Using the Product Assurance Framework to Support Building Code Compliance A Guide for Manufacturers and Suppliers of Building Products April 2010

Contents 1.

Foreword…………………………………………………………………………

1

2.

Introduction………………………………………………………………………

2

3.

Your roles and responsibilities ………………………………………………..

3

4.

Product Assurance………………………………………………………………

6

5.

The Product Assurance Framework…………………………………………..

7

5.1 5.2 5.3 5.4 5.5 5.6 5.7

What is it?......................................................................................... Introduction to the options ……………………………………………. Technical information ………………………………………………….. Independent assessment……………………………………………… Industry-based schemes ……………………………………………… Appraisals ……………………………………………………………… Product certification ……………………………………………………

7 9 11 12 12 13 14

6.

Product Technical Statement – a new approach……………………………

16

7.

Demonstrating performance…………………………………………………..

18

7.1 7.2 7.3 7.4 7.5

A decision tree ………………………………………………………… Working towards compliance ……………………………………….. Evidence of compliance ……………………………………………… Case Study 1 – Structural steel brackets …………………………… Case Study 2 – Bricks …………………………………………………

18 19 22 23 25

8.

Choosing the best option for you ……………………………………………..

26

9.

Non-compliance and the law…………………………………………………..

28

10.

Appendices ……………………………………………………………………… 31 10.1 10.2 10.3 10.4

11.

The New Zealand Building Code clauses…………………………… Durability (clause B2) versus Product Warrant…………………….. Sample Risk Assessment Framework………………………………. The Building Regulatory Environment – an overview………………

31 32 38 40

Resources……………………………………………………………………….

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This Guide has been prepared by the Department of Building and Housing as general guidance only. It is not a substitute for professional, independent technical advice.

1. Foreword The Government is focussed on lifting New Zealand’s economic performance for growth in a capital constrained environment. The building and construction sector plays an important role and has scope to lift its productivity, skills and performance. Reducing regulatory costs without compromising building quality for a streamlined building system is central to achieve progress.

Manufacturers and suppliers of building products will be assisted by a clear system to demonstrate that their products are fit for purpose in New Zealand conditions.

The introduction of a Product Assurance Framework is an important part of achieving that building quality system by making it easier and faster for building product suppliers and users to demonstrate compliance with New Zealand building requirements.

The framework should result in efficient and effective options for assurance for current building products and for those products that are imported or launched into the market.

Certainty about products helps with informed choice and better decision-making. The Product Assurance framework contributes to this certainty and provides better results on the ground with innovative and appropriate use of building products and systems.

1

2. Introduction The purpose of this Guide is to assist you, the manufacturers and suppliers1 of building products in the New Zealand market, to understand the benefits and responsibilities around providing products that are Building Code compliant and therefore fit for purpose within the New Zealand building environment. The Guide suggests ways you might meet your responsibilities and gain general acceptance for your product.

The Guide introduces a product assurance framework that outlines options for achieving product assurance and demonstrating Building Code compliance.

Products that carry that level of assurance should inevitably gain greater market acceptance and recognition as building owners, designers, builders and building consent authorities will have greater confidence in the product and the technical information provided.

A risk assessment tool has been included to help you determine the level of risk associated with your product. Case studies and other resources, including a decision tree, illustrate how product assurance and Building Code compliance relate to different situations. The Guide also explains New Zealand’s building regulatory environment and compliance requirements.

It is hoped this Guide will improve your general understanding of product assurance and how Building Code compliance leads to better decisions by everyone involved in the building process.

Therefore the Guide will be of interest to other parties involved with selecting or assessing building products requiring Building Code compliance, including building designers, specifiers, builders, building owners and building consent authorities.

1

For the purposes of this Guide ‘manufacturers and suppliers of building products’ also includes importers, distributors, direct marketers, trade merchants and retailers. The Guide uses manufacturers and/or suppliers as the general reference terms.

2

3. Your roles and responsibilities As manufacturers, you have a key role to play in ensuring your building products are Building Code compliant. As suppliers you need to ensure that the evidence to demonstrate Building Code compliance accompanies the product to market.

The following audiences need to be kept in mind when demonstrating Building Code compliance, as they each have a decision-making role in the building process: •

Building owners

•

Building designers (including architects, engineers and specifiers)

•

Builders (and specialist trades)

•

Building consent authorities (BCAs).

A product’s selection is likely to depend on easy access to sound technical information, enabling building designers to confidently specify that product as part of a building, and builders or specialist trades to adequately install it.

Every building is unique, and is composed of many thousands of products. Even supposedly ‘simple’ buildings are highly complex. It is important you understand how and where your product will be used in a building.   Familiarise yourself with the Building Code so you can identify those clauses which are relevant to the products you supply. You should also understand whether they form part of an ‘Acceptable Solution’ or an ‘alternative solution’ for each of the relevant Clauses. (Section 10.1 contains a list of the 35 clauses of the Code.)

Product promotional material and product warranties have their place, but building designers, builders, specialist tradesmen and BCAs require factually-based product performance claims and supporting technical information. This should include information about how your product performs in different New Zealand conditions (eg, wind zones, corrosion zones, and high levels of UV exposure) and the effect of these conditions on the life of your product.

3

These claims may be backed up by the results of independent product testing and/or certification; certification of Quality Management Systems (ISO 9001); and/or a history of successful manufacture, sale and use in relevant situations or markets.

You should also look at your building product in the context of the system of which it forms part, not just the product in isolation. This approach is critical when determining which assurance option to choose. For example, for a plywood product, consider not just the plywood but also how it integrates with the building wrap, the cladding and the window system.

A product’s technical information should also cover the ongoing maintenance necessary for the product to continue to comply with its required durability period under the Code. This information needs to be suitable for use by the current and subsequent building owners. In some situations such as exposure to the elements, a product may require repainting, recoating or even re-application in order to achieve its stated life and to meet the durability requirements of the Building Code (see Section 10.2).

If regular maintenance is important for the ongoing performance of your product, your technical information should make this very clear.

