Compliant on paper, exposed in practice – don’t risk a hefty fine

If you own or manage a commercial building, you may have noticed more building inspectors turning up on your doorstep lately. You're not alone. Since a fire at a Wellington boarding house claimed five lives in 2023, the systems that keep buildings safe have come under a level of scrutiny most owners have never seen before.

The new regulations have become far more than a box-ticking exercise and you risk a hefty fine if you don’t comply

 

What has changed, and why

The fatal fire at the Loafers Lodge boarding house, exposed vulnerabilities and systemic weaknesses in New Zealand's Building Warrant of Fitness (BWoF) and compliance regime.

At the time of the fire, Loafers Lodge had a current and valid Building Warrant of Fitness (BWoF) covering its 13 specified safety systems (including fire alarms and smoke doors), which had been inspected and signed off as compliant by an Independent Qualified Person (IQP).

The tragedy demonstrated that while a building can technically comply with paperwork requirements (holding a valid BWoF based on component sign-offs) it could still lack comprehensive, life-saving modern fire safety infrastructure like full-scale sprinklers.

In response, in November 2024, the government tightened building safety regulations focused on strengthening the role and accountability of the Independent Qualified Persons (IQPs) who are qualified to certify BWoFs.

New offences and penalties have been introduced for IQPs who fail to meet their obligations, along with increased penalties for building owners who fail to provide or maintain a valid warrant.

What is a BWoF?

A BWoF is an annual certificate issued by an IQP confirming that a building's safety systems meet the requirements of the Building Act and Building Code. It covers everything from air conditioning and lifts to fire systems and emergency lighting, with each element needing its own certification against a maintenance schedule set out by New Zealand and Australian standards. For air conditioning specifically, this often means monthly or quarterly checks, depending on what's specified for that building.

Audits with teeth

For years, enforcement of these schedules was inconsistent, and the paperwork was treated as routine box ticking exercises. That attitude has shifted sharply. Council compliance teams have expanded rapidly in some regions, and buildings that looked squeaky clean on paper are now failing audits over requirements that were on the compliance schedule all along but never enforced.

A building serviced quarterly rather than monthly, even when quarterly has been standard industry practice for decades, can fail an audit outright if the schedule specifies monthly checks.

There is a workaround, an application to council to amend the schedule, but it comes with a fee and no guarantee of approval.

If the building owner fails to obtain a compliance schedule, supply the council with a building warrant of fitness or fail to display a BWOF they are liable for up to $20,000 and a further $2,000 per day that offence is continued. If the Council issue a notice to fix for an instance of non-compliance they are liable for up to $200,000 and a further $20,000 per day that the offence is continued.

Page 16 of the compliance handbook has the full outline of what building owners are risking if they do not comply.

The change traces directly back to Loafers Lodge, where systems had been signed off without the checks behind them ever being carried out properly.

Insurance, refinancing and compliance status

The risk doesn't stop at council fines. Insurers are paying closer attention to compliance status when assessing claims, and banks are starting to check it during refinancing of commercial property. A building without properly certified systems can find itself exposed on both fronts at once, regardless of whether a fire or fault ever occurs.

It's a pattern Mike Upton, White's registered IQP for air conditioning systems, has seen play out with clients who assumed another party had things covered. In one case, a client believed an in-house engineering team was maintaining plant that had fallen outside any formal compliance schedule.

That accountability sits with the person who signs the certificate, and as a certified IQP, Mike takes a broader view of the role than simply completing the annual paperwork.

 He has flagged non-compliant systems to clients that fell outside his own inspection brief, because leaving them unaddressed would have left the client exposed regardless of whose responsibility it technically was.

Staying on top of compliance requirements

Staying on top of shifting requirements while running a building is a challenge, particularly when the standards themselves are dense and prone to reinterpretation.

Mike's approach is to work through what a building really needs rather than applying a blanket fix, keeping clients compliant without unnecessary cost.

That means tracking inspection deadlines properly, understanding which systems fall under which schedule, and flagging gaps before an auditor or insurer finds them first.

In an environment where regulations are tightening and enforcement is real, having someone who understands both the technical requirements and how they're being applied on the ground is worth more than it used to be. Building owners can focus on running their business while knowing the compliance side is being handled properly.

Don't let complex regulations catch you out. Contact White's today to find out how Mike can help you meet and exceed regulatory standards.

Information in this article was accurate at the time of publication, but industry standards and regulations evolve frequently. Please consult with us directly for the most current guidance relevant to your specific situation.

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Mike Williams profile picture
Mike Williams
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SPCA New Zealand has worked closely with White Refrigeration across a range of HVAC maintenance, compliance, repair, and project works. Throughout our engagement, Wilson, Mike, and the wider team have consistently demonstrated professionalism, strong communication, and a solutions-focused approach. What stands out is their willingness to thoroughly investigate issues, clearly explain technical findings, and work collaboratively to achieve the best outcome. Their team provides regular updates, practical recommendations, and follows through on commitments, making it easy to manage projects and maintenance activities across a diverse property portfolio. We have particularly appreciated their support on complex HVAC remediation works, preventative maintenance planning, and their proactive approach to identifying potential issues before they become larger problems. Thank you to the White Refrigeration team for your ongoing support. We look forward to continuing to work together in the future.
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Janice Arendse
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Ruhann Koegelenberg
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I work with Whites in a commercial capacity, they are punctual and professional, often helping us out in a pickle. Their pricing is more than fair. I would highly recommend using Whites.
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Phil Hall
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From the initial call to the job completion they kept me informed. The cost was what they said which was good compared to other prices. I highly recommend them
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Krishaneel Prasad
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Zoe B
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Very professional, quick to respond and solve issues. Highly recommended!
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