Updated Feb 2017Since March 2012, all Restricted Building Work (RBW) must be undertaken by (or under the supervision of) a Licensed Building Practitioner (LBP) holding a licence in the applicable Area of Practice (AOP).RBW is limited to the structure, weatherproofing and fire safety of small/medium housing projects. The attached flowchart (“is it Restricted Work”) will answer most issues about whether a project (or part of it) involves RBW. More detail can be found on the MBIE website.Only carpentry, brick and blocklaying, foundations, roofing and external plastering trades are included in the licensing scheme, and there are various AOPs depending on skill sets within those trades.The design licence has AOP1 which relates to Category 1 buildings (simple houses), AOP 3 which relates to Category 3 buildings (complex buildings over 10M high), and AOP2 which is everything in between. Architects are deemed to have a design license AOP 3 so do not need to apply to be an LBP. Only AOP3 designers can be involved in the observation or administration of building contracts.The design, consenting and contract administration processes are shown on the second attached flowchart (“If it is Restricted Building Work”). The basic issue is that RBW done by LBPs must be identified by “memorandums” provided to the BCA and the owner.For the design of RBW, the requirements will be met for all projects if an architect “signs off” the documentation. Where a design office is not run by an architect, whoever signs the memorandum must hold a licence in an AOP (1,2 or 3) applicable to the work done.During construction, the contractor needs to get the memorandums from subbies, and contract administration procedures will need to ensure that RBW verification is available for a CCC.Providing those tasks are actioned, we see no appreciable affect on potential liability. However, considering the duties owed to others in tort and in contract, the memorandums may streamline a potential claim for defective work: an intelligent reader could make a fair guess about what else was under the control of that person. Although staff may be keen for recognition as an LBP, signing a memorandum may bring unwelcome personal liability.Although licensing is only required for RBW, designers and tradespersons may seek it for marketing advantage or skills recognition. Owners and clients may seek it for assurance of acceptable outcomes. An LBP is required to work within their competencies, and to maintain them on an ongoing basis. The Building Practitioners Licensing Board deals with complaints against LBPs, and they have various penalties available. A complaint about an architect will be transferred to NZRAB.Note that the requirement to supply a memorandum is a statutory one, independent of contract, and thus there are no valid grounds on which the memorandum could be withheld as leverage against unpaid money. In all the claims brought before them where the builder has with-held the ROW as leverage for getting paid, the Building Practitioners’ Board has imposed a fine and costs.
