Experts identify hidden costs

Although the National Home Builders Registration Council (NHBRC) was established to protect home owners and to regulate the home-building industry, ...(Read More...)

The Times - Johannesburg,Gauteng,South Africa
www.thetimes.co.za

Govt plans to repair defective state-built houses

THOUSANDS of defective government-built houses in the Eastern Cape are to be fixed.

The National Home Builders Registration Council (NHBRC) is calling for expressions of interest from suitably qualified companies to rectify all houses in the Eastern Cape with structural defects and not suitable for human habitation.

A total of 11 531 houses have been identified throughout the province for rectification. Municipalities where these houses have been identified are Nelson Mandela Bay, Ukhahlamba, Chris Hani, Amathole, Buffalo City, Alfred Nzo, O R Tambo and Cacadu.(Read More...)

The Herald Eastern Cape - Port Elizabeth,Eastern Cape,South Africa
www.theherald.co.za

Ugie building contractor willing to fix poor homes

POWER Construction, the company that built about 2 000 homes for the poor in Ugie, returned to this north-east Cape town last week, with Housing Minister Lindiwe Sisulu, to tell the community it would accept responsibility for fixing structures if any were found to have been poorly constructed...

Sisulu told the community that she had asked the National Home Builders' Regulation Council (NHBRC) to carry out a forensic audit of the houses built in ...(Read More...)

The Herald Eastern Cape - Port Elizabeth, Eastern Cape, South Africa
www.theherald.co.za

Department cracks down on sub-standard builders

THE national housing department has commissioned the National Home Builders‘ Registration Council (NHBRC) to conduct a forensic audit on selected state-funded housing projects, starting in Transkei, to determine the extent of sub-standard housing in the Eastern Cape.

The move was prompted by housing delivery woes in the province, which was allocated R1,05-billion this financial year by the national government for housing delivery.

Contractors who have done shoddy work, and those who have abandoned construction sites after having been paid, will be tracked down and made to repay the money, be suspended or deregistered...(Read More...)

The Herald Eastern Cape - Port Elizabeth, Eastern Cape, South Africa
www.theherald.co.za

Quality inspection ordered at Eastern Cape housing project

The National Home Building Regulation Council (NHBRC) began a forensic audit into the Ugie housing project in the Eastern Cape on Monday, after a number of ... (Read More...)

Engineering News (press release) - Garden View,South Africa
www.engineeringnews.co.za

David Wentzel: CEO, RBA Housing

... MONEYWEB: Let's take a step back. You create low-cost housing. What exactly is involved in that?

DAVID WENTZEL: Well, it's not actually low-cost. We define it as "affordable housing". Low-cost is about up to R40 000, predominantly government-subsidised. Then "credit-linked", between R40 000 and R250 000 units. And then the "affordable housing" market, which is fully banked from the turn-key residential developments, predominantly for black middle-class people earning a gross salary of between R10 000 and R15 000 a month.

MONEYWEB: And how do you make your money, then?

DAVID WENTZEL: Well, there are three stages in the affordable housing. The first one would be the servicing of the land, then going out, doing the prop structure development, which takes care of the project management, the submission of plans, engineer, architect, getting the sales, the NHBRC enrolment, which gives the client a five-year guarantee. And then the third step is ultimately the construction of the property, prior to handover and retention of that house. (Read the whole article...)... MONEYWEB: Let's take a step back. You create low-cost housing. What exactly is involved in that?

DAVID WENTZEL: Well, it's not actually low-cost. We define it as "affordable housing". Low-cost is about up to R40 000, predominantly government-subsidised. Then "credit-linked", between R40 000 and R250 000 units. And then the "affordable housing" market, which is fully banked from the turn-key residential developments, predominantly for black middle-class people earning a gross salary of between R10 000 and R15 000 a month.

MONEYWEB: And how do you make your money, then?

DAVID WENTZEL: Well, there are three stages in the affordable housing. The first one would be the servicing of the land, then going out, doing the prop structure development, which takes care of the project management, the submission of plans, engineer, architect, getting the sales, the NHBRC enrolment, which gives the client a five-year guarantee. And then the third step is ultimately the construction of the property, prior to handover and retention of that house. (Read the whole article...)

