Download NBRC BUILDING AGREEMENT

Before you build

• Ask to see the home builders current registration certificate.
• Telephone the NHBRC to confirm whether the builder is still registered.
• Take time to inspect some of the homes built and completed by the builder.
• Talk to housing consumers who have made use of the home builder’s services.
• Make sure that the builder provides you with a contract for the building of your new home.
• Carefully inspect the terms and conditions of the contract.
• Keep a copy of the written and signed contract.
• Keep a record and proof of all payments made to the home builder.
• Be aware of the enrolment fee applicable.
• Never pay a builder in advance of work being done – only pay or authorise payment once work has been completed to your satisfaction.
• Draw a list of all problems and/or defects (snag list) when moving into the new home. The snag list should be handed over to the builder within 90 days of occupation.

Inspection of Homes

The NHBRC inspects all enrolled homes at key stages of construction. The objective of inspections is to protect housing consumers against poor workmanship during construction. In the situation where the inspector identifies a deviation from the NHBRC Home Building Manual, a non-compliance will be issued to the home builder.

The home builder will be given reasonable time frames within which to rectify the non-compliance. If the builder is unable or unwilling to rectify, the NHBRC will stop construction and institute its builder disciplinary process.

Warranty Cover

By enrolling your home with the NHBRC, you are complying with the relevant South African law. Home enrolment allows the NHBRC to conduct quality home inspections at various stages of construction and provides housing consumers with warranty cover for minor defects identified within the first three months of occupation, roof leaks identified within the first year of occupation and cover against major structural defects identified within the first five years of occupation.

In the event that a builder is unable or unwilling to rectify reported defects, the NHBRC can rectify the defects, following the completion by the housing consumer of a complaint and conciliation process.

Maximum amounts payable

The cover is for 5 years on major structural defects.

The maximum amount payable is the lesser of the Enrollment Value of R500 000.

The payable amount includes professional fees + accommodation + transport.

If you follow these requirements and ensure that your house is enrolled, the NHBRC will:

Conduct a minimum of four inspections on your house, to see if the construction is properly done; and

Deal with complaints of non-compliance during construction.

Your house will be covered by a five year warranty scheme against major structural defects, calculated from the date of occupation.

The builder will be obliged to rectify:

Any deviation from the terms, plans and specifications of the agreement or any deficiency related to design, workmanship or material that you notify him of in writing within 3 months of occupation;

Roof leaks you notify him/her of in writing within 1 year of occupation; and

Major structural defects you inform him/her of in writing within 5 years of occupation.

Elements of a Construction Contract

1. Name of contractor and contact information.
2. Name of homeowner and contact information.
3. Describe property in legal terms.
4. List attachments to the contract.
5. The cost.
6. Failure of homeowner to obtain financing.
7. Description of the work and the completion date.
8. Right to stop the project.