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Clayton Cosgrove

31 March, 2007

Performance by Design? Can We Predict It?

Venue: Convention Centre, Palmerston North
Time: Saturday, 31 March, 6.45pm

President of the New Zealand Society for Earthquake Engineering, Mick Pender; Conference Convenor Graeme Beattie, Society members; distinguished guests; ladies and gentlemen.

Good evening. It is a pleasure to be here, especially with such an important group of professionals within the building sector.

I meet with many groups in the course of my work, but it is not that often that I can tell them directly that the work they do will save lives. I can do that here tonight.

The importance of the work you do is to some degree behind the scenes – hidden in the foundations, the structure and the placement of the buildings we live and work in. And it is not until it is put to the test in the event of a large earthquake, that we fully appreciate your work and give thanks for your expertise.

In a seismically volatile country like ours, our buildings are frequently shaken by quakes. No doubt we all hope that the next "big one" is a long way off in the future.

However, you are not in the business of hoping. You are in the business of planning for worst-case scenarios. Yours is a business of precision, based on scientific and engineering knowledge. It is always evolving, with new learning and innovation constantly at its heart.

But, it is not just equations and mechanics and theory. What you do is, above all, about people. The quality of buildings and structures that you are responsible for will, quite literally, save lives in the event of a significant earthquake.

Work doesn’t get more important than that which directly impacts on the safety of our fellow New Zealanders.

However, as I said, your work is in many respects ‘below the radar’ for most Kiwis.
New Zealanders might not think of earthquakes and the important work you do in their day-to-day lives. However, earthquakes are deeply embedded in our national psyche; they dwell within our sub-conscious as Kiwis.

We can recite the key dates as if they were anniversaries that mark our national life: Wairarapa 1855, and what New Zealander doesn’t know Napier in 1931, Inangahua in 1968, Edgecumbe in 1987. In fact, since 1848, we have had fifteen earthquakes measuring between 7 and 8.1 on the Richter Scale in New Zealand.

Those quakes are not only part of our historical narrative - they have also been both formative and interwoven into the way we build as a nation.

The devastation caused by the 1931 Napier earthquake triggered a significant change for New Zealand buildings. New standards for buildings were developed and in 1932, Standards New Zealand was established. As architectural fans will know, Art Deco designed buildings also took hold.

As in many areas, the knowledge behind the technology of building has powered ahead in the three-quarters of a century since. Indeed, it would be like comparing Henry Ford’s Model-T with the latest Aston Martin in the latest Bond film.

Look at what we now know about steel, about timber, about concrete methods. And look what we have invented in this country such as the lead rubber bearing and seismic dampeners. We have learnt a great deal about fundamental design principles, and we continue to learn. And you in particular, the professionals in this room tonight, are at the leading edge of that learning, here and internationally.

It is pleasing to note New Zealand’s world-class reputation in earthquake engineering and the contributions made by New Zealand’s earthquake professionals to overseas projects and practices. And in turn we are working towards having better buildings at home, by learning from the rapid changes, developments and opportunities of the global market. All of these things - new technology, building systems and products, building standards and design - are increasingly international.

The materials and technologies used in construction are evolving quickly. Buildings and building projects are becoming increasingly complex. But no matter how complex buildings become, safety will always be paramount to the community. This underlines the importance of the work that you all do, and the need for rigour in the design, consenting and construction processes.

Building Code Review

Seventy-six years on from Napier, the lessons of history are a key driver in the Government's current review of the New Zealand Building Code – its first major review in 16 years.

The Government has already held one public consultation round which has yielded valuable feedback, and another round will be held shortly. The full review is scheduled to report to me by 30 November this year.

Since the Building Code is the blueprint for how we design and build, it must encapsulate what we have learnt about building in this country, and what we must prepare for in the future. For example, factors such as climate and weather change, and how this will affect our building needs, are being considered. Issues surrounding the sustainability and energy efficiency of our buildings are also being covered in the current review.

The Code itself is performance-based, and it was world-leading when it came into force in 1992. It stresses what has to be achieved, rather than how to do it. The reason for this is to ensure that buildings meet certain performance standards without stifling innovation.

And I am sure that you all, in particular, appreciate the flexibility this allows you in your thinking, and in how your designs and structures meet the Code standards. I believe the new Code will raise the bar even further.

Public consultation to date has clearly shown the key issues and expectations which include:

·the need for leadership and ‘lifting the game’ for building performance requirements
·a desire for greater sustainability and energy efficiency
·a stronger focus on affordability
·an awareness of the differing needs of groups within the sector
·the need to improve the interface between building legislation and the Resource Management Act, which is our main piece of legislation setting out how we can sustainably manage our environment.

The feedback has been invaluable in ensuring that the review is on track. I urge you to get involved in the next round of consultation, because your input is invaluable.

The review will change what we build and the way we build it, because we expect a lot more from our buildings than we did even 16 years ago. There have been significant advances in construction technologies and in our knowledge of building products and performance. Our lifestyles are also changing. A modern Code must reflect that.

