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RERA Act (The Real Estate Regulation and Development Act 2016) and its implications
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PostPosted: Mon May 15, 2017 1:00 am    Post subject: RERA Act (The Real Estate Regulation and Development Act 2016) and its implications Reply with quote

Dear All


Welcome to the 11th Econference on SEFI. The subject of this Econference is the RERA Act (The Real Estate Regulation and Development Act 2016) and its implications.


As a structural engineering body, SEFI's focus will be primarily on how it affects structural engineers directly and indirectly. Enumerated below are some topics of discussion. Each topic is followed by potential queries  that need discussion

a)  Registration of every project with RERA body

The Act requires even ongoing projects to be registered with the Regulatory body. The promoter is required to fill on the website all details of the project (all permissions obtained, land title, no of flats for sale with carpet area of each, covered parkings etc.) including the duration within which he intends to complete the project.

Issues for discussion

  • What are the opportunities and risks in RERA for all stakeholders, esp structural engineers?
  • How will RERA be enforced on existing projects which are already way past their completion date but not yet even 50% completed?
  • Completing project within committed time  also entails responsibility on part of architects, engineers and other consultants  to complete their deliveries on time. They may be made liable for delays. This will require a sophisticated procedure for tracking delays and deliveries. It will also require a competent project management system for every project.  Such procedures and systems are available and been utilized in some high end projects but they are expensive.
  • There will in fact be a requirement for far more monitoring and management controls on every project to be put in place which will make project delivery  more expensive. Who will bear  the extra cost?
  • Will RERA may make it incumbent for   structural engineers to completely overhaul  old standard contracts with developers and redraft a completely new one reflecting the various new issues raised by it?
  • Is it possible that clients may have to be more disciplined and may not be able to  make too many changes on the project once it has been registered with RERA? Does this mean  Structural designers will thus be spared of redesigning projects many times over (but getting paid just once)?


b)  70% of payments from allottees to go into Dedicated Account for the project


Every project is required to have a dedicated bank account in which 70% of the amount realized from the buyers is to be deposited and which will be used exclusively for the construction of the project. Every withdrawal of money from this dedicated account is required to be certified by the Architect, Engineer and Chartered Accountant.

Issues for discussion         

  • Structural Engineers are not normally involved in the financial aspects of the project. How will they be certifying the % completion of project in terms of cost as required by RERA? What are the liabilities structural engineers shall  carry for making such a certification?
  • How will structural engineers get compensated for making such certification as this will include being involved in construction management and billings. Or will this be done by a Supervisor/special agency? The Act is silent on who is the concerned engineer.


c) Default by Promoter


If the promoter of the project defaults on the project or commits violations, the registration could be revoked and in that case,  the Regulatory authority is empowered to list the name of promoter in nation-wide list of defaulters, freeze the dedicated account of the promoter and have the said project completed by an external agency or hand it over to the group of allottees for completion of project.

Issues for discussion

  • In  a case where the original developer is removed form the project, what happens to the outstanding work and payments due to the structural engineer as well as the contract he has with the promoter?
  • The Act is silent on how the necessary permissions shall be given by the authorities in a time-bound manner as timely delivery of the project is contingent to timely approvals. Presently there are different systems in place across the country. In Mumbai there is phase wise approval being given and a lot of time is lost in  delay of interim approvals. In places like Noida, approval is given at one go and  RERA would be easier to implement.


d)  No Additions and Alterations permitted


The promoter cannot make any addition or alteration in the approved and sanctioned plans, structural designs, specifications and amenities of the apartment, plot or building without the previous consent of the allottee.
Issues for discussion

  • If the  structural design cannot be changed once the project is registered, does that mean that Engineers  have to issue good-for-construction drawings before the project commences? That would be good news indeed for structural engineers and they could also get their payments earlier!!


e)  Structural defect


The Act entails making good of any structural defect or any other defect in the workmanship, quality or provision of services by the developer for a period of five years by the allottee from the date of handing over possession  within thirty days.

