Document type: Practice Note Title: based business activities Document number: AC2201 Version: 2

1. Purpose The purpose of this practice note is to describe how applications involving a home-based business such as a hair dressing salon or beauty parlour should be assessed for compliance.

2. Definition of home based business A home based business is one in which a commercial enterprise (business) is operated from a residential property and includes but is not limited to a hair salon, office, transport company, etc where customers are expected to visit the premises and pay for personal or professional services.

3. Legislative requirements This practise note only deals with matters from a Act perspective; Resource Management Act issues are not covered. Planning approval must be sought separately, if required.

The application for building consent is assessed under s.112 ‘alterations to existing ’. Section 112 states that a BCA only need grant a consent for the alteration of all or part of an existing building if it is satisfied that, after the alteration the building will comply as nearly as is reasonably practicable with the provisions of the Code that relate to:- • means of escape from fire (i.e. install smoke alarms); and • provision for access and facilities for people with disabilities; and • continue to comply with other provisions of the Code to at least the same extent as before

Schedule 1 of the Building Regulations 1992/150 describes a dwelling as being a building where a group of people live as a single household or family. Commercial buildings are described as those where any natural resources, goods, services or money are either developed, sold, exchanged or stored. • This means that if the dwelling is operating as a business that it has a mixed use, with the primary purpose group being housing.

When considering the circumstances of the home based business, we must go back to the first principles of the Act; that is we are trying to protect life and other people’s property. Therefore if the addition of a home based business could inflict greater chance of damage to other peoples property or more people being exposed to a fire hazard then this should be subject to some scrutiny (by the operation of the Building Act).

If the home based business is based around inviting members of the public to the building for some personal service then this must increase the likelihood that if a fire occurs, that occupants might be exposed to danger.

Similarly, if the home based business increases the likelihood of damage to other property because the fire risk is increased, or the fire load is more than would be expected in a normal household, this would also require some action.

Fire safety precautions will depend on the location and nature of the business. For example, the nature of the business maybe such that there is very little risk, for example baking cakes or making jams or pickles for charity, sewing, packaging articles for shipment, operating an accountancy or

Page 1 of 2 April 2014 AC2201 (v.2) hairdressing business or mechanical , etc operated solely by the owner and no staff employed.

Other businesses may have a higher risk such as those that employ staff, those operating a commercial producing large quantities of goods for resale; operating a hair dressing salon, which has 2 or more seats or operating a panel-beating with a spray booth.

4. Documentation for consent Applications for building consent must be accompanied by a statement from the owner describing the business activities; this will allow the risk to be established. Having the full picture will enable the processing officer to make an informed decision as to risk.

The statement should describe the business activities:- • Does the owner intend be a sole-operator or employ staff? • How many people will the business employ? • Will the business operate on a part-time or full-time basis? • Will staff work on the property or use it as a base? • Will members of the public actually visit the premises? (E.g., some people work from home using the internet and never have people call at their place of business). • How many people are likely to visit the premises daily / weekly or monthly? • Will any hazardous goods be stored on the premises? • What is the risk to the occupants because of the business operations?

For simple, low-risk applications a fire report is not required; however, if the risk is assessed as high or the business employs staff, applications should be supported by a fire report to enable the processor to assess the particular situation and make an informed decision in terms of means of escape from fire, accessibility and other provisions of the code.

As a minimum, smoke alarms (preferably interconnected) will be required in all cases

In all instances, decisions, reasons for decisions and outcomes must be recording as to how compliance has been assessed.

5. Specified systems Under s.100 (1) (a) of the Act, a building not used wholly as a single household unit (i.e. a business operates within the dwelling) requires a compliance schedule if it has a specified system.

6. Planning advice Please note that this practice note does not include planning advice; applicants must contact the Planning Team to determine whether the activity is permitted and / or whether resource consent is required.

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