What is the HOTO Process and Why is it Important for RWAs?
HOTO process or handover takeover are the same terms. Whenever you buy an apartment, you inspect the quality of the house and check the ownership papers of the property. The same way whenever any Residential Welfare Society (RWA) takes over a housing society from a builder, it ensures the quality of the common areas, building structures and documentation of the assets.
How does the HOTO Process Work?
The HOTO process consists of HOTO audit where an external HOTO Audit agency collects the list of common areas and amenities from the builder and prepares their Inspection plan.
Each builder commits some amenities in their brochure. Therefore, once the apartment project gets complete, they handover the apartment complex to residents. Residents engage one external audit agency, which conducts HOTO audit on behalf of RWA.
This agency prepares work breakdown structures and sets a timeline to complete audits of each activity. Then the audit starts in a phased manner where all compliance related classifications and clarifications are recorded. Once the HOTO audit gets over, the external HOTO agency shares their understandings with the builders, with an intention to rectify the snags and shortcomings.
What are the Components of the HOTO Process?
The main components of HOTO Process are like this:
● Facility’s Quality Audit: Where HOTO conducting agency ensures that all the installations are done properly
● Facility’s Design Audit: The agency checks for the adequacy of the provisions
● Documentation Audit: Makes sure that builder hands over all the documents
● AMC advisory: Makes sure that all the required Annual Maintenance Contract (AMC) are in place and covering the crucial aspects.
Why HOTO Process is Important
Each builder specifies some features and amenities regarding the apartment complex in their brochure. While a builder starts building a new project, they engage an Architect, plumbing consultant, Electrical consultant, Firefighting consultant, and other specialists to carry out the work as per written commitment of the builder.
During the handover takeover (HOTO) process, the RWA must ensure that all the construction, layout and operations are as per the specifications and abide by the government standards and best of industry practices. As a result, the HOTO process is initiated.
During the HOTO process, a quality audit highlights the cases (if any) of poor-quality work that is taken over by RWA from the builder. If RWA takes over poor-quality work, RWA would have to bear the cost of rectifications, if any, else this cost becomes the responsibility of the builder.
Steps to Ensure Smooth Handover of Society from Builder
Till now we understand, the resident welfare association (RWA) takes the handover of society from builders. But , apart from formulation of RWA, there are other significant steps to ensure a seamless takeover process.
1. Documentation Hanover
Once RWA is formed, builders handover documents to them. As RWA handles legal and administrative affairs of society, therefore they must have all necessary certificates in their possession. These certificates can be occupancy certificates (OC), NOC from concerned departments like fire department, water department, pollution department etc. Apart from NOC, builder also need to handover original certificates, transfer utility connection and documents like registration documents, Audited accounts, Tax-related documents, property insurance papers, various contract documents with third party vendors, car parking allocation records, architectural and structural drawings, AMC documents of services like lifts, generator and transformers.
The list doesn’t stop here, there are several other documents also which are crucial and have futuristic relevance. Your hired facility management company can help by scanning the legalities of all documents.
2. Snagging and Transition
Engaged facility management company will check possible leakage at the swimming pool, kitchen, bathroom and other possible areas. They also check the working of STP, fire fighting system etc.
3. Maintenance Charges:
RWA fixes the maintenance changes. Here, the facility management company suggests an accountant and procedure to further manage society’s maintenance charges.
4. Amenities:
Facility Management company makes sure that the builder provides all amenities as per the agreement.
5. Creation of a Resident Manual:
The Resident Manual is a detailed set of guidelines that all the residents of the building must adhere to. This manual covers details regarding maintenance charges, payments process, funds allocation, clubhouse management, timings for external vendors to work in case of fit out work, parking rules, etc. Facility Management company makes sure that each member of the RWA receives a copy of this manual.
What are the Different aspects of Quality Audit?
Quality Audit comprises of two aspects:
Let’s look at a comprehensive handover checklist that you need to cover in this process.
The first point to note is that every housing society has some common areas and as per the RERA (Real Estate Regulation and Development Act) the builder is accountable for giving basic society maintenance services to the residents; these charges though quite feasible are billed to the residents.
1. Civil Engineering aspects
All the workmanship of basic constructions and finishing items falls under civil engineering aspects. For Instance, basements, podiums, basements, parking lots are checked for water seepage, cracks, and damages etc.
Apart from this - clubhouse, towers, swimming pool, Diesel Generator (DG) Rooms, Sewage Treatment Plant (STP), Terraces including overhead water tanks (OHT), rain harvesting systems, waterproofing, pathways, drains, play areas, lobbies, stairways etc. need to be checked thoroughly.
2. MEP (Mechanical, Electrical & Plumbing) aspects
MEP aspects include checking of electrical, plumbing, and mechanical workmanship to confirm they are abiding by governmental norms and safe from any futuristic mishaps.
For instance, during one quality audit, we noticed maintenance flaws in transformers, which could have caused fire and property loss due to failure in the cooling oil system.
Also Read: Top 10 Critical Questions Every Facility Audit Must Address
How can Tuskers India Help?
Tuskers India is a reputed Integrated management company in Gurgaon. We have a team of industry expert professionals that undertakes quality audit and HOTO process services for resident welfare associations (RWA).
To know more about our HOTO process and services, you can reach us here