Issues for discussion

  • This is likely to be a contentious issue between the structural engineer and developer. Who will decide whether a "defect" is due  to structural design fault or poor construction?
  • Is defect defined as a "visible" defect only? What happens if a subsequent enquiry demonstrates non-compliance to codes even though there is no visible defect?
  • Should the structural engineering community insist on mandatory Peer Review which should then deem the design, having been vetted, is not prima facie the cause of any defect and structural engineer will not by default beheld guilty in the event of a defect (unless a detailed enquiry points it to be the case?)?
  • What kind of Insurance should structural engineers be taking for this?
  • Is the Insurance Industry in India geared for providing such insurances?


f)   Any other related topics on RERA brought up for discussion by SEFI members.




I once again welcome you all to this important e-conference. To participate in econference , send in your responses via Email to econf@sefindia.org (econf@sefindia.org)    or  participate via website by visiting  this link.


With best regards


Alpa Sheth
Admin SEFI

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swastik engineers
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PostPosted: Mon May 15, 2017 1:44 am    Post subject: RERA Act (The Real Estate Regulation and Development Act 2016) and its implications Reply with quote

I would like to participate at this event.

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Nilesh Koladia
Swastik Engineers

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a.deshingkar
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PostPosted: Mon May 15, 2017 3:38 am    Post subject: Reply with quote

Two things comes to my mind.

1. 5 years defect liability period will make builder think of paying 100% fee after project completion. Probable allowance of 5% will be expected to be retained for 5 years. And for same time the insurance has to be in place. This will add to the overheads for already tight fees we get. At the end of the defect liability period, there should be a certificate like mechanism which warrants the payment of retained amount as well as confirms project completion in all sense.

2. Recently a new practice is getting introduced in India and especially in Mumbai. Few international consultants/Architects work on the project in initial stages of the project say concept and scheme. Later on local architects and consultant take over to take the project through remaining stages. Till date this was not conveyed to the end user (there was no need). But now I think it will be necessary to clarify the project team in the agreement to have smooth transition of services from International consultant to local consultant.

Anirudha
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PostPosted: Mon May 15, 2017 4:00 am    Post subject: RERA Act (The Real Estate Regulation and Development Act 2016) and its implications Reply with quote

