New Zealand surveyors have backed a proposed shift to proportionate liability on buildings if it is accompanied by “robust” insurance and a focus on higher construction standards.

“Insurance is vital to making proportionate liability work effectively, but it’s not the whole puzzle,” New Zealand Institute of Building Surveyors president Darryl August said.

“We need a building industry that consistently delivers higher-quality homes with fewer defects. That only comes through better education, higher professional standards and a commitment to doing things right the first time.”

New Zealand plans to scrap the “joint and several liability” framework and replace it with proportionate liability, helping councils that have sometimes been left to pay for the poor building work of other parties.

Building and Construction Minister Chris Penk says the current system means councils are hesitant to sign off on consents and inspections because they could be held liable for all defects.

The government is also exploring options such as mandatory professional indemnity insurance and home warranty arrangements to address concerns that consumers would be exposed to risks flowing from the change.

Legal firm Wotton Kearney says the Law Commission previously noted that a proportionate model shifts responsibility for the uncollected share of liability onto the “blameless homeowner”, and it was not convinced it was appropriate.

The commission “looked favourably” on a building warranty scheme, provided it was adequately funded and competently operated.

A draft bill covering liability setting changes is expected to be introduced to parliament early next year.