MINISTRY OF HUMAN SETTLEMENTS
REPUBLIC OF SOUTH AFRICA
NATIONAL COUNCIL OF PROVINCES (NCOP)
QUESTION FOR WRITTEN REPLY
QUESTION NO.: 173
DATE OF PUBLICATION: 17 OCTOBER 2014
Ms T G Mpambo-Sibhukwana (DA-WC) to ask the Minister of Human Settlements:
(1) (a) What minimum qualitative standards, skills and/or experience does
her department require when selecting contractors for the construction
of Reconstruction and Development Programme houses and (b) what
recourse does her department have against contractors which deliver
sub-standard housing;
(2) whether her department has taken any actions against contractors
which delivered sub-standard housing in the past three financial
years; if not, why not; if so, (a) what actions and (b) what are the
further relevant details?
CW231E
REPLY
(1) (a) To begin with Honourable member, it is worth noting that the
Reconstruction and Development Programme (RDP) houses were
discontinued as soon Cabinet adopted the Comprehensive Plan for the
Development of Sustainable Human Settlements in 2004 setting new
standards for housing typologies for government houses referred to as
BNG houses.
The National Department of Human Settlements does not appoint building
contractors. The implementation of the various National Housing
Programmes is undertaken by the nine Provincial Governments and
certain Municipalities which are responsible for the project
procurement processes, compliance assessment and ultimately the
appointment of successful building contractors to undertake the
specified construction work.
Building contractors that wish to participate in the construction of
home building projects must be registered with the National Home
Builders Registration Council (NHBRC) and all the houses that will be
constructed, must be enrolled under the NHBRC five-year warranty
scheme. The NHBRC will undertake a competency assessment of the
contractors who apply for registration and will evaluate and require
minimum building construction competencies and skills before
registration is awarded. In addition, the NHBRC will enforce minimum
standards, compliance assurance with its Building Manual prescripts
and the National Building Regulations and will undertake quality
control during the construction phases of the houses.
(b) Due to the problems being experienced with contractors delivering
shoddy workmanship and/or fail to comply with their contractual
obligations, MINMEC approved a Strategy for Action against Defaulting
Contractors of Government Subsidised Housing Projects in 2012 to
confirm action required to be taken against these building contractors
involved in housing projects.
A contractor may only be appointed to implement a subsidised housing
project if the contractor is registered with the National Home
Builders Registration Council (NHBRC). It is the responsibility of
the provinces and/or the municipalities acting as developers for the
projects to report all defaulting contractors to the NHBRC when non-
compliance is detected. Contractors who default on contractual
obligations, who deliver work of poor quality and who do not adhere to
the NHBRC norms and standards and National Building Regulations will
be subject to the provisions of Section 11 of the Housing Consumer
Protection Measures Act, 1998 and be disciplined according to the
findings. If the contractors have not met the terms and conditions of
their contracts, these defaulting contractors can be deregistered in
terms of Section 11 of the Housing Consumer Protection Measures Act
and will be prevented from registering a new company with the NHBRC.
The relevant provinces and/or the municipalities that entered into a
contract with the contractor for a project must follow due process of
law to recover any cost and financial loss incurred due to the non-
compliance of the contractor once the contract agreement is
terminated.
(2) No. Although the Minister of Human Settlements has introduced
Ministerial National Norms and Standards over and above the National
Building Regulations, neither the Minister nor the Department of Human
Settlements are in a position to directly enforce and/or supervise
compliance with these measures. In addition, the Minister and the
Department of Human Settlements are not in a position to intervene
directly in contractual matters between developers and contractors.
The provinces and municipalities acting as developers that awarded a
subsidised housing project to a contractor are obliged to follow the
prescribed tender process and ensure quality control in monitoring
progress of the project in terms of milestones and payment draw downs
as indicated in the contract entered into with the contractor.
The Department has requested the NHBRC to provide information
regarding steps taken in terms of Section 11 of the Housing Consumer
Protection Measures Act, 1998 against defaulting contractors. This
information will be provided to the honourable member once it is
received.
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