4

Before introducing a building product to the New Zealand market, first establish how your product will be used and whether it needs to comply with the New Zealand Building Code, then decide which Code clauses are relevant. Most building products have to satisfy at least three requirements of the Building Code – the performance claimed (eg, G12/AS1 Water Supplies), Durability (B2), and Hazardous Building Materials (F2). At a minimum, any compliance claim must be supported by: •

Relevant technical information (as opposed to marketing material and product warranties)

•

Clear technical installation information and support for design and build

•

A ‘Scope of Use’ stating any conditions and limitations relating to the product’s use

•

Clear information on how to maintain the product or system.

Technical opinions and test reports may also be required to prove compliance.

To prove Building Code compliance, all claims must be backed up by adequate technical information, including relevant reports and opinions.

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4. Product Assurance As a manufacturer or supplier of building products, you may not be aware of the need for building products to comply with a performance-based Building Code, or ‘Where to start?’ with ensuring product compliance is achieved.

The term ‘product assurance’ describes the overall system that product manufacturers or suppliers can use to establish and prove compliance with the performance requirements of the Building Code.

Like all participants in the building process, those involved in manufacture or supply have two choices: 1. Provide products that perform according to the methods set out in a Compliance Document ie, as part of an Acceptable Solution, or, where your product does not fully comply as an Acceptable Solution 2. Look at other ways to show your product has met the performance requirements of the Building Code, ie, as part of an alternative solution.

In both cases, evidence of compliance is required.

New Zealand Building Code

CRITERIA: Performance requirements of the Building Code

CRITERIA: Compliance documents, cited Standards and other documents

Evidence to demonstrate performance

Evidence to demonstrate performance

Alternative Solutions

6

Acceptable Solutions Verification Methods

Assurance is all about providing evidence that is sufficiently reliable for anyone to use. Reliable evidence provides users with the confidence to make effective decisions.

5. The Product Assurance Framework 5.1

What is it?

The purpose of the product assurance framework is to describe the options available to building product manufacturers and suppliers to demonstrate a product’s compliance with the Building Code. The framework shows five generic assurance options – product technical information, independent assessment, industry-based schemes, product appraisals, and a product certification scheme (branded CodeMark).

Product certification Appraisals Industry-based schemes Independent assessment Technical information

Demonstrate compliance with the New Zealand Building Code

The New Zealand Product Assurance Framework

The options are not mutually exclusive, and you may need to pursue more than one to reach your ultimate destination - demonstrating compliance with the New Zealand Building Code. You may also find that your chosen option includes elements of other options. Technical information underpins all the options, and could include test results from an in-house or independent body eg, a testing laboratory. 7

The framework’s triangular shape reflects the number of products expected to use each option.

The majority of products should require less extensive forms of assessment (the base of the triangle) to prove Building Code compliance. This group may include products that have been in use in New Zealand for many years and which have a strong history of successful performance in the New Zealand building environment. It may also include products where the consequences of product failure have been assessed as low.

In contrast, fewer products will require assessment using the options shown near the apex of the triangle (options such as appraisals and product certification) to prove compliance. These products may include new or innovative products, products where a manufacturer perceives a competitive marketing advantage by using a particular option or products where the consequences of failure have been assessed as high.

There is always cost and time involved with each option and is part of the investment of gaining product assurance. These factors will vary depending on the product, existing technical evidence, newness to the market, etc.

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5.2

Introduction to the options

Product technical information •

Typically product information supplied directly by the manufacturer or supplier. It differs from advertising brochures and other marketing material, including product warranties, as it focuses on technical detail.

•

Includes quality assurance systems, product specifications, scope of use, and installation requirements. It enables designers and builders to correctly specify and install your product. It also covers maintenance requirements, which is important information for building owners.

•

Often includes test results for the product.

Independent assessment •

The verification and endorsement of manufacturers’ product information by independent and competent product assessors eg, Chartered Professional Engineers or recognised testing laboratories.

Industry schemes •

May be product-family based eg, ready-mix concrete or glass.

•

Some schemes are sector based eg, the BCRS – Building Code Review Service – being developed by BOINZ (Building Officials Institute of New Zealand)

•

Products are assessed by a recognised organisation against specified industry requirements.

•

Industry scheme assessments are self-audited.

Appraisals •

Involve extensive testing and verification by an independent third party.

•

Testing and verification is independent of the product manufacturer or supplier.

•

An appraisal examines all aspects of a product, including manufacture, supply and installation.

•

The output of an appraisal is a ‘technical opinion’.

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•

Appraisals require ongoing revalidation.

All the above options provide support for building consent applications, but it is important to note that the evidence of compliance you supply may not be accepted by BCAs.

Product certification (CodeMark) •

A statutory scheme.

•

Products can be certified as compliant with one or more specific clauses of the Building Code.

•

Only certified products can display the CodeMark brand.

•

CodeMark certified products must be accepted as compliant by BCAs, where used according to any conditions and limitations on the Product Certificate.

The options are explained in more detail on the following pages.

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5.3

Technical information

Good technical information for the New Zealand market addresses the needs of designers, specifiers, builders, building owners and BCAs. Key elements of technical information include: •

Description: a short description of the product – what it is and its intended use.

•

Language: instructions in plain English. Use clear sentences and diagrams.

•

Design Instructions: clear statements to help designers successfully integrate the product with other products, producing a compliant building system.

•

Construction Instructions: clear instructions to assist builders and trades successfully install the product. Clear statement outlining when an approved installer must be used.

•

Maintenance requirements: guidance for the building owner to effectively maintain the product. Clear statements describing potential consequences if specified maintenance is not carried out.

•

Test Results: details of any tests carried out on your product, and what those tests showed.

•

Quality Assurance: information about any measures in place to ensure consistent production quality. May include a statement of acceptable variations.

•

Product Support: contact details, ideally in New Zealand, for organisations able to provide product advice and support.

Imported products may have an international pedigree, but they must be specifically assessed and/or tested against the performance requirements of the New Zealand Building Code to meet local conditions.

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5.4

Independent assessment

As a manufacturer or supplier, you will typically undertake your own product testing and analysis. The outcome of these investigations should be incorporated into your fact-based technical information for the product.

