New set of performance standards introduced for contractors

31 August 2015

The Gauteng Department of Human Settlements has introduced a new set of performance standards for contractors in a bid to manage under-performance in the industry.

Gauteng Human Settlements MEC Jacob Mamabolo said Gauteng’s growing demand 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.

He said the move forms part of the turnaround strategy of the department aimed at improving performance and capacity to be able to deliver Mega Projects.
The MEC said 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,” he explained.

Some urgent interventions to assist in fast-tracking housing delivery include the National Home Builders Registration Council (NHBRC) assisting with inspections and approvals.
Performance standards have been revised for government officials (Construction Project Managers) and Mamabolo said action will be taken against those responsible for poor performance.

“The department is also taking action against corruption relating to corrupt relationships between employees and contractors. Another form of corruption relates to the awarding of houses to the incorrect beneficiaries, which included people like councillors.”

Meanwhile, during the first quarter, the department recorded an improvement of 41% compared to the previous year. The department has also achieved an unqualified audit.

Contractors raised their concerns and frustrations with the department – including the lack of technical support, legal and contractual issues, delays in quality assurance and approvals.
MEC Mamabolo committed to resolving the issues and creating an ongoing platform to meet with contractors on an ongoing basis.


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