eThekwini Housing
CONSTRUCTION
Kamal Maharaj
(Manager: Housing:Projects)
SCM FRAMEWORK
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Allows opportunities in uplifting
SMME’s in construction of services &
houses
 SMME’s are accommodated in
construction projects through conditions
pertaining to targeted procurement and
black economic empowerment.
SCM FRAMEWORK
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KEY PRIORITIES IN CONDITIONS
– Increased usage of local resources
– Redressing of skewed employment and
ownership patterns through black economic
empowerment
SCM FRAMEWORK
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KEY PRIORITIES
– Creation of Opportunities for job creation and
poverty alleviation (Community participation)
– Stimulation of Skills Development and Transfer
– Fast tracking the Growth and ensuring
sustainability of SMME’s (Small, Medium and
Micro Enterprises)
SCM FRAMEWORK
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KEY PRIORITIES
– Historically Disadvantaged Individual
(HDI):
The definition includes Black, Women, and Disabled
Individuals
– Priority Population Group (PPG):
Black
Individuals who fall into population groups that were not offered a
franchise in the national elections before or after the introduction
of the 1984 tri-cameral parliamentary system and only received a
franchise during 1994.
Occupational Health & Safety Act
Act 85 of 1993
Definitions: (Extracted from the Regulations)
“Construction work” means any work in connection with (a)
the erection, maintenance, alteration, renovation, repair, demolition
or dismantling of or addition to a building or any similar
engineering structure;
(b)
the installation, erection or dismantling of fixed plant where such
work includes the risk of a person falling (from a height)
(c)
the construction, maintenance, demolition or dismantling of any
bridge, dam, canal, road, railway, runway, sewer or water
reticulation system or any similar civil engineering structure; or
(d)
the moving of earth, clearing of land, the making of an excavation,
piling, or any similar type of work.
NB
PROJECT LIFE CYCLE FOR A HOUSING
PROJECT
HOUSING
PROJECT
FEASIBILITY
(CONCEPT)
DESIGN
CIVIL
ENGINEERING
ROADS,
WATER,
SEWER
LAND
TRANSFER
HOUSE
CONSTRUCTION
CLOSE
OUT
TYPES OF PROJECTS
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CONSTRUCTION OF SERVICES
 CONSTRUCTION OF TOPSTRUCCTURE
 CONSTRUCTION METHOD DEPEND ON
TYPE OF PROJECT
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GREENFIELD- vacant land
INSITU-UPGRADE- informal settlements
CONSTRUCTION METHODOLOGY
PRINCIPAL CONTRACTOR- subcontractors,local labour
 MANAGED PHP- Material Supplier,
Construction Manager, local
contractors
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CONTRACTOR METHOD
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BASED ON PRINCIPAL BUILDING AGREEMENT
(JBCC)
CONTRACTOR IS RESPONSIBLE FOR SITE
CONTRACTOR-RESPONSIBLE FOR LABOUR AND
MATERIALS
PROVIDE CONSTRUCTION
GUARANTEE(VARIABLE/10%)
DEPARTMENT WILL REQUEST CONTRACTOR TO
APPOINT SUB-CONTRACTORS (SPECIALIST
WORK)IN TERMS OF TENDER REQUIREMENTS
UNSKILLED LABOUR SOURCED FROM
COMMUNITY.
PHP METHOD
FORMAL & INFORMAL STRUCTURES
WHAT IS PEOPLE’S HOUSING
PROCESS ?
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Process whereby people
build houses themselves
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Support provided by govt. to
beneficiaries participating in
the development of their
own houses
SCHEDULE OF ACTIVITIES

