Tuesday, 28 October 2014

Red Tape and your Home Building


"Red Tape", not to be confused with the yellow and sometimes white tape used to measure
things, is one if not the major frustrations and delays in building the house.

You have everything figured out,  put in an offer to purchase the land, applied for a building bond (unless you have cash  from a solid BEE contract or a trust fund from good old grandpa that had a contract to manufacture steel for the Nats). You have found a designer or architect or a lowly draughtsman, plans are done, even spoke to what you think is reliable contractors, which are ready to go, and just waiting for the deposit (They need that for a new bakkie). You are ready to go, “turn the soil”, then OOPS, you hear off such things as NHBRC enrolment, departure applications, HOA esthetic approval and there are quite a few others.  You think “OK this is no biggie, happens to everyone”.  WRONG, it is a time eating, “no end in sight” delay nightmare.

So what are these things and where do they come from? There are many organisations that have their fingers in the building pie. Some exist by law, others because they make money off you, and the rest to annoy you. They all have one thing in common, they don’t give a sh..t about your time and your money lost because of their “red tape”.

So who are they? I am not going to go in detail on them, because that will require and earn me a PHD thesis, but it is CRITICAL that you understand them and their rolls and impact.

You have the Banks (they just want your money). Understanding a building and home loan application and the cash flow implication of that is difficult. I can guarantee the bank clerk that deals with it has no idea and you cannot get hold of a Manager or backroom staff member in the know. You just have to submit the forms and they make no sense. So try to speak to someone that GETS this process and the cash flow implications. Two things you want to pay attention to is, “start up capital“and “bridging finance”.  If you build with me I can help and explain these and believe me you need to understand these.

Then you have the Local authority for the Plan approval. Or that is what you think. When the guy, with his Fake grade 10 certificate, at the counter studies your plan, (that is after you have been back three times to get the forms) indicates with an expression of triumph, you are going to have to revisit the zoning, or the departure, or get SG’s office or go back to get the HOA approval. The latter sometimes does not even exist and there might be some more problems (actually there are more). Now you project is set back, not by weeks but months if you are lucky and it happens the majority of the times.

Somewhere you have heard of the NHBRC, never paid much attention, but you should have. They can be nasty if you don’t enroll your house on time, pay your fees, use a registered builder, but at least they are quick. I can only enroll the property when all the above (banks, local authority) is correctly done and completed and their fees paid. Once again, lots or forms to be completed, time wasted and frustration.

So hopefully you will get some idea where you time is running to. You are pulling your hair and the building has not even started. At least with your contractor you have someone to shout and scream abuse at.  With the “red tape people”, well they just don’t care and move your forms to the back of the line or lose it, if you annoy or scream at them.

Now you are asking yourself, “what the f .., how am I going to get out of this mess with my sanity intact?”  Not to scare you, but there are more.  So to help you with this, you need a “FIXER”. In other words someone that understands the processes and knows people that knows people. If you build with me I can help and explain these and believe me you need to understand these.

ASK ME
* Note - if you find the blog interesting, it makes more sense to read the blog entries chronologically from the start.

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