The Real Meaning Behind “BUILDING COST” On A Consent Application

When homeowners, architects or agents fill out a building consent application, one question often feels harmless enough: “Estimated value of building work.” Most people assume this number is used simply to calculate a processing fee or set an initial deposit. In reality, it carries far more weight than many homeowners realise — influencing levies, charges and costs that extend well beyond the consent itself.

This question appears early in the application process, usually at the stage where basic project details are being entered into the consent system. It is typically phrased in broad terms — “estimated value of building work” — without further explanation of what should be included or excluded.

In practice, the number entered is usually the overall renovation or building budget combining structural work with cabinetry, finishes, appliances, window upgrades and other items. This figure is often treated as an administrative estimate rather than a regulatory declaration. There is an assumption that it helps council gauge the scale of the project, set deposits, or allocate processing time — not that it will be used as a basis for statutory charges.

Under the Building Act 2004, the “estimated value of building work” is not just an internal council reference. It is the legal basis for collecting national levies. That obligation sits in section 53 of the Building Act 2004, which states that an applicant for a building consent is liable to pay a building levy, calculated on the estimated value of the building work to which the consent relates. The Act states:

“A person who applies for a building consent must pay a levy to the chief executive, calculated in accordance with the regulations, on the estimated value of the building work to which the consent relates.”(Building Act 2004, section 53)

In other words, once a value is entered on a consent application, it becomes the statutory trigger for levy calculations set by regulation — and ultimately determines how much is paid for the consent, beyond basic processing fees. And what's more important, the Act does not refer to total renovation budgets or project costs in a general sense — it refers specifically to the building work covered by the consent.

To see how this plays out in practice, consider a common renovation scenario. To keep the numbers grounded in reality, the following example uses the current Auckland Council building consent fee structure for the 2025–2026 year, as published on the council’s website. This includes the nationally imposed MBIE building levy, the Building Research (BRANZ) levy, and Auckland Council’s accreditation levy, all calculated in accordance with the council’s published schedule. RENOVATION SCENARIO: A house is being updated with the aim of creating a more open living space. One internal wall between the kitchen and living area is removed and replaced with a structural beam. Because the wall is load-bearing, this part of the work clearly requires a building consent.

Alongside that structural change, the rest of the house is also refreshed. The kitchen is replaced with new cabinetry and appliances. Flooring is updated throughout. All of the old single-glazed windows are replaced with double glazing on a like-for-like basis. No sanitary plumbing is altered, and no additional fixtures are added.

From a Building Act perspective, only one part of this project actually requires consent: the removal of the load-bearing wall and installation of the beam. The kitchen fit-out and the window upgrades fall under Schedule 1 exemptions.

When the consent application is completed, however, the “estimated value of building work” is entered as the total renovation budget, around $300,000. It feels logical — that’s what the project costs overall. Because the declared value exceeds the statutory thresholds, national levies apply. Because the declared value exceeds the statutory thresholds, several levies are triggered automatically. The MBIE building levy is charged at $1.75 per $1,000 of building work over $65,000, adding just over $410. The Building Research (BRANZ) levy, charged at $1 per $1,000 of work over $20,000, adds another $280. On top of that, Auckland Council applies an accreditation levy of 56 cents per $1,000 of declared value, contributing a further $168.

Before inspections, before processing time is reconciled, and before any work begins, the single figure written on the application has already generated close to $860 in levies — much of it calculated on work that is not part of the building consent at all.

Now imagine the same project declared differently. Instead of listing the full renovation budget, the declared value reflects only the building work that actually requires consent — the removal of the load-bearing wall and installation of the beam — at around $35,000. At that level, the statutory picture changes immediately. The MBIE building levy does not apply at all, as the declared value falls below the $65,000 threshold. The Building Research (BRANZ) levy applies only to the portion over $20,000, resulting in a charge of approximately $15. Auckland Council’s accreditation levy, calculated at 56 cents per $1,000, comes to just under $20. In total, the levies amount to less than $40.

The drawings, inspections and structural risk are identical — the only difference is the number written on the application, resulting in around $820 paid out of homeowner's pocket that didn’t need to be paid.

This is why the “estimated value of building work” matters far more than it appears at first glance. It is not a record of what a renovation costs overall. It is a regulatory figure that determines how much is paid as part of the consent process — and once it’s entered, it quietly does its work in the background. This is why understanding what actually counts as building work requiring consent matters. The “building cost” on a consent application is not meant to reflect the total renovation spend.