THE economic slow-down has hit the construction industry hard with the National Home Builders’ Registration Council (NHBRC) inspectorate temporarily unable to pay its employees, insiders say.
The problem, from which the outsourced inspectorate has now recovered – it is not directly linked to the NHBRC – stemmed from financial problems at its Gauteng head office, senior inspectorate sources say.
The inspectorate is tasked with sending housing inspectors to check on new developments and to sign them off, allowing the homes to be transferred to the owners’ names. A 1.3% levy on new residential developments goes directly to a NHBRC fund, in accordance with the Housing Consumer Protection Measures Act, created to protect home-owners against poor workmanship.
Ten inspectors are employed by the organisation in the Eastern Cape, with five based in Nelson Mandela Bay. All have their own businesses and are employed on an ad-hoc basis.
Since the inspectorate is paid for every home it checks, a late payment by the government, one of its biggest clients, delayed a monthly payment from its Johannesburg head office, sources said.
“It has been resolved now,” said a senior Eastern Cape inspectorate official, who spoke on condition of anonymity.
But the inspectorate is now considering downsizing.
“There is simply no work,” said the official. “It leaves the inspectorate no choice but to cut back.”
Meanwhile, the Master Builders’ Association (MBA), which comprises professionals who list with the organisation, has called for the NHBRC to reduce its 1.3% levy which over the past 10 years has seen its fund grow to a massive R2-billion nationally.
Builders have no choice but to pay the levy, but say they have received little in return. When structural defaults are reported by home owners, it is the builder, not the NHBRC, who pay for repairs.
“The MBA has identified numerous problem areas with the NHBRC, many of which are dealt with through direct interaction with the NHBRC at a national level,” said MBA provincial director Greg Steele. “The MBA is also in regular contact with the local NHBRC office to assist members in resolving day to day problems .”
Steele said unnecessary delays were caused by advisers such as estate agents, architects and building consultants who lacked knowledge of the Housing Consumer Protection Measures Act, for which the NHBRC was formed.
Brian Hayward CHIEF REPORTER
Weekend Post
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The Facilitators are the One Stop NHBRC Service Centre for all Developers, Contractors and Home Owners. For more information visit our website at:
www.the-facilitators.com
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