Reponsible housing developers' traits and qualiies expected

Traits of a responsible housing developer

KNOCK, knock! Any “good” housing developers out there?

I am reluctant to use the words “good developers” as the words are not in my vocabulary. However, there are responsible ones and more are joining this category.

The qualities of a responsible developer are to be emulated, if you can find them.

The housing industry has come a long way since the advent of large-scale housing development in the late 50s and early 60s. The players in those times were bona fide entrepreneurs. Most probably, conscience ruled and pride in workmanship, timely delivery of quality and affordable houses were their hallmarks.

The present delivery system of “sell-then-build” through progressive payments is fraught with risks for the unsuspecting house buyers. These second generation housing developers, “good” or bad, are used to the lucrative profits from the housing industry. This is so because the post-independence period has been a period of high population and economic growth. Hence, the demand for housing is ever increasing. In a sellers’ market, the buyers are always at a disadvantage. When greed is inversely proportionate to conscience among industry players, the situation can get very bad indeed.

We often hear of developers lamenting about the shortage of workers (legal or illegal, skill or inexperienced), shortage of building materials, complying with new laws or regulations that made it hard for them to complete their projects on time. At the same time, we also hear of projects making multi-million ringgit in profits for the developers and we do not see or hear news of housing developers retiring or quitting the business entirely.

This would mean that the housing development is still a lucrative business. In fact, more rookie developers are joining the arena because the sell-then-build system allows them to make money from people’s money.

It has become a ‘riskless venture’ where profits are guaranteed, and in the worst scenario, the government will mop up the abandoned housing project, befitting the adage: Profit Privatised, Losses Nationalised’

Enough of the bad ones, we at HBA do keep our ears opened for the qualities of responsible developers to be emulated. In the first place, how do buyers judge if their developers have been responsible? The construction industry is a unique field. It is one of a few professions where no formal education is required.

There is no formal award giving ceremony by buyers to tell the world their developers have been ‘good’ and responsible.

There are also some other things the responsible developers do that prove they have a passion for their profession. Here are some of the traits practised by responsible developers.

Attention to environment and existing neighbourhood

Responsible developers do not just depend on their buyers to pass the word around about their reputation. No new project is an island. There are existing neighbouring projects, trees etc. A responsible developer ensures the existing neighbourhood is not disturbed by their new development.

If there are complaints, such as cracks, a landslide and floods that the new construction is causing to the existing neighbours, they are quickly attended to. They also ensure that the existing roads are kept clean regularly from construction activities.

Amenities, facilitiesand infrastructure

Developers who provide adequate amenities and facilities like playgrounds, schools, markets, community halls and even police booths are not only fulfilling the obligations imposed by the local council but also their social responsibilities to society. These developers are commendable as good corporate citizens. It enhances their image too. There are also developers who invest and build infrastructure first prior to selling their houses.

Takes pride in quality and timely rectification

Whether low-cost or high-cost houses, chasing the developer to rectify shocking defects, bad workmanship is a nightmare to buyers who lose out while waiting for repair works.

Responsible developers do their own quality checks before handing over their products. Caring developers do practise the following before handing over their products:

• Adopt quality checks at all stages of construction, test and commissioned utility supplies;
• Clear and clean individual units and construction site of debris;
• Ensuring the Certificate of Compliance and Completion (CCC) is obtained with the handover of units;
• Retain a team of competent workers to do rectification promptly if there are complaints on defects.
• Keeping sufficient stock of products like floor tiles of the same quality and make.
Some developers even extend the mandatory defects liability period of 24 months. We have also heard of developers providing alternative lodgings for their buyers while waiting for defects to be corrected.

Timely delivery

Time is the essence of the contract of sale and purchase. Houses should be delivered within the time stipulated in the sale and purchase agreement ie within 24 months for ‘land and building’ and 36 months for ‘building intended for subdivision’. If, for whatever reason, there are delays, compensation should be paid immediately to buyers without second thoughts or finding devious ways to ‘short-change’ the buyers.

