Gauteng introduces new performance standards for housing contractors
New service-level standards have been introduced to improve the performance of housing contractors appointed by the Gauteng Department of Human Settlements.
The move forms part of the department’s turnaround strategy aimed at improving contractors’ performance and capacity to deliver megaprojects.
Gauteng Human Settlements MEC Jacob Mamabolo notes that the department had been on a downward trend in delivering houses in the past five years, adding that money spent on building houses has increased over the years, while the number of housing opportunities delivered have 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 says.
Performance would now be monitored through revised service- level agreements (SLA), which all contractors in the province are 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 says.
However, he cited some improvement. The department has recorded an improvement of 41% during the first quarter, compared with the previous year, while achieving an unqualified audit outcome.
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