Thursday, 04 December 2008

Bad builders: what to do?

Before you sign a contract with any builder, check references as banks do not protect clients from unscrupulous builders, says home loan executive.

Property owners are often ripped off by builders. Some do not complete building the house, others build poor quality and sub-standard houses, said Luthando Vutula, managing executive of Absa Home Loans.

Vutula said where a property owner finds him or herself in such a situation, banks do not protect the owner from the builder.

The contractual obligation that banks have with the client is in terms of the mortgage loan agreement, said Vutula.

He advises that before an owner employs the services of a builder, he or she needs to ensure that they fully understand the content of the building contracts that they sign.

In particular, pay attention to payment clauses, the building specifications and time clauses.

"Always conduct reference checks on the building contractor before signing agreements," he said.

Where the owner is not satisfied with the standard and quality of work, speak directly to the builder or developer (whichever is applicable).

This engagement will give the builder the opportunity to address concerns expressed by the owner and rectify the problem.

If no resolution is reached , as a last resort the owner can instruct the bank to make no further payment on the building until the work has been done to the owner's satisfaction and concerns fully dealt with, said Vutula.

Banks are not party to the building contract signed between the client and the builder.

For this reason, any disputes between the two parties should be taken to the National Home Builders Regulatory Council (NHBRC), a body which protects the interest of consumers and regulate the home building industry.

Vutula said the NHBRC protects consumers from builders who either build to an unacceptable quality standard or builders who refuse to get involved in the rectification of built-in defects in the home.

Although the bank cannot recommend builders to its clients, the legislation stipulates that all builders involved with building projects that are subject to a mortgage loan should be registered with the NHBRC.

Information on registered builders can be obtained form the NHBRC, said Vutula.

While building contractors are not the same, it remains the owner's responsibility to carefully peruse the contract before signing. It is advisable to obtain legal advice for clarity on the contract terms and conditions to avoid unpleasantness with the builder at a later stage, he said.

For example, said Vutula, the client is obliged to pay the builder for work that is satisfactorily completed and the builder has obligations to provide his services as per stipulations in the building contract.

When a client applies for loan on building works on their property, the bank appoints a valuer whose does checks on the construction or building site to ensure work is being carried out in accordance with the minimum building requirements and plans submitted to the bank.

"The client has a right to withhold payment from the builder if the work done is not up to standard," said Vutula.

If this happens, the client should first familiarise themselves with the contract and also be aware of their legal position regarding withholding funds, said Vutula.

He added that the bank can only act on instructions from the client to not to proceed with payments to the builder.

Denise Mhlanga
Realestateweb.co.za - Johannesburg,Gauteng,South Africa

Mhlahlo engineers a turnaround in housing.

AFTER taking office in August, Housing MEC Thobile Mhlahlo vowed not to allow a cent of his R1,2-billion in conditional grants to remain unspent, and set the department a target of building 15000 new homes before the end of this financial year.

He said the department would recall allocated budgets from all municipalities that were not spending them, so they could be redistributed to other projects.

“At the beginning of this term I called public and private sector financial institutions together at a breakfast meeting to introduce my ambitious multi- million-rand housing turnaround delivery plan.”

He said major banks, including Absa, FNB, Standard Bank and Nedbank, as well as other public and government financial institutions such as the Development Bank of Southern Africa (DBSA), the National Housing Finance Corporation (NHFC) and the National Urban Reconstruction and Housing Agency (Nurcha) were already working with his department on housing projects.

About R464-million of the conditional grants have already been spent, and Mhlahlo has approved funding amounting to R285-million for other housing projects in the province.

“The consultative breakfast meeting was a culmination of meetings that I had with contractors, municipalities and NHBRC as part of my intervention plan to remove stumbling blocks (projects that had stalled due to lack of finance) in the province.

“After the meeting with all the banks I had individual one-on-one meetings with Absa, FNB and Nedbank.

“FNB has purchased a pineapple field near the Da Gama Textiles factory on the way to East London that is big enough to build 6000 houses on and I have appointed a task team to facilitate the process of engaging other stakeholders like Buffalo City to come on board.”

Mhlahlo has handed over 500 houses from the Sundays River municipality, 300 in the Nomathamsanqa township in Addo and 200 in Kirkwood.

Some 5475 houses will be handed over in Nelson Mandela Bay shortly. Of these, 900 will be handed over in Joe Slovo before Christmas, while others will be handed over in areas like Bethelsdorp, Matthew Goniwe and Chatty before the end of this financial year.

“Some of the beneficiaries of these houses are seasonal farm workers who depend on old age grants, domestic workers and other people who earn less than R1000 a month,” he said.

