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The Botshabelo Housing Accord aims at quality housing for all in convenient locations. The strategic plan includes stabilization, subsidies, and support for communities. Rectification targets pre-2002 non-enrolled homes, PHP projects, and rural housing. The total estimated remedial costs amount to R.58.7 billion. The project ensures quality standards adherence, limited workmanship issues, and NHBRC-provided warranties. NHBRC's capacity includes a Customer Centric Strategy and trained technical staff. Pilot projects in KZN and EC involve assessment, demolition, and rebuilding. Job creation is a key outcome of the rectification program.
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Strategic Corporate Plan 2011/12 Mr. Sipho Mashinini CEO - NHBRC Siphom@nhbrc.org.za 16 March 2011
Botshabelo Housing Accord The Land mark Botshabelo Housing Accord stated that: Government strives for the establishment of viable, socially and economically integrated communities which are situated in areas allowing convenient access to economic opportunities, health, educational and social amenities and within which South Africa’s people will have access on a progressive basis to: • A permanent residential structure with secure tenure, ensuring privacy and providing adequate protection against the elements. • The Strategy set out definite actions: • Stabilizing housing environment • Establishing a subsidy scheme to provide housing opportunities for millions • Providing housing support to communities
National Rectification Project • Pre-2002 non-enrolment of homes in accordance with the Act. • PHP projects and homes were not enrolled. • Rural housing not enrolled. • “RDP houses” were not build in accordance to SABS building standards and technical requirements stipulated by the NHBRC. • No homes were inspected. • NDHS statistics data indicates that 3,047,600 houses were built between 1994 and 2010, (2,807,595+ 240,000). • Total units enrolled by NHBRC from 2002 to 2010 is 409,100. • Number of units at high risk is 2,638,500.
Impact on houses • Desktop study shows that 40% of houses under risk will have workmanship related problems at a cost of R12 000 per house. • Estimated cost of rectifying minor defects will be 1,055,400 X 12 000 = R 12,7 billion. • Approximately 20% of houses at risk will have major structural defects which is 609 520 units. • To demolish and rebuild the units at current subsidy quantum of R 87 000 will be R 46 billion. • Total estimated remedial costs is therefore R 58.7 billion.
Enrolment Fee • All houses rectified and meeting NHBRC requirements will be enrolled and provided with 5 year major structural warranty. • All future defects occurring within the warranty period will be covered by the NHBRC. • Enrolment fee will be calculated as for the other subsidy projects as 1.75% of the subsidy quantum, which is currently R87k. • It is expected that 60% of the houses will be rectified. • The total amount of units to be rectified is 1,583,100. • The total estimated enrolment fee is 1.75% X R 87000 X 1,583,100 = R 2.4 billion.
Professional Fees • The professional fees for the services will be R1,500 per house per unit. • Total estimated professional fees is as follows: (0.6 X 2,638,500) X R1,500 = R 2.4 billion (0.4 X2.638,500) XR850 = R 0.9 billion Total estimated Professional Fees = R 3.3 billion Summary of Costs will be: Estimated remedial costs = R 58.7 billion Estimated Enrolment Fees = R 2.4 billion Estimated Professional Fees = R 3.3 billion Total Estimated Costs = R 64.4 billion
Value for Money for Department • Assurance that each and every home is of quality standards that meets the National Building Regulations. • Very limited come-backs related to workmanship and structural integrity. • All houses assessed and rectified NHBRC technical requirements and qualify for a 5 year structural warranty cover provided by NHBRC. • During rectification process, contractors and sub-contractors will be trained by NHBRC. • NHBRC will develop a central registry of all houses that have been assessed and rectified.
Capacity of NHBRC • NHBRC has adopted a Customer Centric Strategy. • Technical staff have been placed in all the NHBRC provincial offices which include geotechnical, structural engineers, quantity surveyors and project managers. • The provincial offices will be supported by a team of experts from Central Office. • We are short listing specialist contractors to do the work on behalf of the NHBRC. • There will be no rectification of the completed rectified homes.
Pilot Projects in KZN • Initial focus of the rectification project is in KZN ; • Preliminary results is based on assessment made recently in KZN; • Number of units to be assessed is 160,000 (preliminary); • Number of Units assessed more than 27,000; • About 80% of the units are to be demolished. It is more expensive to rectify a 16m2 to 30m2 house!