Responsible developers keep their buyers informed of delays and tell them of the next expected delivery date. Some buyers even told us of the extras they have received at delivery time, which surely endear them to the developers. These are some of the ‘welcome packs’ that they have received: useful gifts like a key box; warranties from paint companies, auto-gates, pest control, electrical appliances; certificates of treatment for termites / pest control; a certified copy of the CCC issued by the architect and certified copy of the building plans and plans that relate to electrical wiring and water piping so as to facilitate future renovation.

Interest charged

One clause in the sales contract states that the buyer is responsible for late payment interest. It is a common complaint by buyers that their developers would charge interest for late payment even though it is the fault of the end-financier or their lawyers doing the legal documentation. Responsible developers assist in ensuring that the documentations are in order and the buyer is not burdened with any late payment interest.

Joint Management Body (in stratified projects)

Responsible developers assist their buyers to form committees and be prepared for the formation of the management corporation. These developers realise that the projects they have developed will eventually pass to the owners to maintain and manage.

Encouraging community living

Developers who encourage forming of resident/ owners association are a welcome lot. Some even go to the extent of contributing monies for the formulation of buyers representative group for a meaningful channel to voice grievances. Some even provide meeting facilities and allocate a multipurpose room for the elected representative group.

Good communication

The line of communication should always be open between buyers and their developers:
• Keeping buyers informed of the ongoing projects and their products;
• Developers not to appear having shun away from their responsibility;
• Treating the buyers with respect as buyers can serve as their marketing tool. Show respect and you will gain respect;
• Transparency and accountability on monies collected;
• Providing regular accounting reports and budgets;
• Voicing of any grievances rather than through the media, which will bring adverse effect to the detriment of both parties.

Build first then sell

There is no step that can be more pronounced than for housing developers to adopt the absolute ‘built first then sell’ so that potential buyers can see for themselves the finished product before buying. We believe that in this way, most of the present day ailments afflicting the housing industry can be avoided and the housing industry will be a lot more orderly.

In the interim period, responsible developers have embarked on the Built then Sell (BTS) 10:90 concept where the buyers pays 10% and the balance of 90% to be paid upon completion of the house. They are already big names among developers that find the BTS 10:90 concept workable and feasible and are targeting to achieve the Government aspiration of making BTS 10:90

There are responsible developers whose names are synonymous with quality and trust. They are able to win over buyer’s confidence. Today, they have created their own brand names. No wonder some developers do not advertise, yet all their units are sold out even before the official launch.

By Chang Kim Loong AMN who is the secretary-general of the National House Buyers Association.


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Who is responsible: developer, contractor, local council or house-owner for the damages?

Who is responsible for slope management? Does the responsibility come with the property bought by the purchaser?

THE collapse of a slope deep in the jungle does not concern house-owners, nor do landslides along our highways or roads. They just cause a bit of inconvenience to road users.

The Government deploys men, machinery and money to get the road cleared as quickly as possible so traffic can flow again.

It is different with the slope, which is (usually) at the back of a house. The house-owner did not build it. It came when he bought the house, designed by the developer with the approval of the local council. Because it is in his compound – or because he will be affected by it in the event of a collapse – the house-owner is responsible.

But in reality, is it as simple as that? It is more than a matter of money, it may also involve lives.

The Construction Industry Development Board (CIDB) in collaboration with the Urban Wellbeing, Housing and Local Government Ministry organised a seminar some months ago. Tan Sri Ramon Navaratnam, adviser to SlopeWatch, a community-based organisation, highlighted his personal and distressing experience with the slope in his house compound. He needed to have it repaired and he was driven from pillar to post by government officers, the contractor was dilatory and the cost was high.

But who is responsible?

House-purchaser dilemma

When a house-purchaser takes his house from the developer, the latter does not certify that the slope is safe in terms of design, and “as built”, except that it is understood to have been approved.

Victim: “It had been built at the bottom of a nearly-vertical slope formed by excising the toe of a hill. Though he had no need for it, the developer would not sell the house without a part of the bottom of the slope; not only did it add to the cost of the house, it made him responsible for the upkeep of the slope.

As expected the slope collapsed, not once but twice. You see the rubble-wall collapsed with the soil when the pressure became too strong. This time, a strong wall was built together with weep holes to remove rain water that seeped into the soil so that it did not become too heavy. It held up for us but the same slope running into the neighbour’s side, collapsed.

