tang report 2001 “construct for excellence”. background sub-standard foundation works in several...
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![Page 1: Tang Report 2001 “Construct for Excellence”. Background Sub-standard foundation works in several public housing developments in 1999 The Secretary for](https://reader030.vdocument.in/reader030/viewer/2022032703/56649d2b5503460f94a0119f/html5/thumbnails/1.jpg)
Tang Report 2001“Construct for Excellence”
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Background
Sub-standard foundation works in several public housing developments in 1999
• The Secretary for Housing, Planning & Lands claims the incidents were “caused by criminal acts of contractors' and consultants‘, dishonest staff members, shortcomings in the HD’s project-management systems and malpractices in the industry.” Jan 22, 2003
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Background (2)
Industry problems• Non-value adding multi-layered subcontracting• Highly fragmented with adversarial culture • Labour-intensive construction methods• Inadequately trained workforce• Time, cost, quality not satisfied• High site accident rate
Depressed Economy
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Industry’s role in HK
• Since 1990’s, 5-6% of GDP
• HKHA is the largest developer providing housing for almost 50% of residents
• In 1999, 1 in 10 employed in the industry
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Overseas
• Egan Report (UK) 1998
• C21 (Singapore) Report 1999
• Building for Growth (Australia) 1999
• White Paper (South Africa) 1999
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CIRC
• April 2000• Led by Hon. Henry Tang to examine the
construction industry and propose a way forward
• 9 month consultation• Main committee, 3 Sub-committees and 1
Working Group • CIRC held 10 meetings• 33 meetings held by S-committee and WG
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C21 Committee (Singapore)
• May 1998
• Led by Secretary for Manpower to examine industry and workforce
• 15 month consultation
• Steering Committee, Working Committee, 4 Working Groups; 11 meetings by SC
• Study missions to Japan and HK
• Advice from Egan (UK)
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CIRC membership
Main committee
• 8 public and 8 private sector members
Sub-committees
• Gov’t bureaux and depts
• Professional institutions
• Trade associations
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C21 membership (Singapore)
Steering Committee• 28 members; 2/5 private and 3/5 public
sector membersWorking Groups• Regulatory bodies• Professional institutions• Trade associations and unions• Members of Parliament
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CIRC’s vision
“To develop an integrated construction industry that is capable of continuous improvement towards excellence in a market-driven environment.”
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C21’s vision (Singapore)
“To be a world class builder in the knowledge age.”
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Key Issues
• Quality culture
• Value in construction procurement
• Professional workforce
• Efficiency, innovation and productivity
• Safety and environmental performance
• Institutional framework
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Quality culture
• Proactive client
• Voluntary subcontractor registration scheme
• Site supervision
• HKHA projects subject to the Buildings Ordinance
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Quality in C21
• Enhancing buildability
• CONQUAS 21, a measure of quality
• R&D under the Nat’l Construction Research Institute (NCRI)
• Generic construction management system
• Minimize modifications to contracts
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Value in procurement
• Cost and quality performance considerations in selection of project team
• Partnering and alignment of interests
• Equitable allocation of risk in contracts
• Payment systems
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Procurement in C21
• Greater integration
• Design and Build
• D&B friendly environment
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Professional workforce
• ‘Soft’ skills and multi-disciplinary approach for new professionals
• CPD courses a pre-requisite for professional membership renewal
• Formalized training for supervisory level staff
• Registration scheme for workers
• Use of direct labour
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Professionalism in C21
• Multi-disciplinary approach for new professionals
• Continuing education / CPD programs
• COP and COC for all participants
• Contractor licensing scheme
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Future direction
• 109 recommendations
• Clients to lead
• Compete with leading firms
• Evaluate the progress in 3 yrs time
HKHA “Partnering for Change”
• 40 recommendations
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PCICB
• Sept 2001 establishment of Provisional Construction Industry Co-ordination Board
• Facilitate the reforms in the CIRC Report
• Led by M.D. of Swire Properties Ltd.
• 20 members (industry stakeholders)
• 5 Working Groups
• 10 meetings
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PCICB (2)
• Develop a framework for Construction Industry Council (CIC)
• Progress reports on the CIRC recommendations (tender assessments on a 40/60 weighting on quality/cost)
• Consultation documents on the legal framework of the CIC and operational framework of the voluntary S/C registration scheme
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Remarks
• Cost of these reforms?
• Concensus about the direction?
• Prescriptive
• Tang Report reiterates issues from Egan Report
• Recommendations met
• Measure success?