The growing demand in Gauteng for housing and the need to respond to the demand through Mega Human Settlements Projects will require a drastic improvement in performance by all housing contractors contracted to deliver housing for the citizens of Gauteng.
Today the Gauteng Department of Human Settlements announced new service level standards for contractors in an effort to increase performance and manage under-performance as the province accelerates efforts to increase output and meet targets for the financial. The move forms part of the Turnaround strategy of the department aimed at improving performance and capacity to be able to deliver Mega Projects.
Speaking during a meeting with housing all employed contractors at Emperor’s Palace in Ekurhuleni, Gauteng Human Settlements MEC Jacob Mamabolo expressed concern that the Department has been on a downward trend in delivering houses in the past five years. MEC Mamabolo noted that money spent on building houses increased over the years while the number of housing opportunities delivered declined.
“We must change the tide. My plea is that we cannot continue like this. By the end of financial year we must see an upward trend in the numbers. We must close the gap between expenditure and output,” MEC Mamabolo commented.
MEC Mamabolo noted that the situation was not all dark and gloom as there were signs of improvement. He noted that the Department recorded an improvement of 41% during the first quarter compared to the previous year. Also the Department achieved a qualified audit outcome.
MEC Mamabolo announced that performance will now be monitored through a revised Service Level Agreements (SLA) which all contractors in the province are expected to sign.
“The SLA’s will commit contractors to deliver on targets set and agreed by all parties. The SLA’s will not interfere with existing contracts. However punitive steps will be taken against non-performing contractors which will include termination of contracts” commented MEC Mamabolo.
The meeting also provided contractors with an opportunity to raise their concerns and frustrations with regards to the department. These include late, lack of technical support, legal and contractual issues, delays in quality assurance and approvals, and many others. The MEC committed to resolving the issues and creating an ongoing platform to meeting with contractors on an ongoing basis.
Some of the urgent administrative interventions to assist in fast-tracking housing delivery include bringing on board the National Home Builders Registration Council (NHBRC) to assist with inspections and approvals processes.
MEC Mamabolo also indicated that performance standards have also been revised for government officials (Construction Project Managers) and that action will also be taken against those responsible for poor performance.
MEC Mamabolo also announced the department is taking action against corruption. “One form of corruption relates to the corrupt relationships employees have with some contractors. Another form of corruption relates to the awarding of houses to the incorrect beneficiaries which included a number of people like councillors.”
MEC Mamabolo said an investigation by the Department showed that some of the relationships between officials and contractors were so toxic that they affected the quality of houses and the cost of building. However the scale of the problem is manageable and the Department was already winning.
He said the investigations were continuing and this would send a strong message to other officials that underperformance and corruption in the Department will be dealt with harshly.
Enquieis:
Motsamai Motlhaolwa
Cell: 079 897 2240