Mhlahlo also introduced the Sakhi‘themba graduate development programme in October.

“The project is aimed at creating employment opportunities for young people and also to address the challenge of lack of monitoring.

“It will also be reviewed after two years.”

Some of the problems Mhlahlo said he had faced during his 100 days of office included:

Contractors assuming developer status with limited capacity and resources.

Slow implementation of projects by implementing agents.

Slow processes of municipalities – especially on blocked projects.

Poor performance of contractors.

Lack of monitoring and evaluation of projects.

Land availability.

“We have tried to solve some of these problems, but now the biggest challenge we are facing is that of municipalities not spending the monies allocated to them.

“We have found that they do want to spend the money but many did not know how. My department is assisting those municipalities that want to be helped,” he said.

Khanyi Ndabeni
The Herald Eastern Cape - Port Elizabeth,Eastern Cape,South Africa

Thursday, 13 November 2008

Residents live in fear of collapsing mansion

This is the hillside mansion residents live in fear of. Now the City of Johannesburg wants the High Court to order its demolition.

But residents of Quellerina, in Roodepoort, fear the order will come too late.

Perched atop a ridge, the triple-storey house is cracked and a large part of its retaining wall has collapsed.

Several properties lie below the house, all in serious danger should it collapse.

The problem, the municipality and other building officials have said, was evidence of shoddy workmanship.

Poor design, poor-quality building materials and poor workmanship have all been blamed for the situation.

Council spokesperson Nthatise Modingoane said the council had compiled a report which would prove the house was "an imminent danger".

He refused to reveal who the house's owner was or why the council had allowed the building to be put up.

"The matter is being dealt with by the city's development planning and urban management department, and it is at an advanced stage," he said.

However, residents are scared now that it's the rainy season.

"We find ourselves thinking that it is going to collapse (every time it rains), but the council won't do anything about it until people are dead or property is damaged," said resident Natalie Pereira.

"Walls started coming down seven months ago and we immediately notified the council, but we're still waiting."

Local councillor Steve Kotze said it was surprising that the structure had been allowed to go up while the council was supposed to have been monitoring safety and quality standards.

"Looking at those cracks, one wonders if the council had approved the house plans at all. If people are killed, what sort of excuse are we going to have from the council?" he said.

"This is a matter of life and death and I think something needs to be done to save lives and property while awaiting the court order."

The Star took the matter to the National Home Builders' Registration Council (NHBRC), which protects the interests of builders and homeowners, regulates the industry and monitors standards.

After visiting the property in Maluti Street, an NHBRC official's report agreed that poor workmanship was at fault, and it also identified other problems.

"The property poses a serious threat to life as well as to other properties downhill. Serious measures must be taken urgently in order to protect lives," the report found.

NHBRC head Phetola Makgathe said either the contractor or the engineer could be blamed for the problem.

"The engineering fill was not properly compacted, hence the retainer wall falling. The engineer who approved the structure could have monitored the compaction," he said.

"The builder has deviated from normal building standards in that he did not use any brickforce in walls, and slabs were not properly reinforced."

Makgathe said one option besides demolishing the house was to seek an engineering solution. This meant finding a qualified and approved engineer who would redesign the whole structure.

"This could mean half of this house must be reconstructed, and that could cost three times more than the original building cost.

"A structural engineer would also be needed to monitor reconstruction of the house, especially the retaining walls," Makgathe said.

All attempts to contact the owner of the house, who is known to The Star, failed.

A reliable source within the municipality said the owner was attempting to halt the demolition of the house, saying he would repair the dwelling and sell it to recoup his losses.

Meanwhile, Quellerina residents hope the house stays intact until a demolition order has been obtained.

By Poloko Tau
www.iol.co.za

Thursday, 23 October 2008

Gang of 15 caught in the act on CCTV

These hoodlums were captured on security cameras cleaning out the offices of the National Home Builders Registration Council (NHBRC).

Now police are looking for them.

The footage, which was handed to the Randburg police, shows a group of about 15 men entering the NHBRC offices in Bryanston on the night of July 27.

Security manager at the facility Willie Meela said the group gained entry to the premises by telling the staff at the gate that they were delivering parcels.

On the video footage one of the thugs can be seen entering the reception area with a parcel marked NHBRC.

While security personnel prepare to fill in a parcel register a second man, also armed with a phoney parcel, enters.

One of them draws a gun and instructs the two officers to kneel down. Once they have tied them up other accomplices can be seen entering the building.

