The NHBRC – 5 elements
1. The NHBRC gives protection against shoddy workmanship
The NHBRC was established in terms of the Housing Consumers Protection Measures Act, 1998 to regulate the building industry and protect home buyers against shoddy workmanship.
Motivation at the time was largely charged by fly-by-night-builders who were conning people all over the country. There was undoubtedly a huge need to regulate the home building industry and improve building standards in this part of the construction industry.
The National Home Builders Registration Council (The NHBRC) – which is a Section 21, non-profit organisation – states that it has the vision to be “a world-class organisation that ensures home builders deliver sustainable quality homes”. The way it set out to do this, was to establish a registration process for all home builders and contractors working in the domestic market, together with an NHBRC Defects Warranty Scheme for all new homes built by their registered members.
2. Registration with the NHBRC
Since December 1999, all home builders have been required, by law, to register with the NHBRC, and no financial institution is permitted to lend money against the security of a mortgage bond unless the builder is registered. As a further safeguard, conveyancers are not permitted to register bonds unless these requirements have been met.
However, to register with the Council, builders must have not only the appropriate technical and construction skills, but also sufficient financial resources and management abilities to carry on a business without exposing “housing consumers” to unacceptable risks.
The NHBRC has a register of home builders who are members and they are in the process of establishing a grading system so that potential clients will get an idea of the quality of work to expect. Members will be able to use this information when they advertise their services.
In addition, the NHBRC keeps a database of any previous members who have been suspended or deregistered.
3. NHBRC Warranty Scheme
The primary concern of the NHBRC is “major structural defects” caused by poor workmanship. The warranty scheme was established to counter this problem, and because of it, the NHBRC is able to provide warranty protection against defects for all new homes: five years for the structure itself (foundations and walls), and a minimum of a year for roof leaks. Noncompliance and deviation from plans and specifications are also covered.
However, funding of the warranty scheme has historically been the most controversial issue relating to this organisation. Apart from the registration fees and annual levies, “enrolment” fees are charged for every building that is constructed. From the start fees were based on 1,3 percent of the price in the deed of sale or offer to purchase document, or the sum of the prices on the building contract and land sale agreement up to R500 000; thereafter a percentage scale is used.
4. NHBRC Manuals
One of the most valuable contributions the NHBRC has made is the publication of comprehensive home building manuals (which was a requirement of the founding Act). These are available directly from them at a very reasonable price.
Simple reference documents based on normal construction procedures and recommended practices, the manuals cover every aspect of building, including planning, design and construction. They contain numerous tables, definitions, diagrams and specifications, all of which encourage good building practice. Even though drainage installations and other belowground work is excluded from the NHBRC’s warranty scheme, relevant construction methods have been included in the manuals as a guide. Interestingly, some non-standardised construction methods not covered by the National Building Regulations are also included in the NHBRC manuals.
Comprehensive as they are, the NHBRC building manuals are not intended to replace existing building regulations and/or codes of practice determined by the South African Bureau of Standards (SABS). The National Building Regulations and Building Standards Act remains in force and must be adhered to.
5. The NHBRC and Owner Builders
While the Housing Consumers Protection Measures Act was promulgated to protect consumers, unscrupulous builders found a loophole in the Act. By claiming to be “owner builders”, they were able to get away with certain construction projects without registering with the NHBRC and paying the necessary fees.
In 2007 the Act was amended, defining an Owner Builder as”
“a) a person who builds a home for occupation by himself or herself; or
b) a person who is not a registered home builder and who assists a person contemplated in paragraph (a) in the building of his or her own home”.
The Act also introduced People’s Housing Process projects, or PHP Projects which are approved in terms of the National Housing Code: Housing Subsidy Scheme, and which are exempt from the Act if they use their own labour to build a home.
The updated legislation also gives owner builders the right to apply for exemption from being forced to register as a “home builder” if they wanted to build owner build their home.
You can connect to their website: nhbrc.org
You can search their database for registered builders on their website: builder-search
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Where can I get copies of these manuals
Hi Siyabulela,
I suggest you contact the NHBRC directly on the toll-free number 0800 200 824. You can also go to the NHBRC careers website page.
