Since 25 October 2022, the Licensed Building Practitioners (LBP) code of ethics has established clear and consistent standards for professional conduct in the building industry.
Building (Code of Ethics for Licensed Building Practitioners) Order 2021 — New Zealand Legislation
The code of ethics applies to all LBPs, regardless of whether you are employed, self-employed, run a business, or work as a contractor. It contains 19 standards, organised under 4 principles. These principles reflect what professional, ethical building practice looks like.
The purpose of the code of ethics is not to catch people out, but to protect the public and uphold confidence in the licensing regime. Most LBPs already meet these standards in their day-to-day work.
LBPs who consistently fall short of the expected standards may have a complaint made against them. Complaints about LBPs are considered by the Building Practitioners Board, a specialist body whose members have a mix of skills.
Since the code of ethics came into force, the Board has reviewed 266 complaints where there were alleged breaches of the code of ethics. These complaints have resulted in 24 decisions in which LBPs received a mixture of penalties including licence cancellation, training orders, fines, and costs.
Understanding and applying the code of ethics in everyday situations helps protect your reputation, your business, and your licence. Read on for information about the four principles of the code of ethics.
Principle 1: Work safely
Working safely is fundamental to being an LBP. You are expected to take responsibility for your own health and safety, as well as the safety of others on site. Be aware of your obligations as a worker or Person Conducting a Business or Undertaking (PCBU) under the Health and Safety at Work Act 2015, such as:
Taking responsibility for health and safety
Use tools and equipment correctly, wear appropriate personal protective equipment (PPE), and follow site-specific safety procedures. Keep the work site tidy and free of rubbish.
Reporting unsafe behaviour by others on a building site
If you see unsafe behaviour, such as a colleague using an unguarded power tool or ignoring personal protective equipment (PPE) requirements, you must speak up. If the behaviour continues, escalate the issue to a foreperson, supervisor, or other appropriate authority (for example, WorkSafe).
Avoiding harm to the environment
LBPs also have a responsibility to avoid environmental harm. For example, if a concrete truck is about to wash out onto a roadway or neighbouring property, you should intervene and redirect the washdown to an approved area.
Principle 2: Act within the law
All building work in New Zealand is governed by law, particularly the Building Act 2004 and associated regulations. You are not expected to memorise legislation, but you need to understand what laws apply to your work, what your obligations are, and where to find reliable guidance when you need it.
Comply with the law
In practice, many legal obligations are already addressed by:
- following consented plans and specifications,
- complying with site documentation and inspections, and
- working within the scope of your licence.
Report breaches of the law
If you become aware of a breach of the law, you must report it. This often starts with raising the issue directly with the person involved. If the breach continues, you must escalate it to an authority on the site.
For example, if reinforcing steel is omitted from blockwork despite being required by the consented plans, this is a breach that must be addressed immediately. First with the blocklayer, and then, if necessary, with site management.
If the breach still continues, you must report it to the relevant authority.
Principle 3: Take responsibility for your actions
As an LBP, you represent not only yourself or your employer, but the wider building profession. Maintaining trust with clients is essential, particularly when challenges arise.
Know what you are allowed to do
You must understand the scope of your licence class and only carry out or supervise Restricted Building Work (RBW) you are authorised to do. Supervising work outside your licence class, even unintentionally, is illegal.
Explain risks to your client
You must clearly explain design and construction risks before work begins and discuss options for managing them. If new risks appear during the project, you must tell your client as soon as possible, and in writing where appropriate.
Renovations are a common example. Hidden rot, structural deficiencies, or poor previous workmanship can all affect cost and timelines. Clients rely on you to explain these issues clearly and what they mean.
Inform and educate your client
Clients depend on your expertise. You must provide enough information to allow them to make informed decisions. If you do not know the correct solution, you should direct them to an appropriate professional, such as an architect, engineer, or designer.
Be accountable
If defects occur due to your work or the work of someone you supervise, you must be honest, communicate clearly, and act with integrity to resolve the issue.
Communicate delays early
Clients must be kept informed of progress and advised promptly of delays, including the reasons for them and what steps are being taken to reduce impact.
Act in your client’s interests
Delivering work to an acceptable standard and acting professionally protects both your reputation and the industry as a whole.
Follow lawful instructions
You should generally follow your client’s instructions, unless they are unlawful, unsafe, or conflict with consents or contracts. In those situations, it is your responsibility to explain the risks, legal implications, and required next steps, such as amending a consent.
Although obtaining a building consent is the homeowner’s responsibility, they often rely on you, as a building professional, for advice about requirements. You should not commence building work when you know a building consent is required, but the homeowner is reluctant to apply for one.
Principle 4: Behave professionally
The final principle focuses on professionalism, whether you are employed or running your own business.
Behave professionally
Treat clients and colleagues with respect. Abusive, threatening, or intimidating behaviour is never acceptable and has resulted in serious disciplinary outcomes.
Act in good faith during disputes
If there is a dispute, you must constructively engage in dispute resolution processes.
Price work fairly and reasonably
You must not mislead clients through unrealistically low pricing or add costs without agreement. If unforeseen issues arise that will affect pricing, such as unexpected ground conditions, you must tell the client and obtain their agreement before continuing.
Declare and manage conflicts of interest
Any personal or financial interest that could influence your judgement must be disclosed and managed appropriately. Being honest is key to maintaining client trust.
Maintain confidentiality
Client information must be kept confidential unless disclosure is legally required or authorised.
Respect cultural values
You must acknowledge and respect the cultural norms and values of clients and colleagues and avoid behaviour that could cause offence.
Run your business responsibly
If you operate a business, accurate records, honest billing, and methodical processes are essential. Poor administration can undermine client confidence.
Quiz
1. Considering the code of ethics, what must you do as an LBP if unforeseen site conditions increase the cost of work?
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- Absorb the cost to avoid conflict
- Continue work and add the cost to the final invoice
- Stop work entirely until the dispute is resolved
- Inform the client and obtain agreement before proceeding
2. Considering the code of ethics, which of the following situations must be reported and addressed?
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- A minor cosmetic defect that can be fixed at the end of the job
- Reinforcing steel omitted from blockwork required by consented plans
- A client requesting a faster completion date
- A subcontractor arriving late to site
3. Considering the code of ethics, which of the following is NOT an example of behaving professionally?
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- Treating clients and colleagues with respect, even during disputes
- Acting in good faith and engaging constructively in dispute resolution
- Declaring and managing conflicts of interest transparently
- Ignoring a colleague using an unguarded power tool
4. Considering the code of ethics, what is your obligation as an LBP if you see another worker repeatedly using unsafe equipment?
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- Ignore it, as health and safety is the employer’s responsibility
- Report it only if someone is injured
- Raise the concern with the worker first and escalate it if the unsafe behaviour continues
- Leave the site to avoid being involved