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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I have came upon a contractor illegaly utilising another contractor’s
NHBRC Certificate. We wanted to purchase one of the dishonest
contractor’s houses but are too scared due to his dishonesty. The
legal NHBRC contractor wants to pursue this matter but does not know
how to go about with the contractor fraudulently using his
certificate.
The NHBRC is a repugnant organisation that has completely failed it’s mandate. It is corrupt, as detailed by the auditor general in their last audit report. It is grossly inefficient, having repaired a very small number of houses while collecting billions in fees. It provides a forced insurance product that most home buyers don’t want, while being motivated solely by greed (as most NGOs with a fee collection mandate are). It’s ineffective, having failed to ensure the proper construction of public hosing, leading the minister to ask treasury to provide hundreds of millions of rands to repair shoddy government mandated housing.
It was a mistake to legislate a new organisation to duplicate the work of the MBAs, and a bigger mistake to legislate a forced insurance product without involving the exponentially more competent local insurers, then giving the collection mandate to an unscrupulous NGO with very poor oversight. These mistakes should be rectified by transferring some of the NHBRCs mandate to the MBAs and abolishing the NHBRC and their forced insurance product.
I can’t imagine how anyone can support this vile organisation which provides no value to home builder or home owner. This is completely at odds to the opinion of every property professional I have spoken to, including builders, developers, engineers, architects, project managers and several home buyers. They all agree that the NHBRC is a worthless burden on the industry. Shouldn’t a home owner have a choice, rather than having government interfere in his affairs?
Karl, Yes this is what it means. Every home builder is required by law to be registered with the NHBRC. If he is not registered any longer, he cannot continue building. But this also means he is in breach of contract with you, because he cannot legally complete the job. I would go as far as to say he is operating fraudulently – the NHBRC Fraud Hotline is 0800 203 698.
The NHBRC states:
“Your home enrolment with the NHBRC insures you against poor building practises. Our quality building inspections ensure that your home is not exposed to structural failure.” Furthermore it also says: “A housing consumer (home owner) will have the assurance that a homebuilder registered with the NHBRC has agreed to abide by the rules and regulations laid down by the NHBRC. This means that the homebuilder has agreed to build the enrolled house to a minimum quality standard that has been set out in the NHBRC’s Home Building Manual.” The contractor would also have signed a Code of Conduct with the NHBRC. Here’s the link.
So you have your home enrollment and the builder has in effect reneged. BUT you will still be covered by the NHBRC warranty – so I would contact them as a matter of urgency. “The warranty scheme protects the housing consumer by providing a five-year warranty against major structural defects on the new home, 90 days defects liability warranty cover,12 months roof warranty cover.” But your house is clearly not complete, so you need to instigate a call to action by the NHBRC.
I would also contact the bank and instruct them not to release any further funds to the builder.
Please let me know what happens, because I really believe very strongly that we all have a right to know whether or not the NHBRC is in fact fulfilling the function as mandated by Government.
Please have a look at this link as well, and scroll down to the section on Inspections. To date has the NHBRC complied with inspections?
I can’t see anything that covers the implications of a builder not remaining registered with the NHBRC.
Hi there,
Thanks for the earlier advice!
My project started in 2010 and at that time the builder had a valid certificate and was registered with NHBRC, my property was enrolled with NHBRC before the actual building started. I found out a few weeks ago that his certificate expired in July 2012. He continued to work on my project after this time. The fact that his certificate has expired does this mean that he should not be engaging in any sort of building? My project is currently being financed by the bank as a building loan.
regards,
Not only do you have valid grounds, you have legal grounds! It is against the law for a building contractor to build unless he is registered with the NHBRC. Report him to the NHBRC and also ask whether he enrolled the house with them prior to building. If he didn’t, that would be a further contravention. Ask their advice in terms of what you should do now. I’d be very interested to know what they say – let me know. Good luck.
When I appointed my building contractor he provided proof that he was registered with NHBRC and provided a valid NHBRC certificate. I recently found out that his certificate has expired for 6 months and he never advised me of this and he continued to build. What do I do? I would like to remove him from my project. Do I have valid grounds to request that he be removed.
Sello it’s not a matter of looking for benefits from the NHBRC. Anyone making a living from building homes is forced, by law, to join. The benefits are aimed at home owners – to protect them from fly-by-night contractors and bad workmanship. All builders are put onto the NHBRC database so that the public can check that they are legally registered. Their mandate is not to find work for builders.
Penny,are there any benefits after registering with nhbrc?like being putted on the nhbrc database,or getting any building job from nhbrc for clients?