Hi Irene,
The manuals are only available from the NHBRC offices direct.
You can phone them on their toll-free number: 0800 200 824 or you can find the regional offices on the NHBRC Contacts page.
We would like to purchase either an electronic copy or hard copy of
the NHBRC Home Building Manual (Parts 1, 2, 3). Can you give us
information on how to do this?
Thank you.
hi.i am a student at nelson mandela metropolitan university doing 3rd
year building. i would like to know how can a peson get a job at
nhbrc. your response will be apreciated.
What a pity you didn’t press the NHBRC to take action at the time. Now so much time has past they will probably not even be prepared to get involved. Unfortunately you, as the owner, are now liable for costs of rectifying the problem. You will need to contact a reputable builder in the area – who is registered with the NHBRC, so that you have some comeback in terms of workmanship.
I bought an upstairs unit in a complex, off plan, in Benoni, in 2005. Ever since the beginning, the two bedroom walls have been moving. When it rains in summer the walls fall back in, towards the room and in winter, when it’s dry the walls move out again, thus causing huge cracks that run from floor to ceiling, along the cornices and down the other side to the floor. The second bedroom, which is on the same side, is exactly the same. We are on the end of an eight unit block and we have another eight unit block right next to us. About three to four years ago someone did come out from NHBRC, but I didn’t receive anything in writing from him. He commented that the builders hadn’t put the boards in between the buildings. The chairman of the trustees has known about this the whole time and it was through him that the NHBRC came to look.
What I would like to know now is whose liability this is and who can I contact to get a quote on fixing this problem.
Anton this is becoming an increasing problem. If there was a certificate issued, the NHBRC should have a record of it. If the house was built after the formation of the NHBRC and implementation of the Act – viz. anytime from 2000 – and it was built by a commercial builder, then by law that builder should have been registered with the NHBRC. Certainly the fact that the property was developed only four years ago, the NHBRC SHOULD have a record.
Slightly off your query: If a house is built by an owner builder – i.e. not to be sold on – it is not mandatory for that person to register provided he/she complies with the building regs and employs a competent person to draw up the plans and oversee the build. In which case there would not be a certificate – and the law would not have been broken. But some financial institutions believe it is in their interests to insist on the certificate.
I am in the process of writing several articles covering this issue – because a further “problem” is that once the NHBRC warranty period has past, the certificate means zip. I have been notified about several cases where people DO have certificates but they only find out about shoddy workmanship after a fairly lengthy period of time. Even if this involves blatant disregard of the NBR, it seems that the NHBRC is unwilling to tackle the builders – and some ARE registered still. e.g. One of our “readers” owns a house with all the correct certification, and she has discovered after more than 10 years that it doesn’t have an underlay in the roof – even though it is at the coast and all the relevant regs state that it must. The NHBRC shrugs their shoulders and says their is nothing they can do.
Your argument with the financial institution could be that a certificate isn’t going to provide any form of security for them other than the fact that the house was built by a builder who was registered at the time (if indeed that was the case). Let’s take the scenario that he DID get a certificate and was then delisted (rather than voluntarily deciding not to continue his membership/registration). The bank would be happy! That is really stupid!
I suggest you establish with the NHBRC whether this builder WAS registered at the time. If he was, then insist that they check their records and give you a copy of the certificate. If they can’t do this then there is a serious flaw in the system.
Please let me know what happens.
I bought a home from developer last year and the property is now 4 years old. I applied to move my whole profile to another financial house, but they came back and told me they need the NHBRC certificate. I contacted my current financial institution and they never requested the certificate the convyancers doesnt have it, even Investec that financed the builder doesnt have it. The builder has since been deregisterred What am I to do now?
Hazel your problem sounds serious. I have mailed you an email address.
Hi Penny
Is it possible to get an email address where I can send in pictures. We have since discovered deep cracks in the walls and this is not the expansion joints. The cracks go down to the foundation.