please record the proceedings of seminar on dvd and later on sold to members. regards sp  On Mon, 15 May 2017 06:33:30 +0530 "sefi_admin"  wrote >                   Dear All >  >  > Welcome to the 11th Econference on SEFI. The subject of this Econference is theRERA Act (The Real  Estate Regulation and Development Act 2016) and its implications. >  >  > As a structural engineering body, SEFI's focus will be primarily on how it affects structural engineers  directly and indirectly.Enumerated below are some topics of discussion. Each topic is followed by  potential queries that need discussion >  > Registration of every project with RERA body >  > The Act requires even ongoing projects to be registered with the Regulatory body. The promoter is  required to fill on the website all details of the project (all permissions obtained, land title, no of  flats for sale with carpet area of each, covered parkings etc.) including the duration within which he  intends to complete the project. >  > Issues for discussionWhat are the opportunities and risks in RERA for all stakeholders, esp structural  engineers?How will RERA be enforced on existing projects which are already way past their completion  date but not yet even 50% completed?Completing project within committed time also entails  responsibility on part of architects, engineers and other consultants to complete their deliveries on  time. They may be made liable for delays. This will require a sophisticated procedure for tracking  delays and deliveries. It will also require a competent project management system for every project.  Such procedures and systems are available and been utilized in some high end projects but they are  expensive.There will in fact be a requirement for far more monitoring and management controls on every  project to be put in place which will make project delivery more expensive. Who will bear the extra  cost?Will RERA may make it incumbent for structural engineers to completely overhaul old standard  contracts with developers and redraft a completelynew one reflecting the various new issues raised by  it?Is it possible that clients may have to be more disciplined and may not be able to make too many  changes on the project once it has been registered with RERA? Does this mean Structural designers will  thus be spared of redesigning projects many times over (but getting paid just once)? >  > 70% of payments from allottees to go into Dedicated Account for the project >  > Every project is required to have a dedicated bank account in which 70% of the amount realized from the  buyers is to be deposited and which will be used exclusively for the construction of the project. Every  withdrawal of money from this dedicated account is required to be certified by the Architect, Engineer  and Chartered Accountant. >  > Issues for discussionStructural Engineers are not normally involved in the financial aspects  of the project. How will they be certifying the % completion of project in terms of cost as required by  RERA? What are the liabilities structural engineers shall carry for making such a certification?How  will structural engineers get compensated for making such certification as this will include being  involved in construction management and billings. Or will this be done by a Supervisor/special agency?  The Act is silent on who is the concerned engineer. >  > Default by Promoter >  > If the promoter of the project defaults on the project or commits violations, the registration could be  revoked and in that case, the Regulatory authority is empowered to list the name of promoter in  nation-wide list of defaulters, freeze the dedicated account of the promoter and have the said project  completed by an external agency or hand it over to the group of allottees for completion of project. >  > Issues for discussionIn a case where the original developer is removed form the project, what happens  to the outstanding work and payments due to the structural engineer as well as the contract he has with  the promoter?The Act is silent on how the necessary permissions shall be given by the authorities in a  time-bound manner as timely delivery of the project is contingent to timely approvals. Presently there  are different systems in place across the country. In Mumbai there is phase wise approval being given  and a lot of time is lost in delay of interim approvals. In places like Noida, approval is given at  one go and RERA would be easier to implement. >  > No Additions and Alterations permitted >  > The promoter cannot make any addition or alteration in the approved and sanctioned plans, structural  designs, specifications and amenities of the apartment, plot or building without the previous consent  of the allottee. > Issues for discussionIf the structural design cannot be changed once the project is registered, does  that mean that Engineers have to issue good-for-construction drawings before the project commences?  That would be good news indeed for structural engineers and they could also get their payments  earlier!! >  > Structural defect >  > The Act entails making good of any structural defect or any other defect in the workmanship, quality or  provision of services by the developer for a period of five years by the allottee from the date of  handing over possession within thirty days. >  > Issues for discussionThis is likely to be a contentious issue between the structural engineer and  developer. Who will decide whether a "defect" is due to structural design fault or poor construction? Is defect defined as a "visible" defect only? What happens if a subsequent enquiry demonstrates non- compliance to codes even though there is no visible defect?Should the structural engineering community  insist on mandatory Peer Review which should then deem the design, having been vetted, is not prima  facie the cause of any defect and structural engineer will not by default beheld guilty in the event of  a defect (unless a detailed enquiry points it to be the case?)?What kind of Insurance should structural  engineers be taking for this?Is the Insurance Industry in India geared for providing such insurances? >  > Any other related topics on RERA brought up for discussion by SEFI members. >  >  >  > I once again welcome you all to this important e-conference. To participate in econference , send in  your responses via Email toeconf@sefindia.org (econf@sefindia.org) or participate via website by  visiting this link. >  >  > With best regards >  >  > Alpa Sheth > Admin SEFI >       > >  >  > --

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PostPosted: Mon May 15, 2017 7:04 am    Post subject: RERA Act (The Real Estate Regulation and Development Act 2016) and its implications Reply with quote

Dear Sir/Ma'm,

I would like to participate in the E-conference on RERA.




On 15 May 2017 6:34 a.m., "sefi_admin" <forum@sefindia.org (forum@sefindia.org)> wrote:
Quote:
           Dear All


Welcome to the 11th Econference on SEFI. The subject of this Econference is theRERA Act (The Real Estate Regulation and Development Act 2016) and its implications.


As a structural engineering body, SEFI's focus will be primarily on how it affects structural engineers directly and indirectly.Enumerated below are some topics of discussion. Each topic is followed by potential queries that need discussion

Registration of every project with RERA body

The Act requires even ongoing projects to be registered with the Regulatory body. The promoter is required to fill on the website all details of the project (all permissions obtained, land title, no of flats for sale with carpet area of each, covered parkings etc.) including the duration within which he intends to complete the project.

Issues for discussion
  • What are the opportunities and risks in RERA for all stakeholders, esp structural engineers?
  • How will RERA be enforced on existing projects which are already way past their completion date but not yet even 50% completed?
  • Completing project within committed time also entails responsibility on part of architects, engineers and other consultants to complete their deliveries on time. They may be made liable for delays. This will require a sophisticated procedure for tracking delays and deliveries. It will also require a competent project management system for every project. Such procedures and systems are available and been utilized in some high end projects but they are expensive.
  • There will in fact be a requirement for far more monitoring and management controls on every project to be put in place which will make project delivery more expensive. Who will bear the extra cost?
  • Will RERA may make it incumbent for structural engineers to completely overhaul old standard contracts with developers and redraft a completelynew one reflecting the various new issues raised by it?
  • Is it possible that clients may have to be more disciplined and may not be able to make too many changes on the project once it has been registered with RERA? Does this mean Structural designers will thus be spared of redesigning projects many times over (but getting paid just once)?


