On 21 February 2019, New Zealand’s central government formally confirmed the revocation of a certification company’s authority to issue CodeMark certificates. The company was New Zealand’s only locally based certification body for new overseas products, and the incident caused an uproar in building materials certification circles.
I have enormous respect for this expert: he is a ‘warrior’ who has boldly introduced innovative building products, dared to challenge an outdated building materials system and remained committed to changing New Zealand’s construction industry.
Perhaps it was his own mistakes, pressure from vested interests, political infighting, market competition, being outnumbered, or local protectionism reaching unimaginable levels. Whatever the reason, the outcome was that New Zealand lost a leading figure in CodeMark certification, leaving a handful of certification companies, mostly based in Australia, and BRANZ (Building Research Association of New Zealand Ltd), a partly state-owned enterprise that issues just one CodeMark certificate for building wrap a year.
Having personally handled the New Zealand certification process for numerous Chinese building materials, I have also been prompted to think more deeply about the entire CodeMark system and standards within the industry.
What is CodeMark?
Put simply, CodeMark is the highest-level building materials certification system jointly established through legislation by the New Zealand and Australian governments. Local councils must unconditionally accept CodeMark-certified products or systems during approval, provided they are used within their specified scope.
Its standing as the highest level stems from the comprehensiveness of the certification system. Everything from raw materials and production to on-site factory quality control must be certified; it is far more than simply submitting samples for testing.
That does not mean CodeMark is the only route to building materials certification. Appraisals are also widely recognised by local councils. Currently, two organisations in New Zealand can provide Appraisals: the BRANZ (Building Research Association of New Zealand Ltd) laboratory and the BEAL laboratory.
Another certification method combines a Product Technical Statement with a Test Report. This requires collaboration between a professional design practice with expertise in materials science and New Zealand codes, and an independent laboratory.
A complete set of certification documents must include the product’s scope of use, installation methods, a full set of details demonstrating compliance with New Zealand codes, test reports, maintenance requirements, warranties and more. For details, refer to my Guide to New Zealand’s Building Product Assurance System (2016 Chinese edition), or contact the New Zealand Chinese Building Industry Association (NZCBIA).
A frequently asked question: ‘My relative or friend has a factory that can manufacture certain products, or can assemble an entire house. Can we bring them straight to New Zealand to sell?’
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First, New Zealand’s building materials certification requirements are relatively distinctive. Many products require certification, and evidence that products meet New Zealand standards and the New Zealand Building Code is required when applying for building consent. For an entire prefabricated house, almost every component needs to be certified separately.
In other words, if building materials could be imported from Chinese factories and used so easily, such products would already be widespread in New Zealand’s construction market. We would not still be facing the unresolved problem of persistently high building materials prices.
Is it difficult to certify Chinese products to New Zealand standards?
New Zealand has its own system of standards. Some are shared with Australia, while a substantial proportion of requirements must be met under NZS (New Zealand Standards).
The activities of local Chinese businesses show that most currently deal in products requiring no certification, followed by products with very straightforward certification processes. Chinese businesses less often venture into products with relatively demanding certification requirements and high barriers to entry.
How long does certification take?
It depends on the product’s complexity. In my experience, it can take anywhere from 1 year to 5 years. Qualified certification companies have limited resources, and reliable ones are few and far between. Most do not know what they need to do or how to do it, making things up as they go while charging ever-increasing fees.
How much does certification cost?
Certification itself generally costs between $50,000 and $200,000. Larger costs that must not be overlooked include modifying production lines to meet New Zealand standards and paying for additional storage to accommodate overseas minimum order quantities for raw materials.
Which organisation should you apply to?
Simply engaging a certification company is nowhere near enough. Certification companies have limited responsibilities and capabilities: they certify the products presented to them. They are not research and development organisations. Bringing products and systems from development into practical use requires effort from multiple parties.
Much of the materials certification I have seen is an exercise on paper, neither practical nor useful. A major missing element is implementation in New Zealand. Success in China does not necessarily mean success here: both the natural environment and the way the construction industry operates are very different.
Designers and engineers must be satisfied that the products meet local codes, and the products must suit the working practices of local plumbers, electricians and carpenters. After all, every project requires these professionals’ sign-off. To be used in New Zealand, a certified product must work with local materials, go through local council approval, undergo trial projects and have its buildability verified.
To avoid unnecessary detours, contact the New Zealand Chinese Building Industry Association. Its members include specialist materials suppliers, certification agents, designers, engineers and builders with extensive project experience.
Is the job done once certification and implementation are complete?
No. The monopolistic position of local building materials suppliers cannot be ignored. Although Chinese participation in New Zealand’s construction industry is increasing year by year, Chinese businesses remain at a disadvantage in imported building materials. Prepare thoroughly, understand the strategies and methods required, and do your best to avoid being ‘stabbed in the back’.
How should imported building materials be promoted?
With a population of more than 4,000,000, New Zealand has a limited market. To be frank, large Chinese enterprises should not waste their time here. Businesses planning to enter the New Zealand market should position themselves appropriately for their circumstances, bring together local resources, seek sizeable projects, and establish professional sales and after-sales teams.
Businesses coming to New Zealand from China can use the New Zealand Chinese Building Industry Association’s platform and participate in its major annual construction trade show to raise their profile and strengthen their brand’s influence.
For many years, local New Zealand building materials companies have sourced a large proportion of their products overseas, and a large proportion of those imports come from China. So which has the greater advantage: building materials purchased from China by Western-owned companies, or those exported to New Zealand by Chinese businesses? I leave that question for readers to consider.
About the author
Huang Haixin
Secretary-General of the New Zealand Chinese Building Industry Association, founder and director of Archiland, an Auckland architectural practice
Huang Haixin graduated in architecture from the University of Auckland. He has more than 10 years of professional experience in New Zealand and has contributed to the design of more than 600 projects. In recent years, his focus has been BIM, modular prefabricated construction and low-energy homes.