An independent assessment reviews and verifies the technical information provided by the manufacturer. The assessment is carried out by a suitably competent or qualified person or organisation.

The best way to record this independent assessment is for an endorsement to be added to the technical information you provide.

5.5

Industry-based schemes

Industry-based schemes are voluntary, and work well for families of products. Manufacturers who belong to such a scheme are responsible for ensuring their products comply with the requirements of the scheme as assessed by the industry organisation.

Products are assessed by the industry organisation against specified and audited industry requirements. Examples include ready-mix concrete by members of the NZRMCA2 and glass certified by the IGUMA3. Attributes of an effective scheme are: •

Publicly available rules which outline the framework of the scheme.

•

A regular and publicly available programme of independent audits of compliance.

•

Clearly stated penalties that will be applied should there be a breach of scheme rules, governance or expected quality of a product or system.

2 3

New Zealand Ready Mixed Concrete Association Insulating Glass Unit Manufacturers’ Association

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•

A governance structure consisting of industry, user and independent representatives who have a continuing role of ensuring the scheme’s ongoing integrity.

5.6

Appraisals

An appraisal is a technical opinion of a building product or construction system’s fitness for purpose. Usually undertaken by an independent body, an appraisal assesses a product against a wide range of performance factors, including the requirements of the Building Code, performance under

test

conditions,

in-service

performance,

New

Zealand

Standards

specifications, accuracy of the product’s technical information, and manufacturing procedures and quality control systems.

Where a product performs over and above the performance requirements of the Building Code, a statement to that effect will be included in the appraisal.

Appraisals generally include extensive testing and verification of Building Code compliance by a third party (ie, independent of the manufacturer or supplier).

A product appraisal will include appraisal of any specific installation systems and/or processes relevant to that product, and will recognise limitations on a product’s intended scope of use.

An appraisal may follow a standard assessment process for products with few or no innovative features (such as window frames), or may be specifically designed to test an entirely or partially new or innovative building product, construction system or feature.

An appraisal organisation will: •

Be independent from the product’s manufacturer or distributor, so that test results and appraisal outcomes are completely unbiased and reliable.

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•

Have thorough and validated (accredited) product testing procedures and processes in place, such as IANZ accreditation, and suitably qualified testing and analysis personnel, such as engineers and research scientists.

•

Undertake or require regular inspections to ensure product conformity during manufacture, and conformity of product performance once in use.

You may choose to have a product appraisal undertaken by an appraiser from outside New Zealand, but it is recommended that your product be tested against the New Zealand Building Code for compliance in the New Zealand market.

5.7

Product certification

Product certification for building products in New Zealand was established by the Building Act 2004, and is administered by the Department of Building and Housing. Product certification has been jointly developed with the Australian Building Codes Board. This voluntary scheme operates under the brand name of ‘CodeMark’, which is recognised in both Australia and New Zealand. It is designed to streamline and speed up the building consent and inspection process by avoiding repeated assessment of products that have proven Building Code compliance.

Product certification may be the best route for a manufacturer or supplier to take where a product is new to the market, is highly innovative or novel, or where there are significant consequences if a product fails.

The product certificate issued by a Product Certification Body provides independent confirmation that a building product complies with the Building Code. Information contained in or referenced on the product certificate provides clear guidance about how to specify and install the building product or system to ensure it complies with the Building Code clauses for which compliance is claimed.

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The scheme provides benefits across the industry for product manufacturers and suppliers, builders, designers and architects, engineers, building consent authorities (BCAs), and homeowners. These include: •

Proven compliance with the performance requirements of the stated Building Code clause/s.

•

Assurance that the product is manufactured to a consistent level of quality.

•

Confidence that ongoing product support is available.

•

Acceptance of new or innovative products, and products with significant or major consequences should product failure occur.

•

Confidence that a certified product or method will be accepted nationally by all BCAs.

•

Streamlining of the building consent and inspection processes (improved efficiency).

•

Ability to use the ‘CodeMark’ brand as a marketing advantage.

While a building consent will still be required, all BCAs must accept the product certificate as proof of Code compliance (where the product is being used in accordance with the certificate and its instructions).

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6. Product Technical Statement – a new approach oduct Technical Statement – a In Section 5.3 of this Guide we listed the topics good technical information covers. However, this may not cover everything needed to demonstrate compliance with the New Zealand Building Code.

To help bridge this gap, we recommend you create a Product Technical Statement (PTS). This new approach is intended to promote consistent and comprehensive product information for the New Zealand market. Using a PTS will assist all the audiences referred to earlier to select, specify and accept your product.

A PTS is in addition to good technical information and should include the following: •

Statement of Building Code compliance: a clear statement of the New Zealand Building Code clauses that relate to your product and a selfdeclaration4 of compliance with the performance requirements of those clauses.

•

Scope of use: a statement using recognised New Zealand terms (eg, high wind, seismic and corrosion zones) that outlines the product’s scope of use, including any conditions or limitations on its use.

•

Consenting instructions: any statements useful to a building consent authority (BCAs) to assist it in making decisions about the compliance of building work that uses your particular building product or construction system.

The PTS should accompany your technical information and cross reference any other documents that provide evidence to support:

4

•

your compliance claims, such as test reports or technical opinions

•

the use of your product, such as installation or maintenance manuals.

An internationally recognised term for a manufacturer’s assertion of conformity

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Ideally, supporting documents should be uniquely identifiable by date or version number to avoid any possibility of confusion.

Gain the maximum benefit from your PTS by making sure it is readily available to everyone involved in the building process. Assertions about compliance and a detailed scope of use will assist building designers to specify your product and BCAs to assess building consent applications for work where your product has been specified.

Easy access to supporting documents will allow builders to correctly install your product, and building owners to correctly carry out any maintenance required to ensure your product meets its compliance claims.

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7. Demonstrating performance 7.1

A decision tree

In order to systematically work through the process of demonstrating compliance against the Building Code there are a number of questions you need to answer. This decision tree assists by outlining those questions and shows where your answers might lead you.

No

Does my product need to comply with the Building Code?

No further action needed. Consumer protection provisions found in other legislation (see Section 9) will still apply.

