At BuildNZ this year, Combined Building Supplies (CBS) chairman Carl Taylor sat down for a chat about the industry’s biggest talking points, and one issue kept coming up: the Government’s proposed building warranty legislation, and what it actually means for builders who aren’t part of Master Builders or Certified Builders.

“It’s not going to be a simple situation,” Taylor said. “I think there’s some problems with the proposed legislation.” His concern is specific: builders who are not members of either of the two main building associations, and what pathway they will actually have to offer a warranty product once the new rules take effect.

It’s a fair question, and one a lot of independent builders won’t have thought through yet. Here’s what the reform actually says, why the gap Taylor is describing exists, and what your realistic options are.

What the Building Amendment Bill actually requires

The Government is progressing changes to the Building Act through the Building Amendment Bill, which is expected to move through Parliament during 2026. Once it takes effect, likely from 2027 after a roughly 12 month implementation period, the Bill will require a home warranty on:

• All new residential builds of three storeys or less
• Renovations of $100,000 or more that involve restricted building work and a building consent

The warranty itself needs to cover all defects for the first year and structural defects for a full ten years. This sits alongside a wider shift in the Building Act, moving from the current “joint and several” liability model (where a homeowner can often fall back on the local council to cover the full cost if other parties are no longer around) towards a “proportionate liability” model, where each party only carries their own share.

That shift is the real driver behind the warranty requirement. If a council is no longer the guaranteed last resort, homeowners need another form of protection sitting underneath the build. You can read the current wording of the implied warranty provisions in the Building Act 2004, and MBIE’s building performance guidance for the latest official detail as the Bill progresses.

Why this matters more if you’re not in Master Builders or Certified Builders

The current warranty pathway problem

Right now, there are really only two well-established routes to offering a compliant home warranty in New Zealand. You join Registered Master Builders and offer the Master Build Guarantee, or you join New Zealand Certified Builders and offer the Halo Residential Guarantee. Outside of those two association-linked products, there is currently only a small number of independent, insurance-backed providers offering comparable ten year cover.

That’s a fine setup if you’re already in one of the associations. It’s a much murkier one if you’re not, and a large share of New Zealand’s small and medium building businesses aren’t. Once the warranty requirement becomes law, a builder without a clear pathway to a compliant product isn’t just missing a nice-to-have. They may struggle to take on eligible residential contracts at all.

What Carl Taylor raised at BuildNZ

This is exactly the gap Taylor flagged. As chairman of CBS, a nationwide building supplies cooperative built around levelling the playing field for independent and small to medium builders, he’s speaking from a position that represents a lot of exactly this kind of business. His point wasn’t that the warranty requirement itself is a bad idea. It’s that the legislation, as currently proposed, doesn’t spell out a clear pathway for builders outside the two main associations.

That’s a genuine policy gap rather than a scare story. It’s also the kind of detail that’s easy to miss in general coverage of the reforms, most of which is written for a broad trade or legal audience rather than specifically for the builder trying to work out whether this affects them.

What options exist right now?

If you’re currently outside both associations, there are three realistic paths, and it’s worth understanding all three before deciding which one suits your business.

Joining an association

Joining Master Builders or Certified Builders remains the most established route, and it comes with a compliant warranty product attached (Master Build Guarantee or Halo Residential Guarantee respectively). It’s worth weighing up membership costs and requirements against what you’d otherwise spend securing independent cover, since for some businesses this may end up being the more straightforward option.

Independent, insurance-backed warranty providers

A small number of independent providers already offer insurance-backed, ten year home warranty cover outside the association system. This is a genuine option today, though it’s worth checking cover limits, backing, and cost carefully, since this part of the market is still relatively new and thin compared with the two long-established association products.

Waiting for new providers to enter the market

Because the warranty requirement is expected to create real demand, more providers are reportedly preparing to enter the market before the 2027 deadline. Waiting is a reasonable short term position if you have time on your side, but it’s not a strategy on its own. You still need a plan for what you’ll do if a suitable option hasn’t appeared by the time the law takes effect.

What this means for CBS members:

This is exactly the kind of issue CBS exists to keep an eye on for members. We’re not a warranty provider ourselves, and we’re not going to tell you which of the three paths above is right for your business. But we are tracking how this legislation develops, and we’ll keep members updated as the picture becomes clearer, including if Carl Taylor’s concerns get a direct response from Government or from the associations themselves.

If you’re an independent builder trying to plan ahead of 2027, being part of a co-operative that’s actually watching this space, rather than finding out about changes after the fact, is worth something on its own.

Frequently asked questions

Does the new warranty law apply to renovations as well as new builds?

Yes. As currently proposed, it applies to new residential builds of three storeys or less, and to renovations of $100,000 or more that involve restricted building work and a building consent. Smaller renovation jobs are not expected to be captured.

Do I have to join Master Builders or Certified Builders to comply?

Not necessarily, but right now those two associations offer the most established compliant warranty products. If you’re not planning to join either, you’ll need to source cover through an independent provider or wait for new options to enter the market before the requirement takes effect.

Is the 2027 start date confirmed?

Not yet. The Building Amendment Bill is expected to be introduced during 2026, with a roughly 12 month implementation period before the requirements take effect. Treat 2027 as the current expected timeline rather than a locked-in date until the Bill has passed.

What happens if I don’t have a compliant warranty in place by the deadline?

The detail is still being worked through as the Bill progresses, but the clear intent of the reform is that eligible residential building work will need a compliant warranty in place. Builders should plan to have a pathway sorted well before the deadline rather than leaving it until the requirement is already in force.

Where to go from here?

The building warranty reforms are moving from proposal towards law, and the gap Carl Taylor raised at BuildNZ is a real one for a lot of independent builders. The most useful thing you can do right now is understand where you sit (in an association, with an independent provider, or in neither) and start weighing up your options before the requirement becomes unavoidable.

If you want the backing of a nationwide co-operative built specifically for independent and small to medium builders, you can find out more about CBS membership and how we support members through changes like this one.

Frequently asked questions

What is the RMA reform CBS is referring to?

It refers to the Government’s proposed changes to the Resource Management Act, aimed at simplifying New Zealand’s planning system to improve housing affordability and reduce development barriers. CBS has publicly welcomed the intent of these reforms.

Does CBS oppose the RMA reforms?

No. CBS has been explicit that it supports the direction of the reforms and wants to help shape them constructively, rather than oppose them. Its concern is that small, independent builders are properly included in that process. See CBS’s full position in its 2026 Election Manifesto.

Why is CBS concerned about builders moving to Australia?

CBS has flagged retaining skilled builders and apprentices in New Zealand as one of its seven manifesto priorities, arguing that reducing compliance costs and improving conditions for independent builders here is directly connected to whether the industry keeps losing people to Australia. CBS’s own recent expansion into the Australian market gives it a direct view of the comparison.

How can builders have input into these reforms?

CBS Co-op has said it is encouraging all political parties to engage with its manifesto, and members are able to feed into CBS’s ongoing advocacy work directly. Details are available on CBS’s advocacy page.

Where to go from here?

This is another live policy conversation heading into the 2026 election, and CBS has made it clear it plans to keep pushing both threads, planning reform and workforce retention, through the campaign. If you’re a small or independent builder, it’s worth keeping across how this develops rather than assuming these conversations are happening without you.

You can read CBS Co-op’s full manifesto and follow its ongoing advocacy work on the CBS advocacy page.