Builders are worried a new requirement to cover defects in some residential new builds and renovations for a year after completion will unintentionally shut many out of the market. The government is making changes to the Building Act, including bringing in a proportionate liability scheme, meaning councils will no longer be the last man standing dealing with building defects. Instead, each party will be responsible for their share of the work. Combined Building Suppliers Co-operative surveyed hundreds of builders and construction businesses on the planned changes - most of which were sole traders or small firms with five or fewer staff. Two thirds were worried they wouldn't be able to afford insurance to cover such a warranty, with a third saying without cover they would stop residential building altogether. Carl Taylor is the Co-operative's chief executive, and a builder. In a statement, Building and Construction Minister Chris Penk said the changes being made were industry-informed and struck the right balance.