“Are they lucky compared with the buyers of houses built on top of Bukit Setiawangsa, while they were at the bottom of the slope? The developer had apparently removed the earth from it to form the bed of the highway, the Duta-Ulu Kelang Expressway (Duke). With the entire slope removed, the houses are perched precariously at the top, as the cliché goes, like a disaster waiting to happen.

So who is responsible? Is it the developer? Where will he be after six years or if available, will he argue that the purchaser bought the house fully aware of the risks? What are the rights of a subsequent owner? Does he has any recourse against the first owner? What about the local council and professionals who approved the slope – which to an untrained eye – seems to be an unsafe construction?”

House-owners are not only innocent victims of a developer’s recklessness or the developer’s appointed professionals, be it an architect or engineer.

They may also be liable through no fault of theirs because of the way developers have disturbed the lie of the land and left it in an unsafe state for the house–owner to take care of it.

The most enduring memory is the Highland Towers episode about 20 years ago, of which there is still no satisfactory closure. The disaster should have been a wake-up call on the process of approvals and accountability.



Only a draughtsman was convicted for the design of the drainage which caused water to flow un-channelled into the ground under the condominiums causing it to turn into mud which, of course, flowed against the piles causing them to move and knocking the building off its supports. The Ampang Municipal Council (MPAJ), which approved the diversion of the drainage, was excused because of the statutory immunity it enjoyed under the law.

So, should it be more careful and conscientious? Have we not learned the right lessons from it?

There are many questions for which there are no answers.

Slope management – overcoming challenges

The question with regard to slope management brings to mind a slope management seminar held earlier this year which attracted about 400 participants. The speakers held top posts in the Public Works Department, Urban WellBeing, Housing and Local Government Ministry, SlopeWatch, head of hillslope development in MPAJ and geotechnical engineer Datuk Dr Gue See Sew. Participants attentively asked the panelists pertinent questions.

As we forge ahead, we ask ourselves, have we done enough? If not, what can we do more? What are some of the issues and challenges we are facing as residents, owners, consultants, planners, financiers and enforcers of the guidelines, managers of slopes and public safety?

And whose responsibility is it anyway? There were proposals, suggestions and recommendations for an action plan that will be adopted for its intended implementation. Some were for immediate application, while some were medium and long term in nature. Unanimous resolutions were made at the end of the seminar.

Resolutions

Some of the pertinent resolutions were:

> Improve and simplify the current guidelines on hill-site development with safety enhancement.

> Increase awareness of contractors on good slope construction practices

> Strengthen the enforcement of authorities to penalise errant slope owners

> Review the planning policies and determine the height and density of buildings to blend with the environment

> To immediately do an inventory and to gazette all remaining hill-slopes, including those that are still on state land under the Land Conservation Act, National Land Code and the Town and Country Planning Act.

> Review slope-related designs not only confined within the boundaries of the project, but within the surrounding areas.

> Make it compulsory under the law for a geotechnical accredited checker, as an independent checker, to check and verify that slope design and construction are safe and done to the best engineering practices.

> Major earthworks and slope strengthening need to be done first before construction of any buildings and structures in the development takes place

> Local authorities to collaborate with community monitoring groups (to be the eyes and ears)

> To make it compulsory for slope owners to appoint professional engineers to inspect slopes on a regular basis on high-risk slopes and to rectify any defects for slopes of certain categories

> New engineered slopes to have a maintenance schedule and manual, including drainage systems. Old slopes, in particular, should be under a maintenance programme by the local authorities

> Introduce a fund to cover long-term infrastructure maintenance of certain slopes that require high maintenance and are handed over to local authorities

But the most important of them is to set up a centralised body to support the 154 local authorities on new hillside developments. It should be modelled after the geotechnical engineering office in Hong Kong.

The Government and public will be hearing more of this proposed “centralised body” in due course from the Expert Standing Committee on Slope Safety initiated under CIDB.



 By CHANG KIM LOONG - Buyers Beware The Star Nov 15 2014

Chang Kim Loong is the honorary secretary-general of the National House Buyers Association.