Moneyweb - Johannesburg,South Africa

North West housing project marred by controversy

... Allegations investigated
The department of developmental local government and housing, which is responsible for the project, says the allegations of corruption and maladministration are being investigated. The department is also to meet the construction company.

The Mafikeng local municipality, whose councillors are implicated in some of the allegations, are also conducting a separate investigation.

Corruption and maladministration in the provision of low cost housing projects not confined to this project alone. Some of the houses in this project, have already been declared unsafe by the National Home Builders Registration Council (NHBRC), whose primary task, is to ensure quality and audit of each being built in the country. (Read More...)

www.sabcnews.com

How to avoid the building blues

...At the very least, potential contractors should be registered with the National Home Builders Registration Council (NHBRC) (by the way, the site also has a very useful list of builders whose licences have been suspended. It's very long).

If possible, ask to meet with the foreman who's being proposed to manage your job, and chat to him for long enough to find out whether you'll to be able to work together (because that's what it's all about)...(Read More...)

Fair Lady - Cape Town,South Africa

Property owners object to new code

The SA Property Owners Association (Sapoa) is opposed to a new code of conduct that targets property developers and which appears to clash with legislation. (Read More...)

Consternation amongst developers

THE new Code of Conduct for Home Builders published by The National Home Builders Registration Council (NHBRC) is aimed at the smaller home builder, against whom most protection is needed. But it is also applicable to larger residential developers developing and selling residential dwellings whether freehold or sectional title. This is causing much consternation amongst bigger role players.

“The aim of the Code is the protection of the housing consumer which is clearly needed, and if the Code is strictly adhered to, there is no doubt that consumers will be far better off. The Code is comprehensive and in seeking to address a vast number of issues, contains many quite onerous provisions for the home builder to comply with,” says David Warmback of Shepstone & Wylie Attorneys.

However, he cautions that in an industry which historically has a poor reputation for protecting consumers, particularly in the lower end of the market, it is anticipated that it will take some time before the industry is able to properly embrace the good intentions behind the Code, which came into effect recently.

He highlights some of the significant provisions in the new Code as follows:

• home building contracts may now only be concluded once the housing consumer has had 30 calendar days to view the contract;

• restrictions on clauses in contracts which have the effect of taking away consumers common law or statutory rights;

• restricting deposits to no more than 10% of a contract price of a fixed cost building contract;

• minimum clauses that must be included in a building contract, and an obligation that a home builder must retain a copy of the contract and all records relating thereto, for a period of at least six years;

• a home builder may not accept final payment under a building contract unless the bank, NHBRC or competent person has certified in writing that the work has been completed according to NHBRC’s prescribed minimum standards and guidelines.

In summary, the Code is intended to provide minimum standards to be maintained by all NHBRC home builders when contracting with consumers, says Warmback.

“Banks are not allowed under the Act to lend money to consumers against the security of a mortgage bond registered over a home for the purchase of a home from a home builder,” explains Warmback. “That is, unless the bank is satisfied that the home builder is registered in terms of the Act, that the home is or will be enrolled with the NHBRC and that the prescribed fees have been paid.” (Read More...)

Cape Business News
www.cbn.co.za

Gauteng to work towards promoting social integration

Johannesburg - The Department of Housing will work towards promoting social integration across class as well as between racial groups, said Gauteng Housing MEC Nomvula Mokonyane.

Tabling her R2.6 billion budget vote on Friday at the provincial legislature she said this will be done through the introduction of inclusionary policy.

The policy would require developers of the up market estates to set aside a certain percentage of their housing development to low-cost housing for low-income groups.

"The inclusionary policy is attempting among other things to address the apartheid spatial designs which created arid reserves for one group and plush suburbia for the other, this can be addressed through Mixed-Housing Development programme," said MEC Mokonyane.

Under the Mixed-Housing Development the department has identified flagship projects for each region in Gauteng where there is ongoing work which is at different phases and stages of construction.

"This is the type of commitment we have made and we would like to be judged on," she said.

"Other projects such as Thorn three View and Nelmapius are also on track with houses already constructed and ready for occupation.

"In Doornkop the housing development will consist of about 25 000 different housing units for various income groups," added Ms Mokonyane.