Yes

It is an Alternative solution. Identify and/or develop criteria to prove compliance with the Building Code

Does my product comply fully with a compliance document and associated cited Standards?

No

Yes

Evaluate product against criteria which could include: - Compliance Documents - Standards - NZ conditions - International codes and standards

Present your evidence of compliance with those documents

Does my product meet the criteria?

No

Undertake product review/redesign

Yes

Do I have all the evidence I need to show the criteria have been met? Yes

Provide evidence of compliance

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No

Obtain further evidence of compliance eg, test reports, professional opinions

7.2

Working towards compliance

7.2.1

Does my product need to comply?

The first question on the decision tree is ‘Does my product need to comply with the Building Code?’ Examples of products that would not be covered by the Building Code include kitchen cupboard door handles, architraves, curtain rails and decorative wall coverings.

If the answer is ‘no’, the consumer protection provisions found in other relevant legislation will still apply (see Section 9).

If the answer is ‘yes’, you will need to work out if your product is an Acceptable Solution or an alternative solution, and then demonstrate how it complies with the Building Code.

7.2.2

Is my product an Acceptable Solution?

If you are able to answer ‘yes’ to the question ‘Does my product comply fully with the requirements set out in the relevant Compliance Document or cited Standard within that Compliance Document?’, your product is an Acceptable Solution.

To answer ‘yes’, your product must align with all the requirements set out in the Compliance Document, and your evidence must demonstrate how it complies. Product Example 1 A company wants to import a range of backflow valves to New Zealand. They know there are several brands in the market already. Because this type of valve is widely used they expect there is a commonly accepted compliance method which might suit these imported valves as well. The company looked at the available Compliance Documents first to demonstrate these imported valves meet all the requirements of the relevant Compliance Document – in this case G12/AS1 Water Supplies.

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Product Example 1 illustrates a situation where the Acceptable Solution route is likely to be followed. A good place to start in this example is to compare all the available technical information with the Compliance Document for G12 (Water Supplies) which can be found on the Department’s website. Expert assistance may be needed to do this comparison which is where an independent assessment could help.

Case Study 1, found later in this section, explains in more detail how the Acceptable Solution approach works in practice, and how evidence is assembled.

7.2.3

Is my product an alternative solution?

If your product does not comply fully with the relevant Compliance Document it is not an Acceptable Solution, therefore it is an alternative solution.

You will need to identify or develop criteria that, if met, will demonstrate your product’s compliance with the required performance clauses of the Building Code and then evaluate your product against those criteria.

A useful approach for identifying existing criteria that may be suitable is to: •

Compare the product against an Acceptable Solution (AS) or Verification Method (VM) – as a basis to show how any deviation is compensated for or otherwise justified

•

Compare the product to another document – this could include a New Zealand or overseas Standard, other technical information, test results or research

•

Look at in-service history and performance – (of a similar product) within New Zealand or in similar conditions

•

Refer to building work previously accepted by a BCA – some designs for building work using the same or a similar product may have been previously accepted (if used in the same way) by a BCA for a specific building consent.

•

Identify relevant determinations issued by the Department – is there a determination on a situation where a similar product is specified? Although

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determinations are case-specific and therefore have a very limited application, they do provide sound guidance on application of the Building Act and Building Code at a particular point in time. (Examples include determinations 2009/104, 2009/96 and 2008/32 which are available on the Department’s website.)

Once you have completed this comparison you may find there are still gaps between the evidence you have and the evidence you need. It is likely you will need expert assistance to help you develop suitable criteria to fill the evidence gaps.

The final step is to collate your evidence and make it easily available to the audiences referred to earlier. Do not overlook your existing technical information as some of it could potentially support your compliance claims and supplement the evidence gained from your evaluation process.

Product Example 2 A company is starting to design and develop a brand new type of cladding that will be different to anything that is already available. Being new, it is probably an alternative solution. Chances are this product will need extensive technical evidence and information to convince people it complies with the Building Code. The company will need to prove compliance against a number of performance requirements of the Building Code and include all supporting technical evidence and information.

The challenge for the manufacturer in Product Example 2 is to identify or develop suitable criteria that he can evaluate the product against and gain evidence of compliance.

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7.3

Evidence of compliance

Whether your product is an Acceptable Solution or an alternative solution you will need to provide evidence to demonstrate compliance with the Building Code.

If your product is an Acceptable Solution, the criteria are clearly prescribed in the Compliance Document. If your product is an alternative solution you will need to include details of the criteria you used and how your product met those criteria.

Remember, evidence of compliance is generally around: •

Product performance – does the performance of my product comply with the performance requirements for that product type eg, a cladding that is weathertight?

•

Manufacturing controls – how can users be assured that every product made is to the same specification and quality?

•

Limitations - where, when and how can the product be used so it is fit for purpose, and are these limitations clearly stated for designers, installers and builders?

•

Maintenance – what are the requirements and their impact on ongoing performance, particularly durability?

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7.4

Case Study 1 – Structural steel brackets

Case Study 1 illustrates where a product demonstrates compliance by fully meeting the requirements of a Compliance Document: Case Study 1 A manufacturer is launching a new range of structural steel brackets for purlin, rafter, top and bottom plate and stud connections.

Step 1: establish if the product needs to comply with the Building Code The answer is ‘yes’ because the brackets are providing structural stability therefore must comply with Code clause B1 (structure). They would also be considered critical to the structure of the building throughout the building’s life (in this case, 50 years) as set out in clause B2 (durability).

Step 2: establish relevant compliance documents In this case the manufacturer identifies that the relevant Compliance Documents they need to use in order to show compliance are NZS 1170, the loadings standard in terms of B1 Structure, and NZS 3604 1999 for B2 Durability.

Step 3: provide evidence: The manufacturer assembles the following technical information • • • •

description of the products calculations and test reports precise description for the use, installation and maintenance of the products description of the company and contact details.

The manufacturer then creates a Product Technical Statement (PTS) by adding statements that clearly identify: • •

details of the Building Code clauses against which compliance is claimed detailed scope and limitations for use of the product

The manufacturer then engages an independent structural engineer who reviews the claims made in the PTS and the methods used to support the claims.

