Julien Leys: Building Industry Federation CEO on the changes to insulation standards

Support for the Government's move to change rigid insulation standards. 

It's expected building code insulation requirements will be relaxed by year's end in a bid to cut construction costs. 

The Government's called the changes "common sense", with building costs rising more than 40% since 2019. 

Building Industry Federation CEO Julien Leys told Mike Hosking the current 'one size fits all' approach isn't working. 

He says the rules force people to use an exact amount of insulation, meaning it's expensive and over the top. 

The Government's also looking to make the Far North a separate 'climate zone', stating the region’s warmer climate allows for a more tailored approach. 

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Episode Transcript

Speaker 1 (00:00):
We've got movement into the construction sector to tell you
about this morning as well. Overall, our insulation requirements going
to change. What we're doing is a whole of house
approach and that allows more flexibility into potential saving it.
They say fifteen thousand dollars off a new build. So
Julian Laser is the chief executive of the Building Industry
Federation and he's with us.

Speaker 2 (00:18):
Julian morning, Good morning, Mike.

Speaker 1 (00:20):
The schedule method doesn't allow for design trade offs. I
read in the early hours of this morning. What does
that mean?

Speaker 2 (00:27):
Well, look at the one size fits all. So basically
what that is, it's a straight jacket. It forces you
to use an exact amount of insulation depending on what
zone that we live in. But it means it's more
expensive and potentially over the top. So doing away with
it and relying on the calculation modeling methods means that
we're going to have a lot more flex so designers

(00:48):
can use a bigger range of materials, which ultimately will
bring costs down.

Speaker 1 (00:54):
Okay, so if you do the right thing by the
end of it, you'll get there. As opposed to it
is super prescriptive currently, is what we're saying.

Speaker 2 (01:03):
Yes, I mean the schedule method though, to be fair,
it's simpler to use. You know, there's a simple table,
so you and I could look at that and understand it.
MB could have adjusted the minimum our values and so
that the schedule method would have still come out with
the same outcome. This way, though, means that ultimately you
you probably do have to depend on a designer or

(01:25):
an expert to help you do the final calculations. But
there's a lot more flex and that's the key.

Speaker 1 (01:32):
Does that explain the twelve months sector transition? Do we
need a twelve month transition? Is it because of that
complexity you've just outlined?

Speaker 2 (01:40):
Yes, it is, And look, some of the industry wanted longer.
I think twelve months will be long enough just so
people can adjust themselves to the having to do the
slightly differently.

Speaker 1 (01:52):
It's definitely enough time good And does the fifteen thousand
per house on average sound about right to you? Because
that's a decent chunk.

Speaker 2 (02:00):
There's a decent chunk. Look, I think time will tell.
I think that the majority of residential dwellings is probably
going to be the cost difference around a little bit
more modestly to say four to five K, but potentially
up to fifteen.

Speaker 1 (02:16):
Okay, good to talk to you. You have a good
weekend as well, Julian Lace four to five K versus fifteen.
Have to talk to Chris Pink next time I have
him on the program. You're inflating the old numbers, Christopher.
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