The housing products intended for the project, she said, included fully subsidised housing for the poorest of the poor, affordable housing for other low-middle income households and middle - to - high bonded housing stock.

In Mogale City, the department in partnership with Absa bank has identified a project in Kagiso/Azzadville where they will develop mixed housing with 6 800 different housing units.

Ms Mokonyane also announced that as part of her department's youth empowerment programme, ten youth companies within the housing and construction industry would be awarded contracts to build houses.

"The youth will be taken through the Empowerment Programme so that they become established developers in their own right.

"The department will be enrolling one hundred young people for training in construction, financial management and project management".

This, she explained would be done jointly with Gauteng Youth Commission and Umsobomvu with the National Home Builders Registration Council (NHBRC) providing the technical assistance and training. (Read More...)

By Bongani Mlangeni; tel: (012) 314 2404
BuaNews

Youth to benefit from R24 million housing project

Hammaskraal - Young people will be empowered through a R24 million housing project which will see 600 houses built by two youth-owned construction companies, appointed by the Gauteng Department of Housing.

Apart from this, the department will be enrolling 100 young people for training in construction, financial management and project management.

This would be done jointly with the Gauteng Youth Commission and Umsobomvu with the National Home Builders Registration Council (NHBRC) providing the technical assistance and training. (Read More...)

By Bongani Mlangeni; tel: (012) 314 2404
BuaNews

Clash over EC homes project

Builders working under the People's Housing Process were not required to be registered with the National Home Builders' Registration Council (NHBRC). (Read More...)

Dispatch Online - South Africa

Building council workers on strike

About 250 workers at the National Home Builders Registration Council (NHBRC) downed tools on Wednesday, the National Health and Allied Workers Union (Nehawu) said.

Nehawu spokesperson Kwame Mzileni said negotiations between workers and the employer reached a final deadlock last Wednesday.

The workers - all Nehawu members - are demanding their bonuses which were due in December last year.

"We also do not understand why there is such a huge wage gap between top management and the lowest paid staff. We want that gap reduced," said Mzileni.

He said the current wage gap between NHBRC chief executive Phetola Makgathe and the lowest paid staff was R1,6-million.

"Executive management personnel received wage increases ranging from 33 to 50 percent in 2006.

"They further got an incentive bonus of about five to seven percent without any performance measurement tool in place, while the rest of the staff did not get anything."

Mzileni said it took the employer almost nine months to agree to give workers a seven percent wage increase, although "they didn't think twice before offering increases of 33 percent to some (management personnel) and 50 percent to the CEO".

He said it was "unreasonable" of the employer to be discussing last year's bonuses now.

"It has taken them more than seven months to decide on the issue and that is unreasonable."

The negotiations began in August last year and the last meeting between the two parties was last Wednesday.

The strike action started with pickets outside the NHBRC head offices in Bryanston at noon.

Mzileni said workers were also picketing at the council's regional offices in Cape Town, Durban, Port Elizabeth, Bloemfontein, Nelspruit, Polokwane and Kimberley.

About 250 of the 350 workers at the council took part in the strike and were Nehawu members, said Mzileni.

Management chief negotiator Peter Latta said he was not immediately able to comment, as management was still in a meeting discussing the strike late on Wednesday afternoon. - Sapa

Young people to discuss speeding-up housing delivery.

More than 100 young people countrywide will meet on Thursday with major stakeholders in the housing industry, to discuss how the youth can participate in fast tracking housing delivery.

The Youth Housing Indaba in Bela-Bela, Limpopo is to end on Friday.

"The indaba is expected to develop consensus on youth participation in Housing with key stakeholders in the Housing and Youth Development Sector," said spokesperson for the national Department of Housing, Monwabisi Maclean.

It will outline institutional positions, review projects and policies on youth development across the housing and human settlement sectors...

...This initiative saw the establishment of the partnership between the department, the National Youth Commission, Umsobomvu Youth Fund, National Home Builders Registration Council (NHBRC) and Provincial Housing Departments. (Read More...)

BuaNews
Compiled by the Government Communication and Information System
By Bongani Mlangeni

Rural People to Help Fast Track Housing Delivery

A partnership to fast track rural housing delivery by including rural people and traditional building methods was signed on Friday by delegates attending the Eastern Cape Housing Indaba in East London.