Mlungisi, we are an independent website that provides information to the public. You can find out more about the NHBRC on this page and at their website – CLICK here.
But unless you are building houses and selling them, you don’t need to be registered with the NHBRC.
Hi ,im specialing in plastering and painting homes is it necessary to be registered with you and how am i going to benefit ,since im new in this industry and willing to advance.Thanks
I’m sorry Nadesh we don’t recommend companies or professionals. You don’t need a lawyer to see the project through – though you might consult a lawyer to check any contracts you sign.
Sello you only need to register if you are a building contractor – i.e. if you have a business that involves building houses for other people. If you are a sub-contractor either to a contractor or an owner builder it isn’t necessary. I don’t understand the second part of your question.
Hi,im just a qualified bricklayer/builder,so must i be registered with nhbrc,and are ther any exemptions for the qualified ones when registering?
Hi Mike,
We do not deal with registrations for the NHBRC you can email them directly enquiries@nhbrc.org.za or go to their website and check for registered builders at nhbrc.org.za and see if you are still on their list.
Good morning
I would like to find out about the NHBRC.I was registered in 1998 when
the company started.I have started up a new business in Cape Town and
would like to find out if you would be able to find my old
registration documents on your system or must I apply again.
Hello Penny
We just bought a house on the Rock and we are planning to do some renovation and also extend the house with one level. we have already contacted an architect which have drawn the plan to get approved. Now our challenge is to get a good construction company, could you advice any? also we want to appoint a lawyer to see through the project, it is adviseable?
thank you for your feedback
Ahmed you need to apply for an exemption from the NHBRC. They cannot withhold it unfairly. If they do you have recourse to the relevant department. If you don’t apply for the exemption they can fine you and stop you from building.
I intend building a block of flats for rental purposes(for personal income) -not resale-no bond is required and I will construct the building under my supervision.
Do I need to register or pay a levy to the NHBRC.
I think you need a lawyer.
Hi Penny i have big problem here where by one of the bulding company registered with NHBRC is got my money (57000) rand but is unwilling to release it , the owner play hide and seek games he was supposed already to have paid the money last week because the house was sold and registered into another owner and he made promise that as soon as this money is being paid he will transfere. to give you the background of this last year i have applied for the bond and due to poor score the bank decline my application and the builder suggesed to me that he will build the house and with the deposit i had i can pay it into his account and i did that he give proof payment that i have deposited R50000 rand into his account . since the area was new development there was lot of break in and i have to put security burglars in the house , the company iu am working promise me better promotion in another province i then ask the builder what are we going to do since i have to move. the builder made it clear to me that someone was looking for the same house he wont struggle to sell it and with the security butlers i dont have to worry everthing it be priced to this new owner. i was paying this guy monthly 3000 rand and water and waste i was paying directly to the municipality but now he is coming with excuses that i owe the house 5021, 91 rand and he is refusing to handover clearance certicificate. please advise where can i report this?
Fanie, I have absolutely no idea of what you do or who you are… (I certainly don’t know that you are in the kitchen industry!) But unless you are in the business of building/construction you don’t need to register with the NHBRC.
However, if you are planning to do structural house renovations for clients – that require plans in terms of the NBR – then you will need to register.
Tilling is cultivation of the land and you don’t need to register for this.
If you meant tiling – that doesn’t require registration either.
Plumbing may only be carried out by people who are qualified and registered – and this had nothing to do with the NHRBC.
You should contact the Department of Labour for minimum wage rates.
Hi Penny
As u know i am in the kitchen industry
I whould like to ad more services to my company profile can u please tel me wich once i must register with the nhbrc
HOUSE RENOVATIONS
DAMP SEALING CEILINGS AND REPAIRS
TILLING
STEEL WORK
PLUMBING
Can u also provide me with the folloeing
wage rates for
SEMI SKILLED BUILDER / PLASTERER
UNSKILLES LABOUR
THANK U
No Fanie you don’t. The legislation is basically to ensure that people and businesses that make a living/ earn income from building houses register to protect the public. If you build or install kitchens you aren’t building houses/homes… only adding value to them.
Hi
I am a carpenter in the kitchen industry do i have to be NHBRC registerd?
thank you
Hi Sean,
It is not clear which “manuals” you mean. If it is the National Building Regulations SANS 10400 then have a look at our SANS-Contact page for all the numbers and you can get them directly from them. If you mean the Home Builders Manual Parts 1, 2 & 3 then these are available directly from them on their NHBRC-Contacts page. There is also more info about the NHBRC on our Owner Building site