Most builders know changes to liability in the building sector are coming in 2027. Fewer have thought through what that means for the jobs currently on their books, the ones that will be completed and signed off well before 2027 arrives.
The short version: the documentation you create on every job today is the evidence that determines your exposure in any dispute that comes later. That was always true to some extent. From 2027, it becomes significantly more consequential.
What is the liability change and why does it matter?
New Zealand's construction sector currently operates under joint and several liability. Under this model, if something goes wrong on a building project and a claim is made, any one party can be held responsible for the full cost of remediation, regardless of what proportion of the problem they actually caused.
From 2027, the government is moving to a proportionate liability model. Each party will carry their own share of the defective work, defined by what they actually did, how they did it, and what the evidence shows.
For builders, this sounds like good news. And in many cases it is. But the shift to proportionate liability doesn't reduce the importance of documentation. It increases it.
Under joint and several liability, the question in a dispute is often about who has the deepest pockets. Under proportionate liability, the question is about what each party did and what the evidence shows. The party with the clearest, most complete documentation of what they built and how they built it is in the strongest position, regardless of what anyone else on the job did.
What counts as documentation in a proportionate liability dispute?
The evidence that defines your share in a building dispute includes:
1.Consent amendments for on-site variations.
If you made a change on site, even a technically correct one, without capturing it in a consent amendment, the gap between what was consented and what was built becomes a question mark. A question mark under proportionate liability can become a cost.
2.Producer statements held at each inspection stage.
Producer statements confirm that specific aspects of work meet the Building Code. Holding them at each stage is evidence of a properly managed build. Missing them is evidence of a gap, regardless of what the work actually looks like.
3.As-built records.
A record of what was actually built, not just what was consented, is the reference point against which any complaint about the work is assessed. Where as-built records don't exist, the assessment starts from a position of uncertainty.
4.Records of Work for exempt building.
With the expansion of Schedule 1 exemptions in 2026, more work is proceeding without formal council oversight. Records of Work confirm the exempt work was carried out by the right person to the right standard. Without them, exempt work has no paper trail.
5.Inspection records showing sign-off at each stage.
A complete set of passed council inspections is one of the strongest records a builder can hold. A pattern of declined inspections, or gaps where inspections should have happened, is one of the weakest.
The jobs on your books right now
The 2027 changes don't only apply to work that starts in 2027. They apply to disputes that arise from 2027 onward, which includes work being done today that is completed, signed off, and then questioned later.
A building project started and completed in 2025 or 2026 can be subject to a claim for years afterward. Under the 2027 framework, that claim will be assessed on the basis of proportionate liability, which means the documentation created during the build is the evidence that defines your share.
The builders who are best protected by the 2027 changes are the ones who already document everything correctly. For those who don't, the change from joint and several to proportionate liability doesn't offer the protection it appears to, because without clear documentation of what was done and by whom, a proportionate share is harder to establish and defend.
What to address on current jobs
If you have active jobs where the documentation isn't complete:
Consent amendments for any on-site variation not yet captured.
Lodge them now, before the inspection that covers the varied work.
Producer statements for stages already completed.
If a stage has passed inspection and producer statements weren't held, get confirmation from the relevant party now while the work is still accessible and the job is still active.
Records of Work for any exempt building on the job.
If exempt work has been carried out, the Record of Work should exist before the job closes out.
Outstanding CCCs on jobs where work was completed.
An open building consent with no CCC is a compliance flag that sits on the property file and grows more difficult to resolve as time passes.
How Project-X works with builders on documentation
Project-X works with builders during active jobs, not just when something has gone wrong. Pre-inspections before council visits, consent amendment support, Records of Work and Records of Exemption, and compliance documentation reviews are all part of what the team does on live projects.
The team is made up of ex-council inspectors and building processors with 15 years of combined prior council experience. The documentation standard they work to is the standard council actually applies, because they applied it from the inside.
If you have active jobs where the compliance record isn't where it should be, address it now. The jobs on your books today are the ones that define your position under the 2027 framework.
When do the proportionate liability changes come into effect in NZ?
The government confirmed the shift in December 2025, with the proportionate liability model expected to take effect in 2027. Specific implementation details are still being finalised, but the direction is confirmed.
Does proportionate liability protect builders from all claims?
Not automatically. It limits exposure to the proportion of the problem a builder is actually responsible for, but establishing that proportion requires documentation of what was built, by whom, and to what standard. Without clear documentation, proportionate share becomes contested.
What is a Record of Work in NZ building?
A Record of Work is a document prepared by a Licensed Building Practitioner confirming the restricted building work they carried out and that it was done in accordance with the Building Act and relevant standards. It is a legal requirement for certain types of work and becomes an important part of the compliance record on any job where restricted building work is performed.
Documentation Gaps on Current Jobs?
Get your compliance record in order now, before 2027 makes incomplete paperwork more costly.
Get Professional HelpContents
Need a Straight Read?
Review documentation gaps on your current jobs before they become exposure.
Get Free Consultation