Pilot Project in EC • A total of 178 848 (preliminary) units are subjected to Forensic Investigation by NHBRC in Eastern Cape Province. • NHBRC pilot investigated a total of 36,000 units. • Study indicates that 63% of units require to be rebuilt at R 87 000 quantum,(112 674 X R87 000 = R 9,802,658,880). • 37% of units can be rectified at average cost of R 30,000 (66,173 X R30,000 = R 1,985,190,000). • A total of R 11,787,848,880 (preliminary figure).
Jobs Created • 100 Jobs have been created for assessment through the rectification programme. • Most of the jobs are for Technical Consultants. • More than 1000 jobs will be created during Construction of the rectification programme. • The jobs will be for both skilled and unskilled labourers. • NHBRC has created 77 jobs of Technical Scarce skills.
Surface bed with no foundation Cracks above windows with no lintels Roof anchorage done by home owners Blocks laid with mud
NHBRC Contribution to homes constructed - Pre 2010 • All sub-standard houses will be demolished and re-built; • NHBRC will enrol these houses; • The NHBRC has referred the Engineers to Engineering Council of South Africa for possible disciplinary action; • NHBRC Council is taking disciplinary action against builders , and • The rectification phase will be project managed by the NHBRC. • Final budget and Rectification programme 2 B finalised in Consultation with NDHS pending availability of financial resources.
NHBRC Value Proposition – Post 2010 • All houses will be inspected by NHBRC . • All houses enrolled with NHBRC will enjoy the following benefits: • 3 Months Workmanship Cover • 1 Year Roof Leak Cover • 5 Year Major Structural Warranty Cover • Future remedial costs, if any, will be covered by NHBRC warranty. • NHBRC will continue to provide more training to emerging home builders. The quality of construction is not yet at the desirable level. • NHBRC will be more involved in housing consumer education, focusing on:- - implications of alterations & additions. - importance of proper maintenance of houses. - benefits of the warranty scheme. • NHBRC will pay more attention to infrastructural services during project construction.
NHBRC Post 2010 (Cont…) • NHBRC will conduct “at risk” inspections of late enrolled houses. • NHBRC will continue to cross-subsidise the subsidy sector enrolment fees in order to contribute to the sustainability of human settlements and assist in service delivery. • NHBRC will implement a new enrolment process, whereby the project enrolment and home enrolment phases are collapsed into a single phase (reduction in turnaround times). • NHBRC will assist the province in geotechnical investigations. • NHBRC will enroll all houses including rural houses and PHP. • NHBRC has established a Forensic Investigation Business Unit. • Focus will be on prosecuting all defaulting Home Builders not complying with the provisions of the Act. • Enforcement of the NHBRC code of ethics.
NHBRC Post 2010 – The Future! • Contribute to reduction of housing backlog through the promotion of innovative and/or alternative building methods. Improving quality of living A home that is suitable to the needs of the majority of the people of RSA.
NHBRC Post 2010 Training of Youth ,Men& Women
INSPECTIONS In terms of the Housing Consumers Protection Measures Act, 1998 (Act No. 95 of 1998), section 5(4)(b), the Council shall: “enrol and inspect the categories of homes that may be prescribed by the Minister”
Inspection Critical Success Factors • provision of statistical data to guide pro-active decisions on risk aspects. • provision of industry feedback, and • reduction in the cost of inspection through an optimised inspection process. Inspection of all homes which are enrolled. education and training of home builders. acceptable level of technical competency of all home builders. reduction in claims against the warranty fund (risk management). maintaining a high profile of NHBRC visibility.
NHBRC Inspection Model Post 2010 • Utilisation of a hybrid model (Outsourcing and in-sourcing for smaller Provinces) • Hybrid model resulted in reduction in inspection fee from R 2,500 to R 1700 per home. • Implementation of an on-site inspection monitoring system through use of PDA’s (Personal Digital Assistant).
Inspection Cost per Unit • VFP’s VFP’s
Development contribution to subsidy sector • VFP’s VFP’s
Revenue Assumptions Non-Subsidy Subsidy
Valuable Final ProductsTrend and Value • VFP’s VFP’s
NHBRC will continue to assist all spheres of Government in the delivery of sustainable human settlements. Thank You.