Oral Answer by Ministry of National Development on quality of BTO and DBSS flats
Jul 13, 2015
Mr David Ong Kim Huat: To ask the Minister for National Development
(a) whether there has been a significant number of complaints over the quality and workmanship of DBSS flats which are supposed to be of higher quality than regular HDB flats and, if so, why;
(b) for these complaints, whether there are lapses in the quality audit of the housing units; and
(c) whether there is an inherent mismatch in price and quality with homeowners paying premium prices for these 'premium' flats.
Mr Yee Jenn Jong: To ask the Minister for National Development
(a) what is the number of complaints that HDB received with regard to defects, poor quality or dissatisfaction with
i. new Build-To-Order (BTO) flats and
ii. Design, Build and Sell Scheme (DBSS) flats that have been completed in the last two years;
(b) how has the rate of complaints changed over the past 10 years;
(c) what is HDB's role in ensuring quality and dealing with complaints about quality of DBSS flats; and
(d) whether a Zero Workmanship Defect Pledge can be introduced for contractors and developers to pledge their commitment to work towards zero workmanship defects.
Mr Baey Yam Keng: To ask the Minister for National Development in light of the recent issues with various projects under the Design, Build and Sell Scheme, what is the role of HDB in
(a) ensuring that the developer commits to its obligations;
(b) mediating any impasse between the developer and buyers; and
(c) helping aggrieved buyers.
Mr Zaqy Mohamad: To ask the Minister for National Development
(a) whether there has been an increase in complaints of quality of work in new BTO and DBSS developments in the past 12 months;
(b) what is the average proportion of new residents that have complained of defects for such new developments;
(
c) what are the primary causes of such defects and what quality control measures does HDB have in place to check and ensure the high quality of public housing prior to the keys being handed over to the residents; and
(d) what measures are in place to ensure that building contractors are responsive and have sufficient capacity to address the complaints effectively and quickly.
Answer:
Most of our new flats are sold under the Build-To-Order (BTO) programme where HDB directly influences design, construction and pricing. BTO flats are sold directly by HDB to flat buyers and HDB is fully responsible for the timely delivery and quality of the flats sold.
Despite a significant ramp up in our BTO programme over the last four years, the quality of BTO flats has not been compromised. On average, about one third of all new residents approach the Building Service Centre (BSC) for assistance after collecting their keys. Some of these requests for assistance, about 25%, relate to issues such as low water pressure due to compliance with water saving measures, as well as paint stains that need to be cleaned. Other requests, about 75%, relate to defects that residents come across. The vast majority of the reported defects are surface imperfections such as hairline cracks on walls, scratches on timber floor, or uneven tile joints. The number of defects reported has not changed significantly. Such imperfections are mostly within acceptable industry norms and these are also common in private developments. They can and should be rectified quickly by the contractors, and do not affect the structural integrity or safety of the building.
There is an objective industry standard to measure the quality of building projects. It is assessed independently by BCA and is called the Construction Quality Assessment System (CONQUAS) score. Over the years, the quality of BTO flats has improved significantly, from a score of 79 in 2003 to 89 in 2014. It continues to rise and is comparable to that in private developments.
HDB takes quality seriously, because these are people’s homes, and a major long-term investment. And people’s expectations are rising. It has a system of checks in place to ensure that its flats are free of major defects. However, due to the high dependency on workmanship of individual workers, we can expect that there will be some defects. Sometimes, this is due to differences in the understanding of what constitutes a defect. For example, some owners have given feedback on colour inconsistencies for floors with timber finishes. As timber is a natural product, it is not possible to achieve a perfectly homogenous look.
There is a Defects Liability Period (DLP) to allow for any defects to be rectified. HDB also requires its contractors to deploy staff at the on-site Building Service Centre to respond to residents’ requests promptly and to rectify all defects within a stipulated time-frame.
But we do have zero tolerance for defects which may compromise structural or safety standards, or which deviate significantly from what has been promised to buyers.
Besides the BTO programme, there is the Design, Build and Sell Scheme (DBSS) to give flat buyers more choice by allowing private developers to build and sell flats directly to the buyers. HDB sets the buyer’s eligibility requirements and provides broad planning parameters such as the mix of flat sizes and the range of social and community facilities to be provided. Within this framework, the private developer of the DBSS project is responsible for the design, pricing and construction quality of the flat. Prospective buyers, in turn, decide if the price set by the developer is acceptable for the design and furnishings provided.
To protect homebuyers, the DBSS developer has to fully comply with the requirements of the relevant authorities such as URA and BCA in the design and construction of the project, and the Controller of Housing in the marketing and sale of the units.
Furthermore, under the Sale and Purchase (S&P) Agreement between the DBSS developer and home buyers, the developer is contractually obliged to build the unit in a good and workman-like manner. The S&P also requires the developer to rectify any defects within the DLP.
DBSS projects are developed by different private developers, who may offer varying fixtures and finishes for their project. The feedback on the quality of finishes would differ from project to project. Nonetheless, residents who face issues with the quality of the flats may report them to the Building Service Centre managed by the developer during the DLP. If the developer fails to address them, the buyers will have legal recourse against the developer as provided for under the S&P Agreement. Although HDB is not a party to the S&P Agreement, HDB plays an active role in ensuring a fair and satisfactory outcome. When DBSS flat buyers raise concerns or feedback about DBSS units, HDB will ask the developer to take appropriate action.