70% of payments from allottees to go into Dedicated Account for the project


Every project is required to have a dedicated bank account in which 70% of the amount realized from the buyers is to be deposited and which will be used exclusively for the construction of the project. Every withdrawal of money from this dedicated account is required to be certified by the Architect, Engineer and Chartered Accountant.

Issues for discussion
  • Structural Engineers are not normally involved in the financial aspects of the project. How will they be certifying the % completion of project in terms of cost as required by RERA? What are the liabilities structural engineers shall carry for making such a certification?
  • How will structural engineers get compensated for making such certification as this will include being involved in construction management and billings. Or will this be done by a Supervisor/special agency? The Act is silent on who is the concerned engineer.


Default by Promoter


If the promoter of the project defaults on the project or commits violations, the registration could be revoked and in that case, the Regulatory authority is empowered to list the name of promoter in nation-wide list of defaulters, freeze the dedicated account of the promoter and have the said project completed by an external agency or hand it over to the group of allottees for completion of project.

Issues for discussion
  • In a case where the original developer is removed form the project, what happens to the outstanding work and payments due to the structural engineer as well as the contract he has with the promoter?
  • The Act is silent on how the necessary permissions shall be given by the authorities in a time-bound manner as timely delivery of the project is contingent to timely approvals. Presently there are different systems in place across the country. In Mumbai there is phase wise approval being given and a lot of time is lost in delay of interim approvals. In places like Noida, approval is given at one go and RERA would be easier to implement.


No Additions and Alterations permitted


The promoter cannot make any addition or alteration in the approved and sanctioned plans, structural designs, specifications and amenities of the apartment, plot or building without the previous consent of the allottee.
Issues for discussion
  • If the structural design cannot be changed once the project is registered, does that mean that Engineers have to issue good-for-construction drawings before the project commences? That would be good news indeed for structural engineers and they could also get their payments earlier!!


Structural defect


The Act entails making good of any structural defect or any other defect in the workmanship, quality or provision of services by the developer for a period of five years by the allottee from the date of handing over possession within thirty days.

Issues for discussion
  • This is likely to be a contentious issue between the structural engineer and developer. Who will decide whether a "defect" is due to structural design fault or poor construction?
  • Is defect defined as a "visible" defect only? What happens if a subsequent enquiry demonstrates non-compliance to codes even though there is no visible defect?
  • Should the structural engineering community insist on mandatory Peer Review which should then deem the design, having been vetted, is not prima facie the cause of any defect and structural engineer will not by default beheld guilty in the event of a defect (unless a detailed enquiry points it to be the case?)?
  • What kind of Insurance should structural engineers be taking for this?
  • Is the Insurance Industry in India geared for providing such insurances?


Any other related topics on RERA brought up for discussion by SEFI members.




I once again welcome you all to this important e-conference. To participate in econference , send in your responses via Email toeconf@sefindia.org (econf@sefindia.org) (econf@sefindia.org (econf@sefindia.org)) or participate via website by visiting this link.


With best regards


Alpa Sheth
Admin SEFI
     



     



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bhsolanki
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PostPosted: Mon May 15, 2017 7:21 am    Post subject: Reply with quote

I want to participate in this E.Conf.

Bhagirath Solanki
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PostPosted: Mon May 15, 2017 7:25 am    Post subject: RERA Act is in force Now Reply with quote