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Case Study 1 – continued The engineer referred to the Verification Method in Building Code clause B1 which identified NZS 1170 in terms of structural loadings. The engineer: • • • •

reviewed the standard and identified the relevant loadings that would be applied confirmed the key facts about the steel, in particular the grade of steel, and the thickness checked the appropriate calculations established the brackets would meet the Building Code requirements, subject to some conditions of use.

The engineer endorsed the Product Technical Statement. The endorsement included details of the engineer’s competence to undertake the review and confirm the claims made in the PTS. The manufacturer’s final task was to make sure all the information that related to the steel brackets was readily available to everyone involved in the building process. Arrangements for copies of all technical information, the PTS and the independent endorsement to accompany the product to market are made and also placed on the company website.

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7.5

Case Study 2 – Bricks

The brick case study is an example where three brick products demonstrate code compliance; one by meeting all the requirements of a relevant Compliance Document and the other two by demonstrating Code compliance as an alternative solution.

Case Study 2 A brick manufacturer has three systems on the market. The first is a standard clay brick that is fully compliant with the specifications defined in the compliance document for weathertightness (E2/AS1). To support Building Code compliance, a Product Technical Statement is supplied which outlines compliance with the Standards cited in the E2/AS1 relating to brick systems. The product is also supported by a web site that provides information to designers and bricklayers. The second is a brick that contains crushed glass and has a slightly modified tie system which the manufacturer has developed to make bricklaying more productive. As the brick material and tie system do not comply totally with the Standards cited in E2/AS1, a Chartered Professional Engineer with specialised knowledge of brick systems is employed to provide a product technical statement review. The engineer’s initial concerns were the strength of the brick and its durability. Using the Standard as a guide and making use of test results provided by the manufacturer, the engineer concludes that the performance was equivalent to an E2/AS1 compliant brick. The engineer’s endorsement of the Product Technical Statement is backed by a summary of his analysis. The third product is a brick-style system which can also act as a photovoltaic system to reduce the building’s reliance on external electricity. Because of the nature of the system; non-standard materials, different tie systems as well as a completely different assembly methodology, the manufacturer recognised that there may be challenges in proving code compliance to building consent authorities. An appraisal from a reputable organisation is obtained. To do the appraisal that organisation developed performance metrics against which it did some tests. They made extensive use of overseas standards being developed for similar systems. After the appraisal was obtained the manufacturer used the appraisal as the evidence base to apply for a Product Certificate against the New Zealand Building Code. As a new and innovative product, the Certificate was useful in gaining market acceptance. It meant that all building consent authorities had to accept the product as code compliant. The manufacturer also wanted to export to Australia and was able to use the same application to obtain certification against the relevant provisions of the Australian Building Code.

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8. Choosing the best option for you Many organisations take a risk-based approach to their decisions – commercial or otherwise. As a manufacturer, you will need to make a business assessment of the risk that your product will not be accepted by the New Zealand market as Building Code compliant, then decide how much to invest to manage that risk and still gain an appropriate return.

Choosing the best option will be based on a mix of technical and commercial factors, such as:

Technical factors •

How much the product varies from common practice and relevant compliance documents

•

The consequences of product failure

•

The service and testing history of the product in New Zealand

•

Durability of the product.

Commercial factors: •

Likely revenue from product sales

•

Cost of appropriate product assurance option(s)

•

Whether the product is new or innovative

•

Longevity of demand

•

Market perception and confidence in the product supplier and the product.

As mentioned earlier in this Guide, before your product can be used in a particular project, a building consent must be obtained. In the context of the building work covered by the consent, building consent authorities decide whether your product complies with the Building Code requirements. They also take a risk–based approach, but their perspective is a little different.

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Here are two of the questions the BCAs will ask: •

What is the likelihood the product will fail? This may include a consideration of the particular circumstances in which the product is being used on this occasion eg, high wind, corrosion or seismic zones.

•

What are the consequences if the product fails? Could someone be injured or killed? What would be the impact on other building elements if the product fails? Would failure impact on neighbouring buildings? Would the building owner suffer a loss of amenity?

The higher the BCAs perceive the level of risk, the greater the level of certainty they will be seeking that claimed compliance has been proved, before granting the consent (ie, accepting your product).

Those interested in a structured risk-based approach may find helpful the sample risk assessment matrix included in Section 10.3.

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9. Non-compliance and the law In general, where a building product or method fails to comply with the Building Code, it may fall foul of consumer protection legislation.

In New Zealand, consumers’ rights are safeguarded by the Consumer Guarantees Act and the Sale of Goods Act, which state that goods must be fit for the purpose they are made for, and must be safe and durable. For an example of how the Consumer Guarantees Act can be applied, visit http://www.justice.govt.nz/tribunals/wht/decisions-of-the-tribunal/2008-decisions Jones v Sircombe & Ors TRI 2007-100-000054/DBH 04732

Further safeguards are found in the Fair Trading Act, which prohibits misleading and deceptive conduct, false representations and unfair practices by people in trade. There are additional consumer protections under the common law of tort (negligence).

In addition, new consumer protection measures were introduced by the Building Act 2004. This Act ensures that contracts for building work on houses automatically include statutory warranties (known as implied warranties) for materials and workmanship (see 10.2). It also ensures that houses are built in accordance with the relevant plans, specifications and building consent.

Where an individual or organisation has concerns that a building product or building system has failed to meet one or more of the above criteria, they will most likely contact the supplier to seek a remedy. The supplier may take the matter up with the importer, manufacturer or marketer to come up with a satisfactory solution.

Sometimes the supplier fails to resolve the issue. The consumer can also pursue the matter by making a direct approach to the manufacturer or other parts of the supply chain. Bringing the issue to the attention of a relevant industry organisation or making the situation public through the media are also options available to them.

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A determination can also be sought from the Department as to whether the product complies with the Building Code.

The matter can be taken to the Disputes Tribunal (for claims up to $15,000, or $20,000 by agreement) or a complaint could be lodged with the Commerce Commission, which enforces the Fair Trading Act. Proceedings for a breach of the implied warranties may be taken in the District Court (up to $200,000) or High Court (over $200,000).

