If you build bathrooms, tile wet areas, or install level-entry showers, a significant licensing change is heading your way. The Ministry of Business, Innovation and Employment (MBIE) is introducing a new Licensed Building Practitioner (LBP) waterproofing licence class, and at the same time, disciplinary penalties for LBP misconduct are doubling. If you do Restricted Building Work involving waterproofing, this could directly affect your ability to practise — and your wallet.
Here's what every NZ tradie needs to know.
What Is the New LBP Waterproofing Licence Class?
Waterproofing has long been one of the most common sources of building defects in New Zealand. Failed waterproofing in wet areas — bathrooms, showers, tiled floors adjoining outside areas — leads to leaks, structural rot, and expensive remediation. Historically, this work was not regulated as Restricted Building Work, meaning virtually anyone could apply membrane or do wet-area tiling regardless of their skill level.
That is changing. Under upcoming reforms confirmed by Building Performance (part of MBIE), a dedicated waterproofing licence class will be added to the LBP licensing scheme. Once in effect, tradespeople carrying out waterproofing in wet areas — including bathrooms, level-entry showers, and balconies — will need to hold this licence to legally perform that work as Restricted Building Work.
The reforms are planned to take effect in 2026, though exact commencement dates are still being confirmed by the Ministry. Tradies who do this work regularly should monitor the LBP website and MBIE updates closely.
Who Is Affected?
The new waterproofing licence class will most directly affect:
- Builders who complete bathroom renovations and wet-area fitouts
- Tilers who lay tiles in bathrooms, showers, or on balconies
- Waterproofing contractors applying membrane systems in residential construction
- Plumbers and drainlayers whose work sits adjacent to waterproofed areas
If you're a builder who project-manages bathroom renovations and subcontracts the waterproofing, you'll still need to ensure the person doing that waterproofing is licensed. Signing off on work done by an unlicensed person could expose you to liability under the Building Act 2004 and the LBP disciplinary regime.
Disciplinary Fines Are Doubling — From $10,000 to $20,000
Alongside the new licence class, the government is significantly toughening the disciplinary regime for all LBPs. Under the reforms:
- Maximum fines for disciplinary offences double — from $10,000 to $20,000
- Maximum suspension periods double — from 12 months to 24 months
- The Registrar will be able to triage complaints and appoint investigators more efficiently
- Details of suspended LBPs will be published publicly, meaning a suspension could damage your reputation as well as your income
This applies not just to waterproofing — these tougher penalties affect all six existing LBP licence classes (design, carpentry, external plastering, brick and block laying, roofing, and site). The message from MBIE is clear: professional licensing carries real accountability.
If you're already an LBP, now is a good time to check your compliance. If you have a disciplinary matter outstanding or have received a complaint, get legal advice early. A $20,000 fine and two-year suspension would be devastating for most sole-trader tradies.
What Does It Mean for Your Existing LBP Licence?
For most existing LBPs, the immediate impact of these reforms is awareness rather than action. Your current licence class is unaffected. However:
- If you currently do waterproofing work as part of your carpentry or site scope, you'll likely need to add the new waterproofing licence class once it becomes Restricted Building Work
- The application process will likely involve demonstrating competency — either through assessment, work history, or both (the exact process is yet to be confirmed)
- There may be a transition period allowing existing practitioners to continue while they apply, similar to how the LBP scheme was originally phased in
Check your annual CPD requirements are up to date in the meantime. You must complete at least one skills maintenance activity per year and record it in your LBP profile. Our guide to LBP CPD compliance and renewal explains how to stay on track.
Why This Matters Beyond Licensing
The timing of these changes reflects broader pressure on NZ's building quality record. Leaky building syndrome cost the country billions. Water ingress and failed waterproofing remain a top cause of disputes, insurance claims, and Consumer Guarantees Act complaints against builders.
For tradies, doing waterproofing work correctly isn't just about avoiding fines — it's about protecting your business reputation and avoiding liability. A bathroom waterproofing failure that doesn't show up for 12 months is still your problem, especially if the homeowner can tie it back to your work.
Good documentation helps. Always record the products used, application method, and inspection sign-off before tiling over any membrane. Fastcrew is a tradie app built for NZ that makes job documentation and on-site record-keeping straightforward — useful if your work is ever scrutinised by a Building Consent Authority or a disputes tribunal.
Practical Steps to Take Now
1. Find out if your work qualifies as waterproofing
Talk to your local Building Consent Authority (BCA) or review the Building Performance guidance. Applying waterproofing membrane in a bathroom before tiling is the most common scenario, but balcony and deck waterproofing may also be captured.
2. Decide whether to add the licence class
If you do this work regularly and charge for it, a waterproofing licence will be commercially valuable — it will differentiate you from unlicensed operators and give homeowners confidence. If you only do it occasionally, you might subcontract it to a licensed specialist once the rules come in.
3. Get your LBP profile in order
Make sure your address, contact details, and CPD log are current at lbp.govt.nz. When the new class is announced, registered LBPs in relevant trades will likely be notified directly.
4. Price waterproofing work correctly
Waterproofing materials and labour are separate costs that many tradies underquote. Membrane products, primer, tapes, and corners add up. Use our hourly rate calculator to make sure your labour rate covers the time spent properly preparing and applying membrane — not just the tiling on top.
5. Keep up with the announcement
MBIE and Building Performance typically give several months' notice before major changes take effect. Subscribe to their email updates at building.govt.nz to avoid being caught off guard.
The Bigger Picture
The new waterproofing licence class is part of a broader effort to raise the quality bar in NZ residential construction. Combined with the granny flat consent exemption — which requires all regulated work to be done by licensed tradespeople — the government is effectively tightening who can do what without increasing red tape for consumers.
For skilled tradies who are already doing this work properly, getting licensed is a competitive advantage. It signals quality, reduces your liability exposure, and positions you ahead of unlicensed operators who won't be able to legally carry out this work once the rules land.
Download our free NZ tradie templates at tradietools.nz/templates/ — including job record sheets, subcontractor agreements, and site inspection checklists to help you stay compliant.
NZ Tradie Tools provides free calculators, templates and guides for New Zealand tradies. Visit tradietools.nz.