BUILDING ADVISORY PANEL – TERMS OF REFERENCE
Purpose
The purpose of the Building Advisory Panel (BAP) is to provide independent and specialist advice to the
Deputy Secretary1 responsible for the Ministry of Business, Innovation, and Employment (MBIE)’s building
regulatory system functions. The Panel is appointed under section 172 of the Building Act 2004.
Background
MBIE is the lead policy advisor to the Government on the building regulatory system. It is responsible for
advice on legislation and regulations, and for providing stewardship of the building regulatory system as a
whole. As the central regulator, MBIE manages the system that regulates building work. It is responsible
for, without limitation:
  the Building Act 2004 and related legislation;
  the New Zealand building code;
  occupational licencing of some professions;
  monitoring  the  performance  of  accredited  bodies  (including  building  consent  authorities  and
product certification bodies);
  investigating complaints about building consent authorities;
  making determinations about matters of doubt or dispute to do with building work.
MBIE  works  alongside  building  practitioners,  other  government  agencies,  other  regulators  and  the
construction industry to understand what matters to the sector and to improve the building regulatory
system.
Role of the Panel
The  BAP  supports  the  Deputy  Chief  Executive  of  Building,  Resources  and  Markets  by  providing
independent, specialist and evidence-based advice on strategic issues facing the building and construction
sector. It does this by:
  identifying emerging risks and opportunities to the performance of the sector, and advising on the
nature of the regulatory response;
  providing strategic advice on current and emerging trends in building design, building technologies
and other factors that may affect the building and construction system;
  providing sector leadership on building regulatory matters;
  sense  checking  MBIE’s  work  programme  and  priorities  with  a  view  to  ensure  they  create  a
regulatory environment that supports, and drives innovation in the sector;
  providing a channel for constructive dialogue between MBIE and the sector; and

1 The Chief Executive’s powers have been delegated to the Deputy Chief Executive of Building, Resources and
Markets.
RELEASED UNDER THE OFFICIAL INFORMATION ACT 1982
1

  identifying critical stakeholders for engagement on specific initiatives.
In undertaking these functions, the Panel is expected to:
  have a collective voice and build and maintain a network of leaders who have an interest in the
building and construction sector;
  consult;
  provide support for active communications between MBIE and the sector;
  participate in an annual stakeholder survey and a self –assessment process;
  provide input on the activities of the Panel for MBIE’s annual report; and
  be aware that the Deputy Chief Executive is not bound by the advice given by the Panel, but must
consider it.
Composition and membership
The Panel consists of a Chair and not less than five other members. Members are appointed for a term of
up to three years and may be appointed to one further term. They represent a broad range of interests,
rather  than  the  interests  of  a  particular  group.  Also,  the  Members  have  a  breadth  of  experience  and
expertise in the building and construction sector. Members are not employees of MBIE or the Crown.
The Deputy Chief Executive may, at any time, co-opt other suitable persons onto the Panel if doing so is
necessary for acquiring a board range of interests, experience and expertise.
Where members are unable to attend a meeting, it is the role of the Chair to obtain their input in advance
of the meeting.
Key skills of a BAP Member
  Understanding of regulatory frameworks and the building regulatory system
  Ability to put aside individual interest(s) and provide constructive advice across a range of matters
  Proficient at building and maintaining effective networks and relationships
  Able  to  confidently  ask  questions  to  test  assumptions  around  decisions  from  a  strategic
perspective.
Guiding Principles
  Members will be frank and open in discussions, and the Chatham House rule will be observed;
  The Panel will apply collective judgment to identify what is most important to the sector;
  The Panel’s advice will represent the view of the Panel as a collective (rather than any individual
or organisation).
Authority
Confidentiality
Members are required to not disclose or make use of information that would otherwise not be available
to them, except in agreed circumstances.
Conflicts of Interest
The BAP Secretariat will first do a risk assessment of the papers for BAP meetings using the register
of conflict as the basis. Then the Secretariat will send the meeting agenda to all BAP members before
the  applicable  BAP  meeting  documents  are  sent  out.  Upon  receipt  of  meeting  agenda  by  BAP
RELEASED UNDER THE OFFICIAL INFORMATION ACT 1982
2

