What Is A ‘Handover Takeover’ (HOTO) Audit, & Why Is It So Important For RWAs?
Handover Takeover: The standard sequence of events is as follows: you buy an apartment, get it checked before moving in. And then you move in. So far, we have ensured that the purchases we have made are of high quality. But just within the four walls. What about the exterior? What about the communal spaces of your apartment complex, which you are entitled to and have paid for? When will that be confirmed and checked? What about the documentation that comes with these massive structures, as well as their warranties and perhaps guarantees?
Many firms in India now offer the specialised service of Residents’ Welfare Association (RWA) Handover Takeover (HOTO) from the builder.
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Why is a HOTO audit required?
In any new residential society – be it an apartment complex or villas – the builder generally collects a corpus fund from every owner. The reason for collecting it, is to form the Apartment Owners Association. In general parlance termed as Residents’ Welfare Association (RWA).
In many circumstances, if the builder is unable or unwilling to take the initiative, the owners create an organisation of persons or an ad hoc committee to govern the society. After some time, an ad hoc committee is formalised as a RWA under the applicable legal code.
This RWA is required because, once units are sold and people begin to move in, it becomes vital to examine the functioning and upkeep of all common facilities. Basements, gardens and facilities, lifts, generator sets, sewage treatment plant (STP), swimming pool, clubhouse, and other spaces may be included.
Handover Takeover
It is the builder’s obligation to maintain the assets and facilities before they are formally and legally transferred to the RWA through the conveyance procedure. The duty is transferred to the RWA after the handover. As a result, it is critical that when the RWA takes over from the builder, the management committee (MC), which represents the whole society, is aware that the assets are in excellent functioning order. If this technical due diligence is not performed, the RWA may be forced to spend money on upkeep and maintenance of these out-of-date facilities and assets. Aside from that, the RWA may not have gotten all of the technical paperwork required to manage the entire organisation efficiently.
What exactly is the HOTO process?
HOTO is made up of four sections.
- Quality audit of MEP and civil aspects: guarantees that all installations are completed correctly.
- MEP design audit: ensures that the provisions are adequate.
- Auditing documentation ensures that all papers are handed out.
- AMC advisory: guarantees that all necessary AMCs are in place.
What exactly is a quality audit?
The builder hires a variety of professions to design and construct a project, including an architect, plumbing consultant, electrical consultant, firefighting consultant, and so on. Based on the client’s project requirements, all, if not most, of these consultants end up providing documentation to execute on the design. All of these consultants will provide their project designs and specs. The project construction team uses these designs to build the project and then to run different systems and building services that are essential to the project. At the time of HOTO, the RWA must ensure that all teams have completed the construction and that all subsequent operations are in accordance with specifications and various governing standards such as the National Building Code (NBC) and the Bureau of Indian Standards (BIS), or, if no specific standards exist, that the best general industry practise is followed.
A quality audit consists mostly of two components:
- Civil engineering components include all areas of basic building and finishing operations.
- MEP (mechanical, electrical, and plumbing) aspects: Covers all assets essential for societal operation. Such as DG sets, STP, RWH, and so on. This involves features of firefighting as well.
The civil aspect
Essentially, all shared sectors of society have to be scrutinised.
We begin with the basements to look for any unfinished or defective construction. Cracks and damages, water seepages and humidity, and so on.
Then we look at buildings inside society, which are formally known as superstructures, such as towers, club houses, swimming pools, DG (diesel generator) rooms, and STP (sewage treatment plant). These must be inspected for craftsmanship quality both interior (lobbies, stairways, rooms, etc.) and outside for inappropriate finishing – works, cracks, humidity, and so on. These audits only apply to shared spaces; they do not apply to your own flat.
Overhead water tanks (OHT) on terraces should be checked for cracks, moisture patches, rain water leakage points, correct waterproofing, and so on.
Finally, the podium area is inspected for any issues in the paths, side drains, garden areas. Water bodies, park benches, play areas, transformer yard, organic waste converter (OWC), and other locations.
Handover Takeover: The MEP aspect
The craftsmanship and functioning of installations are checked here. It is necessary to ensure that the asset executes the work at the specified level on-site.
The electrical transformer yard is usually first, followed by the electrical panel room. Each building/tower has panel rooms and electrical shafts in each wing of the tower. These are inspected for workmanship of installation in accordance with IS codes/best industry practises, such as required earthing, proper cable dressing (proper way of laying the cables), proper tagging of cables for identification through circuit diagrams, and any missing safety devices such as ELCB/RCCB (earth leakage circuit breakers/residual current circuit breakers) that prevent accidental electrocution, among other things. While inspecting craftsmanship, keep legislative standards in mind.