In many respects, the performance-based ethos behind the Code is about being innovative and raising the bar in terms of quality. It is about focusing on what really matters – whether something works or whether it doesn’t. That requires, above all else, top line analysis and new research – and that is precisely what you offer as earthquake professionals.

And that is where gatherings such as this one today come in. You are the very professionals and experts who will move building and construction forward. You are key players in ensuring that we have good evidence for the way in which we build safe structures, safe buildings, and safe homes.

In a nutshell, our regulations rely on research such as yours. You are helping lead the way to rebuilding a world-class building and construction industry in this country.

The Big Picture

We all need to be very clear that the driver here, the impetus for change, is not just the Government. People want better buildings. New Zealanders are increasingly aware of and expecting better quality construction in every respect. They want buildings to be built right the first time, and be built to last.

And the building industry wants an environment in which it can supply them. And that really is at the heart of all these changes.

However, to get there involves social, economic and technological development in equal measure, development that must have innovation, smart problem solving, and co-operation across the sector if it is to succeed.

So where are we at this moment? And what do we need going forward? Well 2007 is a watershed year for building and construction in New Zealand. Many of the systems set up by legislation will come online in the very near future – indeed, come November of this year there will be:

·Registration for the first set of building sector occupational licensing classes. A total of 13 licenses will be rolled out progressively from this November, starting with the design, site lead and carpentry classes. Starting on a voluntary basis to enable testing, the new regime will help ensure that homes and buildings in New Zealand are designed and built right the first time.

·The auditing and accrediting of Building Consent Authorities (BCAs). Local authorities that want to stay in the business of issuing and approving building consents will have to be registered as BCAs by November 30, this year.

·A product certification scheme will be in place

·Along with the core Building Act reforms, there will likely be new legislation on the housing front, including renting, multi-unit complexes, and changes to dispute resolution models

·Speaking of dispute resolution, the reforms rolling out from the Weathertight Homes Resolution Services Act 2006 will be in place – quite literally – tomorrow. The result will be faster resolution of claims, so affected homeowners can get compensation from the liable parties, get their homes repaired and get on with their lives.

·A pilot financial assistance scheme involving market rate loans and loan guarantees will also be in place, to help claimants get their homes fixed first and argue liability second.

·The Government is also investigating home warranty insurance options as another step in protecting homeowners and future proofing the industry

Add to this list the Government’s plans to introduce measures this year to improve the energy efficiency of homes and commercial buildings ahead of the completion of the Building Code review, and you get a true sense of how ambitious and far-reaching the reforms being implemented are. We are talking about a total transformation of the building and construction sector. And there are other reforms in addition to the ones I have already mentioned.

Earthquake-prone buildings

The Building Act 2004 introduced provisions to improve the likelihood of existing buildings withstanding earthquakes, focusing on those non-residential buildings most likely to be vulnerable. Under the Act, each local authority must develop a policy reflecting the seismic, social and economic considerations in its area.

Of course, this is not news to you, but let me take this opportunity to acknowledge the tremendous work you have done in this area and to thank you for it.

Last year your Society produced a remarkably important document: Recommendations for the Assessment and Improvement of the Structural Performance of Buildings in Earthquake.

It was a decade in the making, as the Society showed the foresight to anticipate the Building Act earthquake-prone provisions. And I understand that the Department of Building and Housing was instrumental in supporting you in its development.

It will provide designers, building officials, engineers and owners with preliminary and detailed guidelines on how to assess and improve the earthquake performance of existing buildings, and its recommendations are almost certain to become the benchmark tool for classifying buildings as earthquake-prone and for reducing their earthquake risk.

Your work here will promote consistency in assessing building earthquake risk and will contribute to the reduction of such risk in New Zealand, reflecting, as it does, the lessons learnt from past earthquakes, particularly those in Northridge, California in 1994 and Kobe, Japan in 1995.
The Department of Building and Housing is currently reviewing territorial authorities’ (city and district councils') policies for compliance with the Act, with 71 of the 73 having now submitted their policies.

AS/NZS 1170

You are all, no doubt, aware of the proposal to incorporate the joint Australian / New Zealand structural design standard AS/NZS 1170 into our compliance documents as an approved verification method for building designers. It will replace the current New Zealand loadings standard as a means of proving compliance with the Building Code.

Indeed many of you will be taking part in the Department of Building and Housing’s ongoing consultation process around this particularly interesting area of development. It completely ties into the performance-based ethos of the Building Code and in a very real sense, takes it to the next level.

It has been developed to reflect the latest understanding of building structural issues, including the loads placed on buildings by their own weight, the weight of their contents, and external factors, such as wind, snow and earthquake. It will significantly update the current standard and better match the latest understanding of the New Zealand hazard environment, and thus allow for more cost effective ways of achieving safe buildings.

In the event of a big quake, this Standard will reduce building damage, lessen disruption and, most importantly of all, help save lives and reduce injuries.

As I said at the beginning of this speech, the work you do is crucially important to creating a safe building future in New Zealand, and as Minister for Building and Construction, I fully acknowledge it and thank you for it.

I wish you all the very best for your annual conference. I look forward in confidence to the developments that you will surely bring to our built environment in the years to come.

Thank you.