All of the above scenarios require the affected party to collect evidence, such as product claims made by or on behalf of the manufacturer in technical literature or marketing material, proof that the product does not meet those claims, and how this has affected the consumer eg, failed consent application or damage to the property resulting in financial loss. Evidence may also include independent technical assessments or opinions from third-parties such as a Chartered Professional Engineer.

As part of its role to monitor the sector and provide sector leadership, the Department may get involved where it becomes aware of a compliance issue or where an issue is specifically brought to its attention.

When that occurs, the Department has a number of options open to it, including reviewing and assessing the evidence provided, conducting its own investigations, acting as a mediator between the parties, and issuing guidance information or determinations.

Where none of these options results in a satisfactory outcome, and where the Department is satisfied, on reasonable grounds, that the product or method has or is likely to fail to comply with the Building Code, it may issue a warning or declare a ban in accordance with the procedure set down in Section 29 of the Building Act 2004.

The Department may issue an urgent warning or ban where an immediate and significant risk to health and safety is identified.

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Warnings and bans are considered to be actions of last resort, as the commercial consequences for a specific product, class of products or building method are significant.

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10. Appendices 10.1 The New Zealand Building Code clauses Area of Building Work

Stability Fire Safety

Access Moisture

Safety of Users

Services + Facilities

Energy Efficiency

Code Clause

B1 B2 C1 C2 C3 C4 D1 D2 E1 E2 E3 F1 F2 F3 F4 F5 F6 F7 F8 G1 G2 G3 G4 G5 G6 G7 G8 G9 G10 G11 G12 G13 G14 G15 H1

Subject

Structure Clause B2 – Durability applies to ALL products Durability – see Section 10.2 for a Outbreak of fire detailed explanation. Means of escape Spread of fire Structural stability during fire Access routes Mechanical installations for access Surface water External moisture Internal moisture Hazardous agents on site Hazardous building materials Hazardous substances and processes Safety from falling Construction and demolition hazards Visibility in escape routes Warning systems Signs Personal hygiene Laundering Food preparation and prevention of contamination Ventilation Interior environment Airborne and impact sound Natural light Artificial light Electricity Piped services Gas as an energy source Water supplies Foul water Industrial liquid waste Solid waste Energy efficiency

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10.2 Durability (Clause B2) versus Product Warranty A product warranty is usually a written promise to replace or repair a product or work, if necessary, during a specified period. Usually, the company manufacturing or selling the product provides the warranty to the buyer. Durability, on the other hand, is about people's reasonable expectations that, subject to normal maintenance, a product will last for a specified number of years.

Consider, for example, a motor car. New cars are usually sold with a 3-year warranty. This is the manufacturer's undertaking that it will accept responsibility for any faults that happen within that time. However, most people would expect a new car (based on how earlier models have performed, knowledge of the manufacturer, and the competitiveness of the marketplace) to still be on the road in 10 to 15 years, subject to normal maintenance. Therefore, 10 to 15 years is the expected durability of the new car. In this article, we explain the difference between the Building Code durability requirements and two different types of warranties for building work- product warranties and implied warranties.

Durability The Building Code sets the required durability standard for building work. Clause B2 Durability aims to ensure that buildings are durable enough so all other objectives of the Building Code are satisfied throughout the life of the building without needing reconstruction or major renovation.

Required durability periods for building elements To comply with the Building Code, building elements must, with normal maintenance, continue to satisfy Building Code performance requirements for the following periods (or the specified intended life of the building, if shorter).

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The life of the building, being not less than 50 years, for building elements: •

that provide structural stability to the building (for example, floors, walls, and fixings)

•

that are difficult to access or replace

•

for which failure to comply with the Building Code would go undetected during the building's normal use and maintenance.

The life of the building, being not less than 15 years, for building elements: •

that are moderately difficult to access or replace (for example, the building envelope, exposed plumbing in the sub-floor space, and in-built chimneys and flues)

•

for which failure to comply with the Building Code would go undetected during the building's normal use, but would be easily detected during maintenance.

The life of the building, being not less than 5 years, for building elements: •

that are easy to access and replace (for example, services, linings, renewable project coatings, and fixtures)

•

for which failure to comply with the Building Code would be easily detected during the building's normal use.

Assessing building product durability Designers and builders recommend the use of building products based on their opinions that those products will meet Building Code durability requirements. In assessing the durability of building products, regard should be given to: •

appraisals

•

history in use

•

manufacturers' technical literature

•

reputation of the manufacturer

•

the product's warranty (which may be provided by the manufacturer).

A building consent authority may be satisfied that a product complies with Clause B2 Durability despite there being no product warranty. Although a product warranty can

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be considered (for example, if the manufacturer is willing to replace its product for a period equal to its required durability), a warranty cannot be the sole criteria for assessing durability.

Warranties do not ensure durability The existence of a product warranty does not mean the product will necessarily be durable or last for a certain number of years. Rather, a warranty only helps to repair or replace the product when there are problems, or to compensate for any damage. Additionally, a warranty for several years is worthless if the company offering it goes into liquidation.

Product warranties Product warranties only apply when voluntarily offered by the manufacturer, installer, or other business providing the product. These types of warranties are based on either representations made by, or a contract with, the person or company providing the product or service.

The party providing the warranty usually decides the warranty period as well as the terms and conditions for the warranty.

Implied warranties under sections 396-399 of the Building Act 2004 Implied warranties are different from product warranties because they are duties that can arise automatically without a guarantee ever being offered.

New consumer protection measures set out in sections 396 to 399 of the Building Act 2004 offer homeowners increased protection by ensuring various warranties are implied into certain contracts regardless of whether the warranties are specified in the contract.

The warranties are implied despite any provision to the contrary in any agreement or contract.

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When do the implied warranties apply? These 'implied warranties' only exist in certain circumstances. The warranties apply to two types of contracts for: •

building work on household units

•

sale of household units by a residential property developer.

The warranties will only be implied into contracts of these types if the contract was entered into from 30 November 2004, the main commencement date of the Building Act 2004.

