Building costs set to rise

It's about to cost more to build a house in Rotorua.
In a move that will affect about 2000 people and businesses annually, the Rotorua District Council plans to increase building consent fees to cover the cost of complying with new legislation.
Fees are set to rise between $5 and $500 so the council can employ extra staff to administer new regulations governing the building industry.
Increases will affect all consents including new homes being built, renovations or added features like a deck or swimming pool as well as commercial consents.
In the past two years more than 2000 a year have applied for building consents in Rotorua. Between July and February, 1217 building consents were issued.
An additional fee known as a PIM (Project Information Memoranda) fee which covers inspection of properties for stormwater drainage and the availability of services including power and water is expected to increase by between $5 and $170.
At present building consent fees in Rotorua range from $95 to $700. The new fees range from $115 to $1200.
In comparison, for someone to lodge a building consent application in Tauranga costs $200 to $1000, plus an additional $110 administration charge. There are also further charges. All charges are expected to go up but the figures are still subject to council approval.
Rotorua Master Builders Association president Adam Stevens said the building consent fee hike was unfortunate.
"It will increase the cost of building in an already inflated market," he said.
Members of the association were to discuss the proposed increase at its annual meeting last night and plan to send a submission to the council opposing the fee increase.
However, Mr Stevens said he also believed the increase is warranted as "it promises to speed up the process which means improved services for builders and home owners".
From November 30, territorial and regional authorities must be audited and accredited as Building Consent Authorities before they can undertake any building consent processing, inspections and approvals.
The changes come in the wake of problems such as the consenting of leaky homes and substandard building work and are part of the Building Act 2004.
The Rotorua District Council has been forced to increase its building consent fees to cover the additional costs in becoming accredited which will include employing an additional three staff.
The council's director of environmental services, Nigel Wharton, said the criteria involved in accreditation included having enough staff to issue building consents. Under the new legislation staff will need to have a certain standard of training and education.
If the council's building services department is not accredited it will not be able to issue building consents and will have to look at alternatives like relying on a neighbouring local authority.

Department of Building and Housing deputy chief executive Bruce Girdwood said he understood the accreditation process was hard work and that time was running out.
However, there had been extensive consultation with councils and Mr Girdwood had not seen evidence that councils would not meet the November deadline.
Submissions, which are part of the council's annual plan process, close on May 7.