NHBRCEstablished in terms of the Housing Consumer

Protection Measures Act (Act 95 of 1998)

The NHBRC is mainly established to protect the interest of housing consumers, and to regulate the home building industry.

The NHBRC has a mandate to assist Emerging Home Builders through training and inspection, to achieve and to maintain satisfactory technical standards of home building.

NHBRC – REGULATION OF H/B INDUSTRY

Registration &Grading

Training ofHome Builders

Technical &Ethical

Standards

Defaults byHome Builders

Disciplinary(Suspensions &Deregistrations

Renewal orVoluntary

withdrawals

RegulatoryFramework

HOME BUILDER HOUSING CONSUMER

NHBRC

NHBRC REGISTRATION

Section (10)(2) of the HCPM Act states that “no homebuilder shall construct a home unless that homebuilder is a registered homebuilder.

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REGISTRATION PROCESS

1. A prospective home builder must demonstrate the following:

a) Financial capacity

b) Technical capacity – (includes technical test)

c) Management capacity

2. Payment to NHBRC:

a) R750- admin fee (once-off) non-refundable

b) R600- Registration fee non-refundable

c) R100-Home Builder Manual

3. Renewal fee

a) R600-annually

Registration Continued

Registration at following offices:

Durban Main Office – 0313748103 (M Makoka)

Newcastle Satelite Office – 0343123507 (P Khumalo)

Port Shepstone Satelite Office – 0393150488 (L Mbuli)

HCPMA Sec 5(4)(h)

•“The Council shall establish grading categories and criteria in respect of

home builders with a view to encourage good building practice and discourage

bad building practice.”

GRADING SYSTEM

• PERFORMANCE DRIVEN

• QUALITY OF HOUSES – BQIH

• DIFFERENTIATION OF ENROLMENT FEES

KEY RESULTS OF GRADING SYSTEMprovide a reliable means for consumers to

choose home builders with a clear track record of meeting their obligations under the Council Rules and the terms of the Standard Home Builders Warranty promptly, effectively and efficiently,

assist Council to reduce the risk of rectification cost against major structural damage to the Fund and by so doing improve the construction quality of new homes built,

encourage home builders to reduce the number of complaints and conciliations that Council is obliged to undertake, and

discourage the phenomenon of late enrolments.

Measurement System

5 Grading Categories, viz. A, B, C, D & U

“U Grade” is reserved for all registered home builders who have been with the Council for a period less than 24 months.

These builders are still new to the industry and are thereforecategorized as “Ungraded (U)”.

All Home Builders falling under this category are not subject to any performance criteria.

NHBRC TRAININGAfter registering as a member of NHBRC, the

emerging contractor automatically qualifies to receive NHBRC Sponsored training “Free of Charge”.

The Contractor has to apply through the training department at all provincial offices of NHBRC and at the Central Office.

NHBRC has a list of service providers who are contracted to provide various trainings in all 9 provinces of South Africa.

Training and Skills Development

ModuleModule DurationDuration NQF LevelNQF LevelConstruction Management

12 days 3

Project Management

5 Days 3

Finance for Non-Financial Managers

3 Days 3

Bricklaying 19 Days 3

Plastering 11 Days 3

Roofing 27 Days 3

Plumbing 14 Days 3

Painting 20 Days 3

THE BENEFITS OF TRAINING TO THE HOMEBUILDER

• Improved qualification/career opportunities.

• Quality workmanship.

• Professional profile/image.

• CETA certification.

• Good NHBRC grading.

• Marketing opportunity.

• Tendering Skill.

• Business Skill.

NHBRC SUBSIDY PROCESSSUBSIDY SCHEME STRUCTURE Project Linked SubsidyConsolidation Subsidy Developer Driven Individual SubsidyRelocation Assistance Subsidy SchemeIndividual Subsidy SchemeIn-situ upgradeInstitutional Subsidy ProjectsPeople Housing Process (PHP)Rural Housing Scheme (under

discussion )

WHO PAYS ENROLMENT FEE The DoHS shall pay the enrolment

fee of 1,75% in total.1 % paid at Project Enrolment Stage

on total number of projected housing.

0,75 % paid at Home Enrolment Stage on number of houses to be constructed.

ENROLMENT PROCESSStage 1: Project Enrolment Stage

( Official Letter + Certificate)

Stage 2: Home Enrolment Stage ( Official letter of units enrolled)

Stage 3: Final Unit Report stage ( Certificate issued for each

unit accepted)

RISK MANAGEMENT TOOLSGeotechnical assessmentsStructural assessmentsConstruction management

assessmentsFull-time on-site inspectorsRegistration of HBs & DevelopersHome Building ManualCompetent persons

WHO WOULD DO THE INSPECTIONSAll inspections are to be done by in

house inspectors reporting to the Provincial Manager .

Approximately 1 inspector per 500 houses.

Inspectors are employed on fixed contract periods.

Site information relayed to Project Manager on bi-weekly basis.

WARRANTY PHASEThe Home Builder shall: a) Rectify non-compliances with, or

deviation ,from the contract with a Beneficiary, or any deficiency.b) Rectify any Major Structural Defect in the Home caused by the non-compliance with NHBRC’s technical requirements.c) Repair roof leaks attributable to workmanship, design or materials.

VALUE FOR MONEY Evaluation of geotechnical problemsEvaluation of proposed foundation solutionsEvaluation of topographical problems &

proposed solutions (stormwater control, retaining embarkments, etc)

Evaluation of the capacities & capabilities of home builders

Establishment of appropriate levels of technical specifications & construction guidelines

DIFFERENCE BETWEEN NHBRC & CIDB

NHBRC CIDB

Home building industry Public sector (civil, mechanical, electrical, etc)

Registration – works and financial capability – technical test

Registration – works and financial capability - no technical test

Registration fee – R 1450 (750+600+100)

Registration fee – R250 to R750 depending on grade

Annual Fee - R600 Annual fee – R200 to R40 000 depending on grade

Grading system – performance driven (A to D , U)

Grading system – financial and works capability (1 to 9)

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QUESTIONS ????