Proportionate liability – changes coming to accountability for defective work
In August 2025, the Government agreed to change the liability rules in the building and construction sector.
The law will change how liability works in Aotearoa New Zealand. It will move from joint and several liability to proportionate liability. This means each party will only pay for their share of any defective work.
Whether you are commissioning or undertaking building work – you need to be prepared. To keep homeowners protected, new measures are being introduced:
- Mandatory home warranties for most new builds and major renovations.
- Mandatory professional indemnity insurance for design and engineering professionals.
- Stronger disciplinary penalties for Licensed Building Practitioners.
These changes aim to make the system fairer, more accountable and safer for everyone.
Find out what’s changing and when:
Proportionate liability – changes coming to accountability for defective work(external link) — Building Performance