Building Research Levy Act 1969

The Building Research Levy Act 1969 authorises a levy on certain building work in New Zealand. The Act says money received by the Building Research Association of New Zealand from levies imposed under the Act, or from any other source, is to be used for promoting and conducting research and other scientific work in connection with the building construction industry.

The Act also lists examples of what that money may be used for. These include laboratories, tests and experiments on materials, experiments into improved techniques, a library of building publications, grants for research, lectures and seminars, publications, general advisory services to members, premises, patents and licences, and administration costs.

For most builders, contractors and developers, this is not a broad licensing law. It is a targeted levy regime. The practical questions are whether the work needs a building consent, who is treated as the builder, what amount the levy is assessed on, whether the threshold is met, and when payment becomes due.

The Act binds the Crown. That means the levy framework is not limited to private sector projects. If the work falls within the Act’s definitions and trigger points, the levy rules can still matter.

The Act applies to construction work connected with the construction, erection, renewal, alteration, or improvement of a building where a building consent is required under the Building Act 2004. It does not cover every trade job. The definition of building consent excludes a consent issued for demolition.

The definition of builder is broad. If there is a main contract by an employer for the work, the builder is the person with whom that contract is made. If there is no such contract and the work is performed for sale or leasing on that person’s own account, that person is the builder. In all other cases, the builder is the person responsible for carrying out the work.

This means the levy question is not limited to a standard head contractor model. It can also affect developers building on their own account and other project structures where no main contract exists.

The levy is payable by every builder in respect of either the consideration payable under a contract for construction work, or, where the builder performs or intends to perform the work otherwise than under a contract, the value of the work as worked out under the Act.

The threshold is important. No levy is payable if the contract consideration is less than $20,000. No levy is also payable if work assessed by value rather than contract price is worth less than $20,000.

The Act defines consideration as the amount agreed between the employer and the builder at the time the contract is entered into as the amount payable under the contract. It does not include later additions or reductions agreed as a result of a variation made after the levy payable in respect of the contract becomes due.

Do not leave this check until the end of the project. The Act ties liability to the issue of the building consent, so the threshold and valuation questions should be checked early in the job lifecycle.

The Minister may prescribe the rate of levy by notice after consulting with the association and the New Zealand Master Builders’ Federation Incorporated. The Act says the prescribed rate must be based on the total consideration payable under a contract, or, if the work is performed otherwise than under a contract, the total value of the work as ascertained under section 5.

The Act also sets a cap. The prescribed rate must not exceed $1 for every $1,000, or part thereof, of the total consideration or total value. A notice prescribing a rate must be published under the Legislation Act 2019 at least 14 days before it comes into force. The Minister may also vary or revoke a notice.

This page does not state a current levy rate. Before relying on this Act for pricing, invoicing, or payment planning, check the current operative notice separately.

The Act says every levy becomes due and payable by the builder at the time the building consent is issued. That is the key timing rule for business planning.

In practice, this can catch builders who assume the levy follows progress claims, practical completion, or final account. It does not. If the Act applies, the due date is linked to the consent issue date.

The Act also says that where levy is assessed on contract consideration, the association’s entitlement to the levy is not defeated, reduced, or otherwise affected by any counterclaim, set-off, or cross-demand by the employer. A payment dispute with the client does not automatically remove the levy exposure.

The Act deals directly with staged work. If a builder contracts to perform construction work in stages, the considerations payable for each stage must be added together to assess the amount of levy payable.

This matters for builders and developers who split one project into separate packages, milestones, or stage agreements. The Act looks at the total of the stage considerations for levy assessment. You should not assume that separate stage pricing keeps the work below the threshold.

If your project is being documented in stages, make sure your contract records clearly show how the stages fit together and what the total consideration is across the staged arrangement.

The Act also applies where a builder performs or intends to perform covered construction work otherwise than under a contract. In that situation, the levy is assessed on the value of the work.

The first valuation step is the value specified in the building consent, if any. If no value is specified in the consent, the value is whatever the association and the builder agree. If they cannot agree, the value may be determined by arbitration.

This is especially relevant for developers building on their own account, owner-build structures, and other projects where there is no standard employer-builder contract setting a contract price.

The association may require information needed to assess the levy. If levy is assessed on contract consideration, it may require the employer or the builder to provide information relating to that consideration. If levy is assessed on the total value specified in a building consent, it may require the builder or the local authority to provide information relating to that value.

The Act also restricts disclosure of information provided under these powers. Subject to stated exceptions, information cannot be disclosed without the required consent. Exceptions include summaries of similar information that do not identify a particular business, and disclosures for legal proceedings or reports of those proceedings.

The offence wording is specific. A person commits an offence if they wilfully fail to comply with a requirement for information. A person also commits an offence if they knowingly or recklessly provide information that is false in a material particular, or wilfully disclose information in breach of the confidentiality rule.

The Act also says that where an offence under this section is committed by a body corporate and is proved to have been committed with the consent or connivance of, or to be attributable to neglect by, a director, manager, secretary, or similar officer, that person as well as the body corporate may be proceeded against and punished.

If the value of work done without a contract needs to be determined by arbitration, the association and the builder may appoint a single arbitrator together. If they cannot agree on one arbitrator, each party appoints an arbitrator and those arbitrators appoint an umpire.

If one party fails to appoint an arbitrator within 21 days after being asked by the other party, the arbitrator appointed by the other party conducts the arbitration alone and that decision is binding. If two arbitrators are appointed and they do not agree within 28 days after the matter is referred to them, the umpire determines the matter and that decision is binding.

Each party pays the costs, charges, and expenses of the arbitrator it appoints. The umpire’s costs, charges, and expenses, if any, are borne equally. The Arbitration Act 1996 applies, subject to the Act’s own rules.

The Act links levy liability to membership rights in the association. A person carrying on business as a builder who is liable to pay a levy and is not in arrears is entitled, without paying a membership or other fee, to become a member by written application, or to continue as a member if already a member.

Subject to fulfilling member obligations, that member is entitled to the benefits of membership under the association’s rules, including the right to vote at a general meeting.

The Act also allows the association to appoint agents to receive levies. Any person may, with their concurrence, be appointed as an agent for receiving levies. For that purpose, the term person includes a local authority. The association may allow an agent to retain an agreed percentage of levies collected, approved by the Minister, but that percentage cannot exceed 5%.

A builder may pay the levy directly to the association or to an appointed agent. Levies are recoverable as a debt due to the association.

If you are pricing or managing a project, use this Act as a framework for your checks rather than a substitute for project-specific verification. The most important missing practical input is the current operative levy rate, because this page does not confirm it.

You should also make sure your project documents line up. The contract consideration, staged pricing, consent details, and any stated work value should not contradict each other without a clear explanation. If the project structure is unusual, identify early who is legally the builder for levy purposes.

For many businesses, the safest approach is to build a levy review into the same internal process used for quoting, contract approval, and consent tracking.