Question NW3677 to the Minister of Human Settlements
11 December 2023 - NW3677
Khumalo, Dr NV to ask the Minister of Human Settlements
What are the full relevant details of the measures that her department has taken to address the widespread challenges associated with the high number of abandoned housing projects due to the non-performance of contractors?
Reply:
Following her assignment to the human settlements portfolio in 2021, Minister Kubayi declared the unblocking of human settlements projects as part of her apex priorities as these deny qualifying households their right to adequate housing and dignity. Thereafter the Minister directed her department and its sector partners (Provinces and Municipalities) to unblock all blocked or abandoned projects over a period of three financial years, namely, 2022/23 – 2024/25.
Subsequently, all provinces collectively identified a total of 320 blocked and incomplete projects which were placed in their 2023/24 Business Plans and later approved by the Minister with the requisite budget.
The human settlements sector defines a blocked and incomplete project as; A project where no progress delivery has been made for a period of 12 months following the first payment to the contractor. Blocked and incomplete projects include serviced sites and houses at different levels of construction namely, slab level, wall-plate level, roof level, etc.
The most common factors that lead to the blocking of human settlements projects are illegal land occupations, geotechnical variations, construction mafias, community unrest, the escalation of material costs, the lack of bulk infrastructure and link services including poor performance by contractors (some of whom would have abandoned sites).
The Department continues to monitor and support the progress of provinces on the unblocking of blocked and incomplete human settlements projects through physical site visits and the Provincial, Municipal and Human Settlements Entities Performance Reviews that are held each quarter.
In addition to the above, the Department has encouraged all sector partners to;
- Create mechanisms through which they will develop, empower and support small, medium and micro enterprises.
- Strengthen their Service Level Agreements (SLAs) and contracts to enforce penalties and consequences against non-performing contractors and;
- Terminate the contacts of non-performing contractors as a last resort.