1. 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.

2. NHBRC – REGULATION OF H/B INDUSTRY

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

4. 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

5. 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)

6. 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.”

7. GRADING SYSTEM PERFORMANCE DRIVEN QUALITY OF HOUSES – BQIH DIFFERENTIATION OF ENROLMENT FEE S

8. 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.

9. 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.

10. 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.

11. Training and Skills Development ModuleDuration NQF Level Construction Management 12 days3 Project Management 5 Days3 Finance for Non- Financial Managers 3 Days3 Bricklaying19 Days3 Plastering11 Days3 Roofing27 Days3 Plumbing14 Days3 Painting20 Days3

12. 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.

13. 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 )

14. 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.

15. 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)

16. RISK MANAGEMENT TOOLS Geotechnical assessments Structural assessments Construction management assessments Full-time on-site inspectors Registration of HBs & Developers Home Building Manual Competent persons

17. 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.

18. 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.

19. 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

20. DIFFERENCE BETWEEN NHBRC & CIDB NHBRCCIDB Home building industryPublic 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 - R600Annual 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)

22. QUESTIONS ????