The contract need not be written for the implied warranties to apply. The warranties are also implied into contracts that arise from an oral agreement or understanding (for example, a verbal contract for building work on someone's house).

What are the implied warranties? The implied warranties for products are: 1.

All materials supplied for use in building the household unit: - will be suitable for the purpose they are used, and - will be new (unless otherwise stated in the contract).

2.

If the contract states a purpose or result expected by the owner, the building work and materials will be: - reasonably fit for that purpose - of a nature and quality reasonably expected to achieve that result.

There are also implied warranties relating to the way in which building work is done. These are: 1. The building work will be done: - in a proper and competent manner - with reasonable care and skill - according to the plans and specifications in the contract - according to the building consent

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- according to all laws and legal requirements (this includes the Building Act 2004 and the Building Code). 2. The building work will be completed by the date specified in the contract (or if no period or date is specified, within a reasonable period). 3. The household unit will be suitable for occupation when building work is complete.

Claims for breach of implied warranties The contractor (in a contract for residential building work) or the residential property developer (in a contract for sale of a household unit), is responsible for ensuring that he or she meets each of the implied warranties. Breach of the implied warranties would be considered a breach of contract.

The recourse for breach of contract depends on the circumstances of the particular case, but are likely to include monetary damages based on the nature of the loss suffered.

The period for an owner to bring action for breach of contract is 6 years from the date of breach.

Not only the original owner, but also future owners of the household unit to which the contract applied, are entitled to enforce the implied warranties as if they were a party to the original contract (section 398).

How product warranties, implied warranties and Clause B2's durability requirements interrelate Whether product warranties or implied warranties apply and how they relate to the Building Code durability requirements in any particular circumstance must be considered case by case.

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However, the following points provide a useful general guide: •

The existence of a product warranty does not itself mean the product necessarily meets the durability requirements under Clause B2 of the Building Code. While the product warranty is something that can be considered when assessing durability, other relevant matters should be considered.

•

A product warranty may help to repair or replace the product when there are problems, or compensate for any damage.

•

Product warranties, which are voluntarily offered by a business, are different from the Building Act's 'implied warranties'. A contractor for residential building work or a residential property developer has no choice about whether to offer the implied warranties.

•

If a product fails because it was used for the wrong purpose, it would not be a breach of the manufacturer's product warranty, but may be a breach of the contractor's or residential property developer's implied warranty that the materials used in building the household unit will be 'suitable for the purpose'.

•

Where a product is faulty, as well as any claim under the implied warranties the product was not 'suitable for purpose', a homeowner may have a separate claim against the manufacturer under any manufacturer product warranties the owner relied on.

•

If building work by a contractor or residential property developer does not meet Building Code durability requirements, the contractor or developer could also be in breach of contract for failing to comply with some of the implied warranties (for example, failing to do the work according to legal requirements, failing to do the work in a 'proper and competent manner' with 'reasonable care and skill', or failing to use materials that are 'suitable for the purpose they are used').

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10.3

Sample Risk Assessment Framework

When deciding which assurance option is most appropriate for your product, you may find the following framework useful. The framework looks at the likelihood of your product failing5, and what the consequences might be if it did. The combination of these two factors will give an indication of the level of risk.

In turn, this will indicate what level of product

assurance is likely to be required.

The range of Low risk through to Extreme risk would then suggest the level and robustness of the proof required to demonstrate product assurance and, where required, Building Code compliance. Likelihood of Failure Guide Rare

Only in very exceptional circumstances

Unlikely

Would not be expected to happen in durability lifetime of product

Possible

May happen at end of durability lifetime of product

Likely

Might happen in durability lifetime of product

Consequence of Failure Guide Insignificant

No risk of harm to building users Failure does not impact on any other components (eg, hot water system heating element fails, resulting in no hot water)

Minor

Might cause harm to building users Failure is visible, quickly apparent and isolated (eg, UV exposure causes guttering or downpipe to fail)

Significant

Causes injury or illness (eg, scalding when hot water system tempering valve fails) Causes gradual/hidden failure of another component (eg, failed sealant causes water ingress resulting in damage)

Major

Potential loss of life (eg, collapsing roof beam) Causes catastrophic failure of another component (eg, movement of concrete slab cutting off services)

5

For the purposes of this framework, failure is defined as failure to meet the relevant requirements of the Building Code.

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Once you have decided the likelihood and the consequence you think applies to your product, you can map them against the framework.

More likely to be assured through technical information and independent assessment

Consequence Î

Insignificant

Minor

Significant

Major

Rare

Low

Low

Medium

High

Unlikely

Low

Low

Medium

High

Possible

Low

Medium

High

High

Likely

Medium

Medium

High

High++

Ð Likelihood

More likely to be assured through appraisals or product certification

Assessing risk is always subjective – this sample framework is only a guide which may assist in your decision-making process.

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10.4

The Building Regulatory Environment – an overview

The Building Act 2004 The Building Act 2004 (the Act) is the legislation which gives us the legal framework that applies to building work. Building work includes work in connection with the construction, alteration, demolition or removal of a building. The Act outlines the systems for the consenting process and associated obligations of key players.

The New Zealand Building Code The New Zealand Building Code (the Building Code) is the First Schedule of the Building Regulations 1992.

The Code is performance-based, which means that it describes how completed building work must perform, rather than how a building must be built. Any product can be used, provided the consent applicant demonstrates its compliance with the relevant performance requirements of the Code.

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The Code has 35 technical clauses (see Section 10.1 of this Guide). These cover issues such as structure, fire safety, access, moisture, safety of users, services and facilities, energy efficiency and durability. Different clauses are relevant to different products, although there are ‘umbrella’ clauses such as B2 Durability which apply in all cases. These are particularly important to understand (see Section 10.2).

So, while the Act and the Building Code give the legal rules for building design and construction, the Building Code also looks at a building’s technical performance (including the performance of its component products).

It is mandatory for new building work to comply with the Building Code. However, there are many ways to establish that performance requirements have been met.

