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www.swiftreg.co.za/swiftreg/P...
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And now for the video script... :)
In this video I will explain everything that you need to know about registering your company with the National Home Builders Regulatory Council or NHBRC. This registration requires a one hour open book test and the fees for the project enrolment for the NHBRC Warrantee Fund can be up to R34,000 per project, so buckle up.
Just to be clear the NHBRC regulates the home building industry in South Africa, meaning every new structure designed for human habitation must be registered with the NHBRC. The rest of the construction industry is regulated by Construction Industry Development Board or CIDB which falls under the Department of Public Works. I have made a separate video on this topic.
The NHBRC is a SOE which falls under the Department of Human Settlements whose aim is to regulate the home building environment by enforcing strict building standards and guidelines to control the quality of the building work. A very noble cause.
To do this, it requires funding which it gets from the registration, renewals and the warrantee fund. This warrantee fund is the big daddy and derives its income from each new building project. The builder is required to pay the NHBRC a percentage of the building value including the land up to a maximum of R34k. Only once the funds have been paid will the NHBRC gives permission for the building work to commence. As you can imagine this fund is massive and is currently valued at R6.6 Billion
This money is used to repair any defects should the builders abandon the project and not rectify the faults. So in essence it’s an assurance for the home owner that the home will be completed to the required standards. The warrantee fund covers all structural work for 5 years, roof leakages for 1 year and finishes for 3 months. It will pay up to a maximum of R0.5m per project. The fund has on average paid R10m per year in claims which amounts to only 0.0015% of the fund.
So who should register with the NHBRC? All Home Building Companies must be registered as well as each home building project must be enrolled with the NHBRC. One of the requirements for the building company to be registered is that one of its representatives, usually the technical manager must pass a 1 hour open book test within two weeks of registering the company with the NHBRC. You only have two opportunities to pass the test or your application will be rejected and the registration fee of R740 will be forfeited.
The course material for the test comprises of the South African National Standards Book and the Home Builders Manual which must be purchased from the NHBRC at a cost of R3200 (however it can also be rented for R90 per day)
In practical terms how does the oversight work? Lets assume the building company is already registered with the NHBRC. Now, 15 days prior to the start of the new building project, the development must be registered with the NHBRC. This is when the builder has to pay the money to the Warrantee Fund. Assuming everything is in order the NHBRC will issue a commencement certificate and the construction can start.
At various crucial building phases such as Foundations, Super Structure, Practical Completion and Storm Water the NHBRC inspector must visit the site to sign off on the quality of the workmanship. It is a good idea to contact the inspector beforehand to arrange an appointment as this will prevent costly delays for the contractor. It is good to note that the NHBRC does offer free training for aspirant builders to ensure the building quality meets the required standards.
How does the registration process work? First the application form must be completed. It is reasonably detailed and it requires professional references. Once this it completed the registration fee of R740 needs to be paid after which the company has 2 weeks to write the open book test. On successful completion of the test you will need to pay the annual fees of R530 before your certificate will be issued to you in person at your local NHBRC branch. Good luck I am sure you will ace the test.
To end off, I must warn all home builders that it is compulsory to register with the NHBRC as failure to do so could result in a R25000 fine or imprisonment for up to a year for each of the directors. We would like to remove this threat by assisting you with your application and making the process as easy as possible.
I hope you have found this informative, so as always remember WE ARE HERE TO HELP