The contract urges for the support of traditional ways of building and ensures that rural people are part of the implementation of the housing programme in order to transfer skills and also create jobs.

"It is important that as we implement government's housing programmes the beneficiaries are part of the building process, by being involved in the building process we restore their dignity and they will look after the house, they will also acquire skills and get employment" said Chief Phathekile Holomisa, a representative of the House of Traditional leaders.

Delegates at the conference resolved to form a social contract for integrated human settlements in rural housing which calls on all stakeholders to work together to fast track housing delivery.

The indaba, hosted by the National Department of Housing and the Provincial Government of the Eastern Cape was attended by government officials, academics, traditional leaders, members of both houses of parliament, business community and different stakeholders in the housing sector.

Opening the indaba last week, Eastern Cape Premier Nosimo Balindlela said the integrated human settlement plan of government will restore the dignity of communities and give many South African's an opportunity to heal.

"The Comprehensive Human Settlement Plan, known as Breaking New Ground (BNG) require that we build rural homes with gardens, space for children to play and also build them with both social and economic amenities," she said.

This, Premier Balindlela explained, would give many of 'our people' an opportunity to enjoy parks and to have access to basic social and economic amenities that are not there in rural areas.

Delegates at the indaba further committed themselves to work towards eradicating of informal settlements by 2014, working with traditional leaders to build sustainable integrated human settlements in rural areas with access to basic services.

They also agreed to engage in a detailed proposal to have full cover insurance for government subsidised houses and called on the National Home Builders Registration Council (NHBRC) to ensure that traditional rural housing methods are researched and enhanced.

Local Government, Housing and Traditional Affairs, Thoko Xhasa said government should ensure that the use of a house as an asset in rural areas does not expose families to financial risks that can lead to evictions and other problems.

"We must find a balance to build sustainable rural communities with access to both social and economic amenities using financial models that will never expose rural people to unnecessary debts," she said.

The indaba also resolved that housing delivery will be supported by job opportunities and building of social infrastructure.

"If we build rural houses with all amenities in line with BNG, those who want to remain in rural areas will remain in rural areas as they will have access to all the things people in the city have" National Housing Director General, Itumeleng Kotsoane said.

Bongani Mlangeni
East London
BuaNews (Tshwane)

New rules to protect consumers from bad builders.

Housing consumers now have much-needed protection against unscrupulous or incompetent builders thanks to significant and far reaching provisions embodied in a new Code of Conduct for Home Builders published by The National Home Builders Registration Council ("NHBRC")...

...Provisions of the Code
Warmback highlights some of the significant provisions in the new Code, which came into effect on 16 March 2007, as follows:

• home building contracts may now only be concluded once the housing consumer has had 30 calendar days to view the contract;
• restrictions on clauses in contracts which have the effect of taking away consumers common law or statutory rights;
• restricting deposits to no more than 10% of a contract price of a fixed cost building contract;
• minimum clauses that must be included in a building contract, and an obligation that a home builder must retain a copy of the contract and all records relating thereto, for a period of at least 6 years;
• a home builder may not accept final payment under a building contract unless the bank, NHBRC or competent person has certified in writing that the work has been completed according to NHBRC's prescribed minimum standards and guidelines.

In summary, the Code is intended to provide minimum standards to be maintained by all NHBRC home builders when contracting with consumers, says Warmback.

A home builder is defined in the Housing Consumer Protection Measures Act ("the Act") as a person who carries on the business of a home builder. Home builders are obliged to register with the NHBRC, must enroll a particular home or development with the Council, submit information relating to a development, and pay a prescribed fee.

"Banks are reminded that they are not allowed under the Act to lend money to consumers against the security of a mortgage bond registered over a home for the purchase of a home from a home builder," explains Warmback. "That is, unless the Bank is satisfied that the home builder is registered in terms of the Act, that the home is or will be enrolled with the NHBRC and that the prescribed fees have been paid." (Read More...)

Article privided by www.property24.com

MEC, contractors to discuss improving low cost houses

A budget of R10 million has been set aside through the National Home Builders Registration Council (NHBRC) to develop a pool of housing entrepreneurs to build low cost houses.

