New service level standards have been introduced to improve the performance of housing contractors appointed by the Gauteng Department of Human Settlements.

The move formed part of the department’s turnaround strategy, aimed at improving contractors’ performance and capacity to deliver megaprojects.

Gauteng Human Settlements MEC Jacob Mamabolo noted that the department had been on a downward trend in delivering houses in the past five years, adding that money spent on building houses had increased over the years, while the number of housing opportunities delivered had declined.

“We must change the tide. By the end of the financial year, we must see an upward trend in the numbers. We must close the gap between expenditure and output,” he said.

Performance would now be monitored through revised service level agreements (SLA), which all contractors in the province were expected to sign.

“The SLAs will commit contractors to deliver on targets set and agreed by all parties. The SLAs will not interfere with existing contracts. However, punitive steps will be taken against nonperforming contractors which will include termination of contracts,” Mamabolo said.

However, he cited some improvement, noting that the department recorded an improvement of 41% during the first quarter compared with the previous year, while achieving an unqualified audit outcome.

At a meeting held at Emperor’s Palace, in Ekurhuleni, contractors were provided with an opportunity to raise their concerns and frustrations with regards to the department. These included lack of technical support, legal and contractual issues and delays in quality assurance and approvals.

Mamabolo committed to resolving these issues and create a platform to meet with contractors on an ongoing basis.

Some of the urgent administrative interventions to assist in fast-tracking housing delivery included bringing the National Home Builders Registration Council (NHBRC) on board to assist with inspections and approvals processes.

Mamabolo also indicated that performance standards had been revised for government officials and that action would be taken against those responsible for poor performance.

The department would also crack down on 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, including councilors,” he noted.