Thank You
This sounds like a nightmare. Presuming the development is relatively new, the developers would have had to be registered with the NHBRC, and so you would have some recourse through the NHBRC. The problem though is that they have timelines in which people may lay complaints, and I think you could be “out of time”. However, the situation sounds so bad, I would contact the NHBRC and ask their advice. Apart from anything else, if the developers are currently registered with the NHBRC, they need to be made aware of this shoddy workmanship. You can check for registration HERE. Ultimately you might have to take legal action against the developers. Have you had any contact with them?
I have bought a town house about four years ago and is currently experiencing damping problems on the exterior walls as well as on some interior walls. On inspection it seems that very little, if any, cement was used in the plaster. The paint is also coming of. It seems to be the same problem in the whole complex. It is a very costly exercise to repair the walls due to the fact that the old “rubbish” plaster must be removed before the problem can be fixed. My question is would there be any way to hold the developers accountable for fixing the poor quality of work.
Unfortunately if your builder is not registered with the NHBRC they are not obliged to help you. All you can do is take legal action in terms of your contract. This will involve lawyers and legal costs. And probably the only way to warn others is to approach your local community newspaper and try to persuade them do do a news story based on the fact that what this contractor has done (since you say he is recommended in the area) is likely to harm other people in the area financially and otherwise. You are unlikely to get money back from him unless you go to an attorney.
I am in the process of building a house , I hired a contractor who was highly recommended by local architects and other members of the community , we signed the JBCC contract ,we are now 3 months into the project and experiencing many problems with the contractor,(foundation cracks,poor quality brickwork, breach of contract on the part of the contractor etc )I found out recently about the NHBRC ,when i contacted the local office the lady in charge said to me that they would not be able to offer me any help in dealing with my contractor since my house is not registered with them .what are my options and is this true ? is there anything i can do to recover my money that has been paid to him for stuff i now have to redo ? i want to warn others as he is very recommended in the area . Please help
I suggest you do so as a matter of urgency.
You have a problem. I don’t understand how people pay in full for jobs that are not yet complete! Sheer stupidity. The fact that he is registered with the NHBRC gives you one lifeline – other than taking him to Court via a lawyer. Contact the NHBRC and find out which process you need to follow to correctly lodge a complaint. They should be able to force him to finish. If he doesn’t they can take action against him. Let me know what happens.
what is the procedure in recovering funds that are already paid to builder who is registered with NHBRC he is gone promising to come finish and never do and he is full paid for job not yet done?
Hi Penny, the Inspector came on Friday and told me that I have to take up the matter with the NHBRC Quality Assessor because the matter falls out of their expertise !
The NHBRC was only formed in 1999. To track them down you will need to have some details – e.g. someone else who had a house built by them, who might have paperwork that shows who the directors were. But if they closed down, it’s not going to help you. The City’s Ombudsman probably is the best bet. You haven’t said though what they are saying you may or may not do in terms of the building. Are they telling you to demolish? Are they preventing you from adding on?
I think that is a good idea. Is it possible to take photographs of the bad workmanship?
I don’t know why my search didn’t come up with them, I have searched again and in fact they have three registrations; this one and then Cosmopolitan Projects Johannesburg Reg No 1-118594456 and Cosmopolitan Projects Tshwane Reg No 1-118853294.
If you have purchased the house, you should have received an NHBRC certificate. In any case, I would contact them and explain your complaint, and ask exactly what you should do. They have a complaints procedure that needs to be followed.
Regarding to yesterday’s quiry of erf No. 20082 I contacted the City of C.T. Building Inspector’s of Khayelitsha infact they are the people who informed me of that error and refered me to City’s Ombudsman who also to this day couldn’t come with something positive. Also inform if there is a way I can trace Kaya Homes for I think they wouldn’t have carried out such a project in 1995 if they weren’t registered with NHBRC. Please help………..
It is a new dwelling and a new development (occupation at the development started in December 2012). If I understand you correctly I should take this up with Building Inspectors at the City of Tshwane to find out why they approved a sub-standard structure.
I just went to their website http://www.cosmojhb.co.za/company_profile.html and this is what it is written there…..
The company was founded in 1991 and have built 17,000 houses since to become the biggest residential property developer in South Africa. All our houses are registered with the National Home Builders Registration Council (NHBRC)
(membership registration no.197)