The NHBRC has also committed R7 million to training up young builders through the National Youth Service (NYS) project.

The NHBRC will train 100 young people in Limpopo. (Read More...)

BuaNews, Compiled by the Government Communication and Information System

NHBRC ruk bouers wat laat registreer, se sakke

Die nasionale huisbouersregistrasieraad (NHBRC) oorskry sy wetlike magte deur voor die voet waarborge te vereis van ontwikkelaars wat laat registreer, sê ’n Pretoriase konstruksieprokureur.

Antoinette Slabbert,

Die nasionale huisbouersregistrasieraad (NHBRC) oorskry sy wetlike magte deur voor die voet waarborge te vereis van ontwikkelaars wat laat registreer, sê ’n Pretoriase konstruksieprokureur.

Mnr. Hendrik Markram ondersoek die grondwetlikheid van dié praktyk nadat kliënte aangedui het dat die NHBRC se werkwyse hul sakke knou en hulle só uit die boubedryf dwing.

Volgens wet moet alle huisbouers by die NHBRC geregistreer wees en moet alle huise 15 dae voordat bouwerk begin, ook geregistreer word.

Die NHBRC is in die lewe geroep om huiseienaars te beskerm teen swak bouwerk, maar word gereeld gekritiseer omdat sy waarborgfonds propvol geld is, terwyl hy traag is om eise uit te betaal.

Volgens Markram gebeur dit soms dat ontwikkelaars weens administratiewe nalatigheid projekte laat registreer.

Die wet maak egter voorsiening vir boetes volgens ’n voorgeskrewe formule. As die bouwerk reeds aan die gang is, moet die bouer boonop inspeksiegeld betaal en sertifikate van kundiges verskaf wat bevestig dat die ontwerp en vakmanskap aan die NHBRC se standaarde voldoen.

As die bouwerk oopgegrawe moet word of oorgedoen moet word, is dit alles vir die bouer se rekening. Die laat registrasie word eers aanvaar nadat sulke stappe afgehandel is.

Volgens die regulasies “mag die raad enige waarborg of vrywaring vereis wat hy redelik nodig ag” om die risiko van sy bedrywighede te dek en te sorg dat hy genoeg geld het om moontlike eise te dek.

Volgens Markram vra die NHBRC nou voor die voet waarborge van laat registreerders, al het hulle die boetes betaal en bewys dat niks skort met hul vakmanskap nie. Daar is ook nie sprake daarvan dat die NHBRC te min geld het nie.

Vir een van sy kliënte beteken dit dat hy R800 000 vyf jaar lank in ’n bankrekening moet laat lê omdat sy ontwikkeling van R8 miljoen laat geregistreer is.

Hy sê in ’n ander geval het die bouer nagelaat om een eenheid in ’n groot ontwikkeling te registreer. “Daar is geen verskil in die kwaliteit van bouwerk by dié eenheid teenoor die ander nie, maar tog moet die bouer ’n waarborg daarvoor gee.”

Volgens Markram antwoord die NHBRC nie navrae oor die basis waarop die waarborgbedrag bereken word nie.

Hy sê ontwikkelaars kan nie op gelyke voet met die NHBRC beding nie, want as hulle hul rug styf maak, kan die NHBRC weier om registrasiesertifikate uit te reik.

Ontwikkelaars kan nie hul eenhede van die hand sit sonder dié sertifikate nie, omdat banke dit vereis voordat hulle ’n verband op die eiendom toestaan.

Groot ontwikkelaars gee glo maar die waarborg net om die projekte te kan afhandel. Kleiner ontwikkelaars kan dit egter nie bekostig om geld jare lank so onproduktief te laat lê nie en een van Markram se kliënte het al sy personeel van 50 tot tien verminder. Hy oorweeg dit om heeltemal op te hou huise bou.

Me. Beatrice Motsitsi, woordvoerder van die NHBRC, het bevestig dat waarborge vereis word vir alle laat registrasies en dat die raad meen hy tree binne sy regte op. Sy sê die formule waarvolgens die waarborgbedrag uitgewerk word, is “baie ingewikkeld”, maar die persoon wat dit kan verduidelik, was nie beskikbaar nie.