members, each member will advise the Secretariat if there are any perceived, potential or actual
conflicts in relation to any of the items that are listed in the agenda.
If the Secretariat identifies a potential conflict of interest, the Secretariat will contact the relevant
BAP member to discuss a possible mitigation approach. Possible approaches will include:
a)  The  BAP  member confirming  that  there  is  a known  conflict(s)  to  the  Secretariat  before  the
applicable BAP meeting documents are sent out (about two weeks before each meeting). They
will not receive the relevant documents, and will recuse themselves from any associated BAP
discussions at the meetings.
b)  For BAP members with a practising certificate, they obtain consent from their relevant clients
agreeing (as per Rule 7.3(a) of the Lawyers and Conveyancers Act (Lawyers: Conduct and Client
Care) Rules 2008) that the practising certificate holder is not required to disclose to that client
confidential information received by virtue of their BAP membership.
Also, it is a requirement that BAP members who hold a practising certificate advise any new clients
for whom work presents a potential conflict with the member’s BAP obligations, of the need for that
client to agree to allow the BAP member to retain confidentiality of BAP information, as a condition
of taking instructions from that client.
When a plan for managing the conflict of interest is agreed between the Secretariat and the member, the
Secretariat  will  advise  the  BAP  Chair  and  the  General  Manager  of  Building  System  Performance
accordingly. The  Secretariat  will advise  the  General Manager of Building System Performance  about  a
conflict of interest involving the BAP Chair after it is agreed between the Secretariat and the Chair.
Meeting arrangements
Meetings are held quarterly with ad hoc meetings held when required.
MBIE will aim to circulate the papers for the meeting 10 days prior to it.
Fees and expenses
The  Panel  is  a  statutory  board  for  the  purposes  of  the  Fees  and  Travelling  Allowances  Act  1951.  In
accordance with that Act, the following fees have been agreed for the Panel:
  Chairperson  -  $810  per  day  or  an  hourly  pro-rata  rate  as  required,  up  to  a  maximum  of  $24,300
excluding GST per annum.
  Panel members - $540 per day or an hourly pro-rata rate as required, up to a maximum of $16,200
excluding GST per annum.
It is expected that there will be 1 or 2 days’ preparation required for each Panel meeting for which fees
are payable.
Actual and reasonable costs incurred in travelling or other expenses in performing duties as a member of
the Panel will be met, up to a maximum of $5,000 excluding GST per annum.
Payment of fees and expenses
Fee payments for members appointed to boards are governed by the Fees Framework outlined in Cabinet
Circular CO 19(1) and the Income Tax Act 2007, Schedule 4, Part B, Paragraph 1B.
Your fees for time spent as a representative of the board and reimbursement of individual expenses are
treated differently from a tax perspective. Withholding Tax is only applied to your fees and does not apply
to the reimbursement of expenses. Therefore MBIE has requested that you submit separate invoices.
RELEASED UNDER THE OFFICIAL INFORMATION ACT 1982
3

Members must provide either an IR330C form or an exemption certificate for the payment of fees. If these
are not received, MBIE will be required to deduct tax at 45% from member fees paid.
An invoice must be issued to the Ministry for payments of fees and expense reimbursements and must
meet the following requirements.
  is addressed to the Ministry of Business, Innovation and Employment (not MBIE);
  has the name of the contact person at MBIE. Please put Building Advisory Panel (BAP) Secretariat;
  includes the members name;
  includes the word ‘invoice’;
  includes an invoice number;
  includes a description of goods/services that have been provided as prescribed by your board
secretary.
Members should not  deduct  the  withholding tax  on fees  on the  invoice  – the tax  will be  deducted  in
accordance with the IR330C when the payment is made.
A separate invoice should be issued for expense reimbursements. This should meet all the requirements
outlined  above  and  have  the  relevant  tax  invoice  (receipt)  attached  where  GST  is  part  of  the  cost
reimbursed. There is no GST on mileage reimbursements.
Please  email  all  invoices  and  relevant  tax  invoices  (receipts)  to  the  BAP  Secretariat
([email address]) as soon as possible after the relevant BAP meeting has occurred.

