NHBRC
 Established 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
NHBRC
Renewal or
Voluntary
withdrawals
Training of
Home Builders
Regulatory
Framework
HOME BUILDER
HOUSING CONSUMER
Technical &
Ethical
Standards
Disciplinary
(Suspensions &
Deregistrations
Defaults by
Home Builders
NHBRC REGISTRATION
 Section (10)(2) of the HCPM Act states
that “no homebuilder shall construct a
home unless that homebuilder is a
registered homebuilder.
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 SYSTEM
 provide 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 therefore
categorized as “Ungraded (U)”.
All Home Builders falling under this category are not subject to
any performance criteria.
NHBRC TRAINING
 After 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
Module
Duration
NQF Level
Construction
Management
12 days
3
Project
Management
5 Days
3
Finance for NonFinancial 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 PROCESS
 SUBSIDY SCHEME STRUCTURE
 Project Linked Subsidy
 Consolidation Subsidy
 Developer Driven Individual Subsidy
 Relocation Assistance Subsidy Scheme
 Individual Subsidy Scheme
 In-situ upgrade
 Institutional Subsidy Projects
 People 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 PROCESS
Stage 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 TOOLS
 Geotechnical assessments
 Structural assessments
 Construction management assessments
 Full-time on-site inspectors
 Registration of HBs & Developers
 Home Building Manual
 Competent persons
WHO WOULD DO THE INSPECTIONS
 All 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 PHASE
The 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 problems
 Evaluation of proposed foundation solutions
 Evaluation 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)
QUESTIONS ????