RERA Act is in force Now

This Act is in force now
All such discussions should have been conducted, prior to this Act was approved
This Act falls short of requirements
This protects buyers & does not support buyers professionally
Buyers do not know, what they should do?
Act does not direct buyers how to protect their practical interests
Definition of Engineer is incomplete
Role of Engineer is undefined
Only one benefit has been earned that first time in national statute, Engineer definition has been included though defective
Structural engineer role is undefined
Engineer is structural engineer, but undefined
Now, Engineers are unable to make amendments to this law for it has been approved & notified & now enforce
Recommendations would not work for this is not a IS Code
Best solution is that first engineer should establish itself to do clashes with counter professionals
Engineers have proved to be worst community in this Nation
They are unable to fight for themselves
Only talking, writing & doing nothing else
Even, now Engineer are not serious for they have been used to beg other professional community
They shall never come up to professional level  to fight & just confer for no gains at all
Engineers cannot understand law & their implications
Just conferring for sake of conferring is meaningless
Engineers are required to teach general public first, why engineer is required on such Real Estate projects
People do not know anything about all these issues
NOIDA has allowed 4 years, just to do balance of works
What senseless this decision is made?
4 years count nothing
Engineers cannot fight for themselves & none else can fight for them
Just keep talking
Architects shall wash away engineers presence from this Act as well, for they are well organised & able to pool funds to go to courts
Engineers remain busy in calculations only & do not risk all courts petitions
I have very bad experience with Engineering community of Bharat
No free lunch is available anywhere!!!
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a.deshingkar
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PostPosted: Mon May 15, 2017 8:47 am    Post subject: Reply with quote

Suraj,

What you said is true but bit on harsh side setting a bad tone for the discussion. In my opinion, it is not the individual engineer responsible for the current situations, but mushrooming organisations as well who run parallel and do not intersect.

IEI is one of the major organisation in India, but then it takes care of more general stream of engineers. We should either have a wing of structural engineers in IEI or have a nationwide organisation providing umbrella to all practicing structural engineers. It doesn't help if we have one organisation in Delhi and another one is Mumbai.

Regarding your thought about the law is already enforced, I agree with you completely. For me the take away from the discussion should be "What the law mean to us?", "What are the changes we need to incorporate in the fees as well as overall project approach?", "Are there any grey areas which developer lobby will try to explore exposing structural engineers.

I 100% agree on your view point that we as engineers should be more visible to the general public. Small presentations in social gatherings organised by clubs, organisation can provide us good stage to do that. I know one engineer from Pune Mr. Manohar who has created such awareness in common public by his small presentation. But certainly more work is better in this aspect. We can use this platform to discuss and evolve with some good ideas to do that in long term horizon.

Anirudha
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PostPosted: Mon May 15, 2017 10:48 am    Post subject: RERA Act (The Real Estate Regulation and Development Act 2016) and its implications Reply with quote

Dear Alpaji,

Thanks for the most important topic your organisation has chosen for the e-conference.


However, the foremost issue is the mechanism of the implementation of the RERA ACT which has been vested on the State Governments, the land being a State subject. Formation of controlling and monitoring Authority by each state and then efficiency, sincerity and integrity of that Authority come next.Only 13 states have initiated actions and Maharastra is the only state which has formed such Authority. A very sorry state of affairs!!


If you ask me, SEFI should first suggest how the states should first concentrate on its functioning and how fast the states should first implement them. Structural Engineers' concern should be only one of them. SEFI.org , has gone too much ahead of the time.


Best Regards,
Dipak Bhattacharya / Delhi.


On 15 May 2017 at 12:55, suraj <forum@sefindia.org (forum@sefindia.org)> wrote:
Quote:
           RERA Act is in force Now

This Act is in force now
All such discussions should have been conducted, prior to this Act was approved
This Act falls short of requirements
This protects buyers & does not support buyers professionally
Buyers do not know, what they should do?
Act does not direct buyers how to protect their practical interests
Definition of Engineer is incomplete
Role of Engineer is undefined
Only one benefit has been earned that first time in national statute, Engineer definition has been included though defective
Structural engineer role is undefined
Engineer is structural engineer, but undefined
Now, Engineers are unable to make amendments to this law for it has been approved & notified & now enforce
Recommendations would not work for this is not a IS Code
Best solution is that first engineer should establish itself to do clashes with counter professionals
Engineers have proved to be worst community in this Nation
They are unable to fight for themselves
Only talking, writing & doing nothing else
Even, now Engineer are not serious for they have been used to beg other professional community
They shall never come up to professional level to fight & just confer for no gains at all
Engineers cannot understand law & their implications
Just conferring for sake of conferring is meaningless
Engineers are required to teach general public first, why engineer is required on such Real Estate projects
People do not know anything about all these issues
NOIDA has allowed 4 years, just to do balance of works
What senseless this decision is made?
4 years count nothing
Engineers cannot fight for themselves & none else can fight for them
Just keep talking
Architects shall wash away engineers presence from this Act as well, for they are well organised & able to pool funds to go to courts
Engineers remain busy in calculations only & do not risk all courts petitions
I have very bad experience with Engineering community of Bharat
No free lunch is available anywhere!!!
     



