How Building Charges are Calculated

Building consent charges are set at a level intended to cover the actual or likely costs incurred by Council in determining compliance with the Building Act 2004 and the New Zealand Building Code.  Fees are reviewed each year and adjusted to reflect the likely costs.

The fees are intended to cover the administration, technical processing and inspection costs associated with each application.  Additional costs charged to the applicant may arise as a result of the application requiring a peer review by a structural engineer, the New Zealand Fire Service, or an assessment by a technical expert, for instance a geotechnical engineer.

The inspection fee is an estimate based on the minimum number of inspections and other technical inputs needed for the project type.  Inspections are charged on the actual time spent on site, plus travel costs.

Fee components

• Levies payable to BRANZ, calculated at $1.00 per $1,000 of the project value for buildings of value over $20,000.
• Levies payable to Department of Building & Housing, calculated at $1.97 per $1,000 of the project value for buildings of value over $20,000.
• Administration fees.
• Processing (time based).
• Inspections (type and number vary depending on the nature of the building project).
• Code Compliance Certificate fees.
• Compliance Schedule fees.
• Development or Financial Contribution fees.
• Insurance costs.

You will be charged fees applicable to your project.

Payment of fees

You will be invoiced when the consent has been granted (this will include estimated inspection fees); the consent will not however be issued until the required fees have been paid.

A further invoice may be issued when the Code Compliance Certificate is ready for issue.  In some instances a refund may be issued where a summary of all costs and work completed determines this is appropriate.  Additional costs will need to be paid before a Code Compliance Certificate will be issued.

Cancellations

You may withdraw or cancel your application for building consent at any time.  When an application is withdrawn before the consent is issued and fees are outstanding, an invoice for the progress payment may be sent to the applicant or agent, depending on who the nominated debtor is.  Likewise, you may be eligible for a partial refund of fees paid.

What causes additional costs?

Projects can vary greatly in both the number of inspections and the length of time various types of inspections take. Variables that affect inspection costs include:

• How the job is organised. For example, building work on steep slopes might require two or more foundation inspections.  Staged jobs may require a separate range of inspections for each stage.  Jobs that progress very slowly without good communication with the Building Officers can create additional inspections because of the need to check progress.
• Complexity and/or the materials used.  Complexity can add to the time on site and the number of inspections. For example, coated face claddings can typically increase the number of inspections needed.
• Simple buildings such as sheds or garages that are lined or have plumbing and firewalls.  This adds to inspection work.
• Builder competency.  Some builders need more advice and direction than others and this may result in more time being spent on site, adding to costs.
• Re-inspection.  Not being ready for a pre-booked inspection or failing an inspection will mean that the work needs to be re-inspected.

Costs can also vary by:

• The number of amendments.  Amendments add costs as they each have to be formally lodged, checked and approved and may also require additional inspections to be completed.
• In our experience, applicants may undervalue the work proposed.  The value given is used to update the value of improvements of your property, which prospective purchasers refer to.  Rates are unaffected as they are based on unimproved value.

It is possible to have a great deal of variation in costs which are very difficult to predetermine.  Actual costs will be invoiced.

Extraordinary building jobs

There are special cases involving jobs that are different to the normal range of work in a particular category, or are not a good fit in any of the fee categories (e.g.: a circus marquee or a telecommunications tower).  Where a Building Officer agrees this is the case, the inspection may be adjusted to suit the circumstances.

Refer to Council’s Fees and Charges section for further information.