'Shoddy work' on Cape housing

Cape Town - Poor workmanship on the part of inexperienced building contractors has been blamed for the widespread incidence of structural defects on about 2 500 low cost houses across the Cape Peninsula, the Local Government Research Centre has reported.

The centre - in its SA Local Government Briefing - reported that an investigation by the National Homes Builders Registration Council (NHBRC) had revealed widespread evidence of shoddy brick laying work, poor quality of bricks, damp ceilings, and cracks on the walls as well as bad plumbing.

The registration council's executive technical services director,Jeffrey Mahachi, said most of the 2 473 houses inspected late last year - after numerous complaints from homeowners - had structural defects which, if not addressed soon, may pose a serious threat to the lives of thousands of low-income homeowners.

The audit covered nine areas, including Gugulethu, Manenberg, Mitchell's Plain and Philippi, where houses were checked individually and it was found that 98% of them had defects. (Read More...)

Fin24.co.za, By: Donwald Pressly - Cape Town

Is your developer legit?

Question:
How can one find out if a development company is reputable?

Answer:
A track record means a lot in this business. Find out how long they have been operating for. Do a Google search on the company name and go and check out completed developments. Get hold of the chairperson of the body corporate and ask him or her a couple of probing questions. They should be registered with the NHBRC (National Home Builders Registration Council) and the Master Builders Association.

Be cautious; pay as little up front as possible. Do not sign any blank release forms and ensure that the correct money gets paid over to the developer as the project proceeds. Check out their PC lists (personal choice) to make sure that the values they have attached to fittings represents fair value.

For example, they might tell you that they have allocated R70 per square metre for carpeting but it is impossible to get carpet for less than R110 per square metre.

iafrica.com, Iona Minton (Article...)

NHBRC Question: Can I use a mix of new and second hand bricks?

There is nothing wrong with the mix provided the builder is using the same type of bricks. For example, you cannot mix concrete and clay bricks because they have different performance properties, which may result in cracks.

Residential property shock

Johannesburg - South Africans planning to buy units in new housing developments are going to be forced to accept the poor as neighbours in terms of a draft government policy.

This is the purpose of the new policy of "inclusive" housing which is being discussed with players in the building industry.

The new policy, which is still only in proposal form and was presented for the first time to the South African Property Owners Association (Sapoa) a month ago, has sent shockwaves through the developers sector.

Developers said the proposed policy regulations were not only unachievable and ill-considered, but would bring the residential building industry to its knees.

Jo Pelser, chief executive of Sable Homes, one of South Africa's biggest developers, said: "Nobody would be willing to buy units in such developments."

R50 000 houses

This would lead in turn to a shortage of houses in established areas, which could cause a price explosion for existing houses.

In terms of the policy, developers would have to put aside 30% of the value of each development for low-cost housing (Read More...)

By: David van Rooyen
www.fin24.co.za

Property News - Growth Potential for Township Housing

PAM Golding Property's Empowerment Division believes that by the end of last year approximately 15% of new buyers that entered the market were from the emerging market. CE Andrew Golding says: "With the residential real estate industry estimated to be worth about R200bn a year, we anticipate R25bn-R30bn worth of new buyers will have entered the market during the course of this year."

While the township market is experiencing a shortage of existing houses, he says that in catering for new entrants to the housing market a high level of development is occurring both in the township market and in peripheral areas, which provide easy access to cities and are within easy reach of commuter nodes. (Read More...)

Business Day - Johannesburg (Friday, January 19, 2007)

About the NHBRC: Offences

1. Section 10: Failure to register with the NHBRC
2. Section 14: Failure to enroll the new home 15 days prior to construction.
3. Section 19: Obstructing the NHBRC inspectors from executing their duties.
4. Section 18: To finance or register a bond on a new home without ensuring the builder is registered with NHBRC and the home are enrolled.
5. Section 18.(2) Failure by conveyancer to ensure that the builder is registered and that the home is enrolled.
6. Section 18.(3) Failure by subsidy provider to ensure builder is registered with NHBRC and the home is enrolled.
7. Section 21.(a) Withholding information or giving false or misleading information.
8. R 20658 Sect. 15: Failure to declare late enrolments.

For more information on how The Facilitators can assist you with the NHBRC, please visit our website or contact us on 0861 2 36765