Compliance Documents The Department of Building and Housing (the Department) publishes Compliance Documents that set out ways to achieve compliance with the Code. Methods set out in Compliance Documents must be accepted as establishing compliance with the Code.

The Department publishes two types of Compliance Document:

(1) Acceptable Solutions (AS) These give practical design and construction methods by which Building Code compliance can be achieved. For example, the Building Code tells us the energy efficiency requirements that building work must meet. The AS gives us practical designs which, if followed, will lead to compliance.

(2) Verification Methods (VM) These are test procedures or calculation methods which provide verification that a building complies with the Building Code. For example: the Building

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Code stipulates structural requirements that all buildings must meet. The VM provides calculation methods that may be used to show how a building design complies with these structural requirements.

Durability requirements are implicit in the Compliance Documents for the Code clauses they refer to.

Alternative Solutions Compliance Documents do not have to be used. For example, a designer can come up with other ways of doing things – known as ‘alternative solutions’ – as long as the design shows that the work will meet the Building Code performance criteria. The more the design (including products forming part of the building system) departs from an Acceptable Solution or Verification Method, the more technical information the consent application will need to include to demonstrate Building Code compliance.

Role of Standards Standards are produced in New Zealand by Standards New Zealand, and in other countries by approved Standards organisations. They cover many subjects and are developed by independent committees of volunteers nominated by national organisations with an interest and/or expertise in a particular subject area.

Some Standards are adopted by the Department of Building and Housing, and these are named (or ‘cited’) in the Department’s Compliance Documents. The Department may cite an entire Standard or just specific parts of it, and that Standard may form all or part of a means of compliance.

A commonly cited New Zealand Standard is NZS 3604 ‘Timber Framed Buildings’. It is cited by the Department in Compliance Document B1 Structure as being an Acceptable Solution for structure. Building work that follows NZS 3604 automatically complies with Building Code Clause B1 Structure.

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Other Documents Many Government and industry-based organisations, both in New Zealand and overseas, publish ‘Good Practice’ guidance documents and test and calculation methods. A number of these documents and methods are adopted by the Department of Building and Housing, and are cited in the Compliance Documents in a similar way to Standards.

Some of those not cited can, where appropriate, be used in part to support demonstration of Code compliance for alternative solutions.

Building Consent Authorities and the Building Consent Process A building consent authority (BCA) is an organisation that is authorised to issue building consents. All territorial authorities (ie, your local council) are BCAs.

Applications for building consents must include plans and specifications (which by definition include ‘drawings, specifications and other documents’) showing the full nature and scope of the proposed building work, and how all parts of that work will comply with all relevant parts of the Building Code.

A building consent provides formal approval to do building work. All building work requires consent unless it is ‘exempt work’ ie, urgent or schedule 1 work, or work so minor that the Building Code does not apply. A consent will only be issued if the BCA is satisfied that the plans and specifications for the building work fully comply with the Building Code.

BCAs also undertake targeted inspections while building work is underway to ensure the actual work taking place is the same as the work outlined in the consent.

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It is common for variations to consented building work to take place during construction. Where this occurs, the substituted product or system must also be Building Code compliant, the consent documents amended to reflect the change and the BCA notified so they can approve the change. (see http://www.dbh.govt .nz/bcaupdate-august-2008-8 for guidance on variations.)

Once the building work is complete, the BCA will issue a code compliance certificate (CCC) if it is satisfied, on reasonable grounds, that the building work complies with the consent.

If building work does not match the consented design, a BCA can refuse to issue a CCC. Without this certificate, the owner may have difficulty obtaining finance and insurance or have trouble selling the property at a later stage.

A building consent applicant: • must provide sufficient supporting information to the building consent authority to enable them to determine whether a product will meet relevant performance requirements of the Building Code. • will be relying on manufacturers and suppliers to ensure they have easy access to all the supporting information they need.

Figure 1 summarises the building consent process and its main participants.

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Figure 1 - The Building Consent Process

A p p lic a tio n fo r a consent

BCA D o e s d e s ig n c o m p ly w ith C o d e ?

Owner

Building Designer

B u ild in g c o n s e n t is s u e d

O n - s ite in s p e c tio n s

Builder

The consenting process protects the community by ensuring that: • buildings are built to the right standard • buildings are safe for people to use • a public record of building work is available.

C o d e C o m p lia n c e C e r tific a te is s u e d

Manufacturers and suppliers should support the building consent process by providing quality product information to four key audiences: • Owners • Building designers • Builders • Building consent authorities.

Determinations Where there is disagreement with the BCA during the building consent process, the owner or builder can apply for a determination.

A determination is a binding decision made by the Department of Building and Housing. It provides a way of solving disputes or questions about whether something complies with the Building Code, or disagreements about decisions made by BCAs under the Building Act.

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11. Resources •

www.dbh.govt.nz The Department’s website has a wide selection of detailed information about the various topics covered in this document. You can also keep up to date with changes to the Building Code and the product certification scheme, and access all compliance documents and cited Standards.

•

www.standards.govt.nz There are more than 650 building-related New Zealand Standards. Visit this site for more information.

•

www.legislation.govt.nz The New Zealand Legislation website gives free access to all current New Zealand legislation, including regulations made under an Act.

•

www.consumeraffairs.govt.nz The Consumer Affairs website explains the generic obligations of manufacturers and suppliers, and the protection available to consumers under the various pieces of legislation referred to in Section 9 of this Guide.

•

www.branz.co.nz BRANZ Group, comprising BRANZ Inc and BRANZ Ltd and their partlyowned subsidiaries, is owned and directed by New Zealand's building and construction industry. BRANZ Inc is a significant investor in industry-good research and knowledge dissemination to the wider building and construction industry. BRANZ Ltd is an independent and impartial research, testing, consulting and information company providing resources for the building industry.

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Published in April 2010 by Department of Building and Housing PO Box 10 729 Wellington, New Zealand This document is also available on the Department’s website: www.dbh.govt.nz You can copy all or some of this document only if you are using it for education or public information, and you say it came from us. You cannot copy any of this document in any way for commercial use, and you cannot keep it in a retrieval system unless you ask us first. ISBN: 978-0-478-34316-8 (website)