NATIONAL RECTIFICATION PROGRAMME NATIONAL RECTIFICATION PROGRAMME

SELECT COMMITTEE ON APPROPRIATIONSSELECT COMMITTEE ON APPROPRIATIONS

11 SEPTEMBER 201211 SEPTEMBER 2012

Presentation OutlinePresentation Outline

• Background• Rectification Defined• Objectives of the Project• Implementation Framework• National Coordinator• Financial Implications• Funding Arrangement• 2012/13 Provincial Budgetary Allocations• Conclusion

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BackgroundBackground

• The National Rectification Programme aims to correct defects on subsidy houses resulting generally from poor workmanship on subsidy houses that do not meet technical requirements as specified by South African National Standards (SANS) 10400 and NHBRC, as may have been applicable at the time of construction

• Structural defects observed on a substantial number of subsidised low cost houses built between 1994 and 2010 has necessitated the NDoHS to embark on the rectification programme.

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Background (Cont…)Background (Cont…)

• These defects are a result of a number of factors including but not limited to the following:

Poor workmanship Use of inferior and inappropriate material Deviation from specification Poor project management Lack of supervision Unscrupulous contractor

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Rectification DefinedRectification Defined

• It refers to the process of correcting structural and other defects on low-cost houses which may be resulting generally from poor workmanship that do not meet the technical requirements specified by the NHBRC and SANS

• The process of rectification is preceded by a thorough engineering assessment of the structural condition of each unit to determine the nature and extent of the defects and the rectification required. Based on rectification technical specification, an estimation of cost per house is then determined

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Objectives of the ProjectObjectives of the Project

• Identify the full extent of the scope and estimated cost of defective houses

• Implement a process of successful rectification of all defective houses

• Professional execution of the project within time budget and according to specification

• Proper liaison between all stakeholders to ensure long-term positive outcomes in affected communities

• Consideration of environmental and social impacts• Establish a proper and effective reporting system

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Implementation FrameworkImplementation Framework

• Managed at two distinct levels which entail the following main activities:

National level (PMU)Conceptualize and plan the implementationObtain support from provincial and local

governmentApprove implementation programmeStandardize tender documentation

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Implementation Framework (Cont…)Implementation Framework (Cont…)

Align approach Coordinate Consolidate reporting

• Provincial/Regional level Issue instructions

Construction supervision and quality control Certify payment Monitor and report performance

National CoordinatorNational Coordinator

• A professional service provider will be appointed to support the PMU to coordinate and align the implementation programme. The following are the functions of the service provider:

Evaluate/ verify the findings from the NHBRC Conceptualize and plan programme and obtain

approvals Compile standardized tender documentation

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National Coordinator (Cont..)National Coordinator (Cont..)

Engineers cost estimates Facilitate the tender, evaluation and appointment of

building contractors per province Obtain, evaluate and approval of delivery

programmes and cashflows Facilitate the tender, evaluation and appointment of

local service providers for site supervision, quality control, safety aspects etc

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Financial ImplicationsFinancial Implications

• Category 1: Non Structural Defects: Moderate Rectification Work

• Category 2: Minor Structural Defects: Extensive Rectification Work

• Category 3: Major Structural Defects: Demolish And Rebuild

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Summary of Category of defects & Summary of Category of defects & rectification cost estimaterectification cost estimate

Category of Defects and Rectification Cost Estimate

Category DescriptionCost Estimate

Category 1 Moderate rectification R 19,523.74

Category 2 Extensive rectification R 38,673.00

Category 3 Demolish and rebuild to new standard of 40m2 R 85,468.88

Extra over Cost of temporary accommodation R 25,000.00

Extra overCost of Civil Engineering Infrastructure per Stand-

where applicableR 45,000.00

AssessmentsNew assessments for houses that have not been

assessedR 1,200.00

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Financial Implications (Cont...)Financial Implications (Cont...)

• The cost estimates (category 1&2) are the average cost estimates based on the defects observed on poorly constructed low-cost housing

• The estimate includes the professional fees• The extra over cost for temporary accommodation is

provided for in order to temporary accommodate the people construction work is being carried out on their units

• The provision for civil engineering infrastructures is assumed and will be verified during the assessment review

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Funding ArrangementFunding Arrangement

• Funded from an amount of up to 10% of the budgetary

allocation of the Provincial HSDG

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2012/13 PROVINCIAL BUDGET 2012/13 PROVINCIAL BUDGET ALLOCATIONALLOCATION

PROVINCE UNITS BUDGET % ALLOCATION

EC 5,700 415,983 18.14

FS 1,076 41,425 4.31

GP 20,004 34,570 0.86

KZN 3,249 274,590 9

LIM 881 60,684 4

MP 120 3,960 0.41

NC 180 11,500 3.39

MW 1,285 52,683 5

WC 1,734 34,355 2

Total 34,229 929,750 47,07

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CONCLUSIONCONCLUSION

• Rectification is a

Very critical and sensitive programme but Should not be the mainstream activity in the

Business Plan

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THANK YOUTHANK YOU