Without any hesitation the two thieves dismantle a Plasma TV hanging on the wall, while the rest go to the storeroom and begin removing new computers, laptops, LDC monitors, Sonny projectors and servers worth R671000.

Another thief can be seen opening a gate leading to the basement so that a bakkie and a car can enter. The two cars swiftly pull off after being loaded with goods.

Their luck ran out when, a few weeks later, police spotted the van used in the operation loaded with computers stolen from another company.

Meela said: “After effecting an arrest police discovered that the owner of the van was being held at the Hillbrow police station in connection with an unrelated crime.

He said four suspects, believed to be members of a syndicate, are foreign nationals. Anyone with information can contact detective Moloko Motau on 072-675-4540 or Willie Meela on 079-529-6218.

Cecil Motsepe
www.sowetan.co.za

Thursday, 02 October 2008

New foundation technique gives hope for RDP houses

A BRAND new civil engineering franchise in the Eastern Cape claims to have the answer to building good quality RDP houses.

GeoBUILD Eastern Cape last week demonstrated to Nelson Mandela Bay officials and contractors an innovative method of constructing foundations which could save money and time, as well as improve the quality of houses. On a recent visit to the metro, Housing, Safety and Liaison MEC Thobile Mhlahlo highlighted various problems contractors faced delivering high-quality RDP houses, including high costs, time constraints and problematic surfaces such as clay at the sites for these houses.

GeoBUILD uses a construction product, approved by the National Home Building Regulation Council (NHBRC), called Multi Modula.

Small hollow pods made from recycled polypropylene are packed over a levelled footprint area. Concrete is then poured over them. Structural engineer and GeoBUILD director Henk Fourie said the method used 47 per cent less concrete and 35% less steel than traditional methods, was easy to implement, and sorted out problems related to clay.

The method has been used around the world for the last 22 years and in South Africa for the past 18 months, during which 13000 RDP houses have been completed using the method.

Municipal spokesman Lourens Schoeman said the metro would be discussing GeoBUILD‘s construction method.

Yolandé Hayward HERALD REPORTER
www.theherald.co.za

Tuesday, 16 September 2008

Nearly 20000 EC houses identified as defective

NEARLY 20000 houses in the Eastern Cape have been identified as defective, Housing Minister Lindiwe Sisulu has told the National Council of Provinces.

Replying to a written question from Watty Watson (DA), the minister said that 19953 houses that had been built in the Eastern Cape were defective, with 150 units at “various states of completion”. The total cost of repairing the houses is about R99,7-million.

Sisulu said provincial housing departments had initiated a process to determine the number of housing units with building defects.

Various methodologies such as surveys and requests for beneficiary applications had been used to determine the projects involved and the number of units with defects that needed to be repaired.

The services of the National Home Builders Registration Council (NHBRC) were being used “to ensure that the same contractor who initially built the units, is not appointed to do the rectification and that contractors appointed adhere to the necessary requirements”.

She said the verification process to date had revealed a number of projects with some sub-standard workmanship and the findings had been forwarded to the relevant provincial departments “for further investigation”.

Patrick Cull - POLITICAL CORRESPONDENT
The Herald

Tuesday, 26 August 2008

Builders' Gripe with NHBRC

IN light of recent issues highlighted by key industry bodies, the Master Builders Association of South Africa (MBSA) as well as a number of construction industry associations and industry professionals - including engineers and architects - met last month in Cape Town to discuss the role of the National Home Builders Registration Council (NHBRC).

According to Rob Johnson, executive director of the Master Builders Association of the Western Cape (MBAWC), the meeting was called to examine recurring issues faced by individuals and organisations when dealing with the NHBRC and to discuss a way forward to avoid such occurrences in future. “We decided it was about time that the relevant parties joined forces to resolve the ongoing problems that have been highlighted by a number of our members. The aim of the meeting was to discuss the issues at hand and decide on a constructive way forward.”

Topics brought to the attention of the chair included, among others, the lack of service delivery, inadequate communication from the NHBRC, unfair enrolment procedures and problems with the handling of non-compliances.

The meeting was attended by representatives of the NHBRC, including the chairperson Sibongile Nene who addressed the audience and said that she was happy that the forum had been called and that a united step forward was the only way to resolve current issues.

Johnson explains that a task team will now be established to present the issues discussed at the meeting directly to the NHBRC in an attempt to facilitate a resolution. “We are aware that the problems cannot be resolved overnight, but we feel that this is a step in the right direction and both the NHBRC and the MBSA are committed to positive change and the improvement of procedures to strengthen our industry,” says Johnson.