If the legislative standards are not satisfied, the RWA may face harsh actions/penalties from the government. A further safety risk exists because faulty electrical workmanship might result in a fire, threatening life.
Handover Takeover
DG (diesel generator) sets are inspected for faulty connections, missing earthing, and other installation flaws in accordance with standards. What must also be tested is the operation of the auto-start feature within the specified time of a power outage. This is done to guarantee that the building does not go dark if the main supply line breaks.
Elevators and lifts are some of society’s most used but also most ignored assets. This equipment must be verified for smooth and proper functioning by halting at all needed levels, including emergency preparation. As previously stated, any violation of legislative requirements here might result in a fine from the Electrical Inspectorate, the government agency that grants lift operator licences.
An audit of a plumbing system will begin with the public water supply lines, sumps, bore wells, water treatment plant (WTP), overhead water tank (OHT) pipework, and the associated pumps. STP is a required and vital feature of every apartment complex, needing a complete inspection by specialists to guarantee proper functioning and legislative compliance. In many cultures, purified water is utilised to flush toilets. Untreated water that is directly fed into tanks, or faulty STPs that discharge untreated sewage into public sewers, can pose health risks and bring criminal charges.
Handover Takeover
In high-rise structures with a height of more than 15 metres above ground, a fire-fighting system is required. A fire-fighting system is made up of two components: 1. a fire alarm system; and 2. a firefighting system Both of these systems must be verified by specialists to guarantee appropriate installation in accordance with standards. Many apartment complexes have their fire alarm systems turned off since the systems are always malfunctioning. In some circumstances, the hose nozzle may be missing within the fire cabinet or the pipes may be disconnected. These may appear to be little oversights, but they can have catastrophic implications, including death in the event of a fire.
Many communities include facilities such as swimming pools. And these, too, must be examined for good operation of their filtration system and water purification elements.
Essentially, the complete HOTO process, of which quality audit is a component. Offers value to the entire society by assisting in the reduction of the operating budget. This occurs because the HOTO agency guarantees that the common areas and facilities are in good shape before the builder hands over the property to the RWA.
Handover Takeover: Audit of documentation
The Builder would (should have) finished building all of the common rooms and amenities according to the specifications and list in their offering document. There are papers relating to legal concerns and documents that show the legality of building (for example, Occupancy Certificate). There are several such documents that must be examined not just for their presence but also for the effectiveness of their contents. The agency performing the HOTO audit should compile a list of common places and facilities so that an inspection strategy may be developed.
This is followed by the work breakdown structure, which is followed by the audit, which includes all clarifications and compliances. Finally, a visual and annotated report will be supplied. Which should be simple to grasp not only for the builder to correct the snags and flaws. But also for the MC members, who may be laypeople. This is a thorough effort. And the RWA will have all of the paperwork required for the proper operation of the assets and other amenities. As well as maintenance and repairs.
How can a flawless HOTO procedure be ensured?
It is also crucial to know that many individuals may volunteer to undertake the audit for a fraction of the fee that a professional organisation may charge. However, one should keep in mind that these are all people, which results in numerous weak connections. A professional firm will have stability, responsibility, and extensive experience. This is why expert guidance from a professional agency is required.
Furthermore, the most, if not all, of a RWA’s office bearers are concerned with their own life and labour pro gratis. Even if they can find the time. The HOTO procedure is exceedingly hard since it incorporates several technical and firefighting specialties. As a result, there is a limited probability that RWA members have the capability or expertise to audit and collate multiple data sets.
Handover Takeover: Can the HOTO audit be performed by the facilities management company?
Many RWAs confront this quandary. Especially when the builder has their own facility management services (FMS) firm and the builder internally transfers property management to their sister concern. In such circumstances, the FMS will assert that they, too, are capable of doing the HOTO audit. What the RWA should know is that in most situations. A facility management business is hired to administer the facilities after the RWA takes ownership. The FMS may appear to be capable of carrying out the HOTO procedure. However, uncovering the flaws in a transparent manner is contrary to their own and their parent company’s interests.
Handover Takeover
Furthermore, the FMS may lack the building process experience to grasp the challenges that may arise later. It is also in their best interests to take over with as little friction with the Builder as possible so that they can begin their interaction with the RWA easily. For these reasons, hiring a third party with the requisite skills who has no conflict of interest is less expensive in the long term.
Handover Takeover: What must be examined during the HOTO audit?
As part of HOTO, it is advised that you verify the following.
- Quality control of the project’s civil engineering features.
- Quality control of the project’s MEP (mechanical, electrical, and plumbing) components.
- MEP facility design audit
- AMC recommendation for equipment and facilities.
- STP audited thoroughly.
- If necessary, an in-depth audit of any specific facility.
- All papers given over to the RWA were audited.
- Guidance on the documentation to be collected for the RWA’s future operations.
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