sanctions and embargoesArchitects should be aware that trade sanctions and embargoes apply to professional services, not just to the export of goods. New Zealand imposes sanctions — aligned with international obligations — against a number of countries and regimes, currently including Russia, Iran, North Korea and Belarus. Providing architectural services in connection with sanctioned entities, individuals, or projects can constitute a breach of New Zealand law regardless of where the work is physically performed. Before accepting any engagement with international parties, it is worth checking the New Zealand Ministry of Foreign Affairs and Trade (MFAT) sanctions register, which is updated regularly.Registration and licensingMany countries require that a locally-registered architect of record take responsibility for the project documentation, even where the design work is undertaken externally. In some jurisdictions, practising without local registration — even in a consultancy role — may be a regulatory offence. Check the registration requirements in the relevant country before you begin work, and clarify in your contract precisely what your role is and is not.Other considerationsBeyond insurance and contracts, there are several practical issues that can affect risk:
The opportunities in international practice are real, but so are the risks. The key is to address them systematically before you start, not after something goes wrong.