The Master Builders and Allied Trades’ Association (MBA), Western Cape, is a registered trade association for employers in the building industry. Its membership comprises some 400 companies, most of whom are either builders, building subcontractors, building merchants or manufacturers of building products.

Membership of the MBA is on a voluntary basis. Its members handle some 70% of all the building work in Cape Town and employ a similar percentage of the total building industry workforce.

Apart from campaigning for continually higher standards, the association also plays an active role in industrial relations, the drawing up and adaptation of the building contract law, safety procedures and, most importantly, training.

“In the last field, particularly, the MBA, Western Cape has for many years been the acknowledged leader.”

“Some 50% of all the training done for the building industry nationwide takes place in the Western Cape - and we have a proud tradition of producing skilled and semi-skilled people who have worked on major projects all over Southern Africa,” says Johnson.

Article by: Cape Business News
www.cbn.co.za

Friday, 18 July 2008

South Africa: Poor Residents Again Face Eviction from Poorly Built ...

Hanover Park – In 1994, then president Nelson Mandela promised to build one-million homes. In 2000 the Cape Town Community Housing Company (CTCHC), a private company, was entrusted to help make this promise of Mandela a reality by becoming a housing delivery vehicle for the government. In the process, they build 2,193 houses on a 'rent to buy' basis in 9 communities across the Western Cape.

In order to make the houses affordable to the poor, families were requested to save between R150 – R350 per month over a period of six months before moving into their new homes. They claimed that this amount would be equal to their monthly rental...

However, during the course of the remedial programme, we have established that the NHBRC Forensic Audit and Assessment is flawed and full of shortcuts...(Read Full Article)

Anarkismo.net

Monday, 09 June 2008

Builders on hold due to council's backlog

The National Home Builders' Registration Council (NHBRC), which regulates the home building industry and protects the interests of housing consumers, has a backlog of housing unit enrolment applications due to a recent strike by the council's staff and Eskom's load shedding. This has put cash flow pressure on some construction companies.

Some builders claimed the delay by the NHBRC in issuing certificates affected their cash flow as banks refused to release any loan funds for housing units until presented with an NHBRC certificate.

The delay in conducting inspections was also a problem as it meant the next phase in building could not commence.

Phetola Makgathe, the NHBRC's chief executive, confirmed on Friday that the organisation had a backlog in enrolment data it had to capture but was unable to quantify it or say how long it would take to eradicate.

However, Makgathe said it outsourced inspections and inspectors were not on strike.

Makgathe said the NHBRC did a quality assurance audit on the inspectorate and this had not taken place during the strike, but the backlog in inspections was small.
Click here!


He confirmed the generation of new enrolment certificates was affected by the strike and recent load shedding, and was of concern. But he said the strike did not affect all nine provinces and the NHBRC had acquired its own generator to deal with load shedding.

The NHBRC had written to banks to request them to relax their requirements on enrolment certificates to allow construction to commence.

Makgathe said the NHBRC was dealing with the backlog but he was unsure how much progress had been made.

He said the strike by members of the National Education, Health and Allied Workers' Union (Nehawu) members at the NHBRC had lasted for about a week and had ended on May 26.

Makgathe said Nehawu members were striking about a performance bonus grading system. The union had given in and the offer by the NHBRC stood.

By Roy Cokayne
www.busrep.co.za

Friday, 30 May 2008

NHBRC Strike.

The Facilitators have been informed that Gauteng (Bryanston and Tshwane) has gone on strike again.

We can confirm that Witbank, P.E. and Cape Town did work today, but we have not been able to confirm with the other regions.

As always, we will keep you informed of this unfortunate situation.

Tuesday, 27 May 2008

NHBRC Strike is over.

The Facilitators have been informed that the strike is over and that staff has returned to work.

We have been advised that the NHBRC have put procedures in place to deal with the back log as a matter of urgency. We will keep you up to date with any further developments.

Thursday, 22 May 2008

NHBRC Strike

The NHBRC has been on strike since the 14th of may over a pay dispute. This means that they are unable to process any submissions.

We advise that you contact us in advance and as soon as possible for any new submissions so we can prepare the documentation as we are expecting delays due to the back log of Enrolment and Registration applications.

We will keep you informed on any further developments as we receive further information. We apologise for the inconvenience, rest assured we will be following up regularly and will inform you of any further developments.

Saturday, 17 May 2008

PE Councillor for Housing clarifies media report

"The only concern raised at the meeting was around the National Home Builders Registration Council (NHBRC) certification, and I took it upon myself to ...

BuaNews Online (press release) - Cape Town,South Africa

Wednesday, 14 May 2008

NHBRC is on Strike.