     


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PostPosted: Mon May 15, 2017 12:00 pm    Post subject: RERA Act (The Real Estate Regulation and Development Act 2016) and its implications Reply with quote

Dear Alpa
I think the topic picked up by SEFI is indeed very relevant and you have given great pointers for a start. In addition to what you’ve mentioned, there are a few more points that I would like to raise:
<![if !supportLists]> <![endif]>There is no mention of what is a mandate for the builder/structural engineer/Peer reviewer when the provisions of relevant BIS Codes undergo major revisions.(like 13920 and 1893 and NDMA Hospital Guidelines, and not to forget the Draft of 10936 for Tall Buildings, covering anything between 45m and 250 metres high)These changes are sometimes very significant and may require a complete review/revamp of the structural system/philosophy. The Act must acknowledge the need to have a clear cut legal mandate , in coordination with other Govt agencies , BIS etc.
<![if !supportLists]> <![endif]>The next major issue , as raised by you is that the Developer cannot change the structural design/drawings after the Project gets registered in RERA.If implemented correctly, it will surely provide a much needed relief to structural consultants, who are often redesigning the Penthouse floors on 33rd and above while the building is under construction at 32nd floor. My point here is that Structural analysis and design, even if completed before approval stage, is never submitted to our Local authorities,and, I may say this at the risk of stirring a hornet’s nest, even if they have a set of analysis and design/drawings they may not have the wherewithal to detect a change!
<![if !supportLists]> <![endif]>Another important point to be considered is, what happens in the unfortunate case of a building collapse; the hapless customers, who survive this disaster may never be able to fight a legal battle for a new flat or unite and get a new building constructed( go through the complete procedure of hiring a Consultant, getting local authority approvals, and getting the construction done through a contractor).In such a scenario, who decides the liabilities that the Structural Engineer must face .




Best Regards
Sangeeta Wij
Managing Partner
SD Engineering Consultants LLP
Vice President(North),Indian Association of Structural Engineers,
Fellow and Chartered Engineer, Institution of Engineers
H333 New Rajinder Nagar(Lower Ground Floor),
New Delhi-110060
Ph:9811776210;01145128530


From: suraj [mailto:forum@sefindia.org]
Sent: 14 May 2017 23:25
To: econf@sefindia.org
Subject: [E-CONF] Re: RERA Act (The Real Estate Regulation and Development Act 2016) and its implications



RERA Act is in force Now

This Act is in force now
All such discussions should have been conducted, prior to this Act was approved
This Act falls short of requirements
This protects buyers & does not support buyers professionally
Buyers do not know, what they should do?
Act does not direct buyers how to protect their practical interests
Definition of Engineer is incomplete
Role of Engineer is undefined
Only one benefit has been earned that first time in national statute, Engineer definition has been included though defective
Structural engineer role is undefined
Engineer is structural engineer, but undefined
Now, Engineers are unable to make amendments to this law for it has been approved & notified & now enforce
Recommendations would not work for this is not a IS Code
Best solution is that first engineer should establish itself to do clashes with counter professionals
Engineers have proved to be worst community in this Nation
They are unable to fight for themselves
Only talking, writing & doing nothing else
Even, now Engineer are not serious for they have been used to beg other professional community
They shall never come up to professional level to fight & just confer for no gains at all
Engineers cannot understand law & their implications
Just conferring for sake of conferring is meaningless
Engineers are required to teach general public first, why engineer is required on such Real Estate projects
People do not know anything about all these issues
NOIDA has allowed 4 years, just to do balance of works
What senseless this decision is made?
4 years count nothing
Engineers cannot fight for themselves & none else can fight for them
Just keep talking
Architects shall wash away engineers presence from this Act as well, for they are well organised & able to pool funds to go to courts
Engineers remain busy in calculations only & do not risk all courts petitions
I have very bad experience with Engineering community of Bharat
No free lunch is available anywhere!!!

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