RELEASED UNDER THE OFFICIAL INFORMATION ACT 1982
4

ANNEX 1 – RELEVANT SECTIONS OF THE BUILDING ACT 2004
171  Chief executive may seek advice from building advisory panel
(1)
The chief executive may, at any time, seek advice from a building advisory panel appointed
under section 172 on—
(a)
current and emerging trends in building design, building technologies and other
factors that may affect—
(i)
the building code and compliance documents:
(ii)
any warnings issued, or bans declared, under section 26 in relation to any
building method or product:
(iii)  any guidance information published by the chief executive under section 175:
(b)   whether this Act or the regulations are achieving their purpose:
(c)
building issues that are not covered by this Act, but which the panel considers should
be dealt with by legislation:
(d)   any other matter that the chief executive considers appropriate for the panel to
advise on.
(2)
The chief executive must consider, but is not bound by, any advice given by the panel.
172  Appointment of building advisory panel
(1)
The chief executive must appoint a building advisory panel that—
(a)
consists of experts in the building sector; and
(b)   has the following members:
(i)
1 person to convene and chair the panel:
(ii)
no less than 5 other members.
(2)
The chief executive must,—
(a)
before appointing a member, publicly notify a vacancy in a manner that enables
suitably qualified individuals to apply for appointment; and
(b)   in appointing a member,—
(i)
take into account the need for members of the panel to have among them a
breadth of experience and expertise, and knowledge of, or experience in,
matters that come within the panel's function (including, without limitation,
matters that relate to consumer, cultural, disability, energy efficiency, health
and safety, heritage, or sustainable development issues); and
(ii)
ensure that there is an appropriate balance in the membership of the panel so
that the members represent a broad range of interests, rather than the
interests of a particular group; and
(iii)  consult, as the chief executive considers appropriate, persons who have an
expertise or interest in matters that come within the panel's function.
(3)
The chief executive may, at any time, co-opt suitable persons onto the panel if doing so is
necessary for the purposes of subsection (2)(b)(i) and (ii).
(4)
The terms on which a member of the panel is appointed are the terms set by the chief
executive when appointing the member.
(5)
A member must not be appointed for a term that exceeds 3 years, but may be reappointed
for 1 more term.
RELEASED UNDER THE OFFICIAL INFORMATION ACT 1982
5

(6)
A member of the panel may resign by written notice to the chief executive.
(7)
The panel is a statutory board for the purposes of the Fees and Travelling Allowances Act
1951.
(8)
There may be paid, out of public money to the members of the panel, remuneration by way
of fees, salaries, or allowances, and travelling allowances and travelling expenses in
accordance with the Fees and Travelling Allowances Act 1951, and the provisions of that Act
apply accordingly.
173  Function of panel
(1)
The function of the panel is to provide independent and specialist advice to the chief
executive on any of the matters referred to in section 171(1).
(2)
It is not the panel's function to advise the chief executive on the performance of the chief
executive's functions or duties, or the exercise of the chief executive's powers, under this
Act.
(3)
Subsection (2) does not apply if the chief executive seeks the panel's advice on the matters
referred to in that subsection.
174  Chief executive must report on panel's operation
(1)
The chief executive must ensure that information about the operation of the panel is, in
each year, included in the annual report of the Ministry.
(2)
For the purposes of subsection (1), the chief executive must, without limitation, include
information about—
(a)
who the members of the panel are; and
(b)   the number of times that the panel met; and
(c)
the fees and other expenses paid to members of the panel; and
(d)   a summary of the matters considered by the panel and whether the chief executive
followed the advice of the panel on those matters.

RELEASED UNDER THE OFFICIAL INFORMATION ACT 1982
6

Document Outline