We've been informed that the NHBRC have gone on a country wide strike. We have not yet been informed on the length of the strike.

We will keep you informed on any further developments as we receive further information. We apologise for the inconvenience, rest assured we will be following up regularly and will inform you of any further developments.

Friday, 15 February 2008

Cape manufacturer produces ecofriendly bricks

Concrete brick manufacturer Cape Brick manufactures an eco-friendly product as part of the company's long-term commitment to manufacturing a sustainable environment-friendly product, says Cape Brick sales director Jean Tresfon.

He says that Cape Brick is the only local manufacturer of truly environment-friendly bricks.

"Our recycled bricks are engineering grade, load-bearing, and structural concrete masonry units, that have been approved by the CMA. They hold the lowest embodied energy content of all the bricks manufactured in South Africa," states Tresfon...

..."We were confident that the tests would prove satisfactory, as the SABS conducted a thermal test on our behalf in 2001. However, the NHBRC was concerned that units could vary over time, or that units from different companies might not have the same properties. This is why they have stipulated that each manufacturer must submit its own product for testing," states Cairns.(Read More...)

Laura Tyrer
www.engineeringnews.co.za

Thursday, 14 February 2008

Country Aims to Clear Slums by 2014

Housing delivery will continue to be fast tracked with the objective of accommodating all those seeking homes in formally planned settlements by 2014, says Health Minister Manto Tshabalala.

Speaking at the Social cluster briefing in Cape Town Thursday, the minister said the Department of Housing's focus in the coming financial year will be its programme of slum eradication...

...The National Homebuilders Registration Council (NHBRC) will continue to adhere the minimum standards set by government and will have the authority to stop any contractor who does confirm. (Read More...)

BuaNews (Tshwane)
Vivian Warby
Cape Town

Monday, 11 February 2008

It now costs less to build than buy

Residential building activity has slowed significantly on the back of higher interest rates and a softer housing market, placing would-be homebuilders in a good position to negotiate tender prices with contractors.

FNB property strategist John Loos says residential developers are facing tough times as demand for new housing as well as alterations and additions continue to slow. Building plans passed for residential alterations and additions have already dropped by 3% in the three months to November 2007 (y-o-y). Loos expects residential building completions to be 5% to 10% lower in 2008 than last year.

Increased competition among developers and building contractors for new business is already placing pressure on profit margins. FNB's Residential Building Cost index - based on tender prices - shows that building cost inflation slowed to 4,7% in fourth quarter 2007. That is sharply down from a peak of close to 39% in third quarter 2006. Loos says it now costs R5 264/sq m to build the average, middle-sized house (excluding affordable and so-called RDP houses).

He expects pricing power to continue to suffer over the next six months. Although that is bad news for developers, it does of course create opportunity for consumers to negotiate more competitive prices with contractors. In fact, latest data from Absa Bank show that it already costs less to build a new house than to buy an existing one. (Read More...)

www.property24.com

Wednesday, 23 January 2008

Eastern Cape Works to Fast-Track Rural Housing

Strategies to fast-track rural housing delivery in the Eastern Cape will be the main focus of a Rural Housing Summit to be held this week.

Department of Housing and Local Government spokesperson Phumlani Mdolomba said the two-day summit, which kicks off on Thursday, will focus on rapid land release, land for asset ownership and the renewal of the rural residential property market.

It will also focus on alternative technologies and indigenous knowledge systems in material supply and construction methods to speed up delivery.

"The deliberations and outcomes are expected to feed into and enhance the draft provincial strategic framework for creating sustainable human settlements from this year [2008] to 2014 which is currently under broad consultation in the province," said Mr Mdolomba.

In November last year, Housing Minister Lindiwe Sisulu had tasked the National Home Builders Regulation Council (NHBRC) to conduct an audit of a major Eastern Cape housing project in a bid to prevent poor workmanship.

The move followed complaints raised by residents to the minister during a Presidential imbizo two months before.

As promised during the event, Ms Sisulu had returned to Ugie with Power Construction, the company responsible for building homes in the town. (Read More...)

AllAfrica.com

Monday, 21 January 2008

EC Housing MEC announces low-cost housing plan

She urged all building material suppliers to register with the provincial government in terms of the National Home Builders Registration Council (NHBRC) in a bid �to pull all stakeholders together� to achieve her goal of �getting housing in the Eastern Cape back on track�.

This would mean that every part in the supply chain � material suppliers, contractors and sub contractors � would now be regulated in terms of the NHBRC. (Read More...)

Dispatch Online - South Africa