LABOUR DESCRIPTION:
Slabwork
Blockwork
Roofing
Doors
Glazing
Beam filling and bag wash
Painting
Plumbing
WHAT IS ESTABLISHMENT GRANT &
WHAT IS IT USED FOR ?
Additional money to support persons to build their own
homes. This money is paid to the developer on behalf of
beneficiaries.
The establishment grant is use for :
 Accounts Administrator
 Technical Certifier
 Other Professionals (Project Manager, Construction
Supervisor)
 Community Liaison Officer
 Set up Housing Support Centre / Office
 Pay for water, electricity, telephone of office
 Equipment
 Photocopier etc.
WHAT IS A SUPPORT ORGANISATION
AND IT’S ROLE ?
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Must be a legal entity
In terms of policy, is the municipality (developer)
Secure & apply for subsidies
Planning of project and area
Assists with plans and building
Monitor and certify work
Operate specified account as Account Administrator
Provides general advice and training assistance
Supplies material
In partnership with community. Decisions made in consultation with
community
WHAT IS THE ROLE OF THE
COMMUNITY ?
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Partnership with support organization
Participation in house construction
Appoint and manage local contractors
Appoint and manage local labour to build houses
Community Liaison Officer and Housing Advisors
appointed from the community
Determine wage rates
HOW WILL THE PHP PROCESS
WORK?
Different Approaches to PHP. Most commonly used and successful in
KZN is the managed PHP approach as outlined below :

Local labour identified and trained, if local labour is available from
community and if committee is satisfied, this labour can be utilised
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Materials bought on Open Market via tender process
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Materials stored at Support Centre / Site Office with security
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Beneficiaries approved / Applications completed / House Plans chosen
(assisted by Housing Advisors)
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Materials transported to site
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Support organization together with committee will appoint sub contractors and
local labour to build houses
PHP PROCESS CONT.
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Assisted and advised by Construction Supervisor who :
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Checks quality and material control
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Supervises and inspects
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Co-ordinates use of material
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House is checked and certified by Technical Certifier
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Certifier issues certificate to Accounts Administrator
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Accounts Administrator manages and pays monies
Trained people building
houses themselves
Trained people committed to assisting
with the building of their own houses
under supervision
OHS Act
Construction Regulations
Definitions:
NB
Health & Safety Specification: Client documentation
detailing the key activities to ensure H&S
compliance.
Health & Safety Plan: documented plan addressing
the identified hazards and risk and implementation
of control measures.
Health & Safety File: Contractor’s file kept on each
camp site containing the information required by
the Construction Regulations.
OHS Act
Construction Regulations
PHP PROJECT
THE CHALLENGES
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Notification
Safety file
Health and safety specification
Health and safety plan
Approval of the plan
Appointment - 4.1(a)
Mandatory agreement 37.2
Risk assessment
OHS Act
Construction Regulations
CONT.
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Letter of Good standing
Training
Audit
Toolbox talks
Safety meetings
IOD management
Incident reporting & investigation
OHS Act
Construction Regulations
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Fulltime safety officer on PHP projects
Full compliance with OHS Act & Construction regulations
Feed back monthly report
Audit to be conducted on PHP projects
OHS Unit to be involved from the start of all projects
Client safety (consulted) to be involved on PHP projects
WHAT GOES INTO A BUSINESS PLAN
FOR THE ESTABLISHMENT GRANT ?

Business Plan is an application for additional funding :
establishment grant funding for the PHP process
 Project Description
 Management structure : Roles and responsibilities of
stakeholders
 Aims, objectives & methodology : level of service and
house design
 Support functions
 Budget and cash flow for use of grant
 Flow chart outlining the PHP process
 Monitoring, dispute resolution etc.
CONSTRUCTION OF HOUSES

SITE ESTABLISHMENT
 CONSTRUCTION OF HOUSES
 HANDOVER ON A PROGRESSIVE BASIS TO
MUNICIPALITY & BENEFICIARY
 OCCUPATION OF HOUSES ON A PROGRESSIVE
BASIS
 DoHS INSPECTION ON A PROGRESSIVE BASIS
 PAYMENT MADE ON PROGRESSIVE BASIS IN
TERMS OF THE CONTRACT