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Tang Report 2001 “Construct for Excellence”

Tang Report 2001 “Construct for Excellence”. UK Experience. 11 reports during 1944-98 Gov’t and private clients as drivers Themes such as relationships between project stakeholders, procurement, and performance Recurring issues in subsequent reports. UK Experience (2).

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Tang Report 2001 “Construct for Excellence”

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  1. Tang Report 2001“Construct for Excellence”

  2. UK Experience • 11 reports during 1944-98 • Gov’t and private clients as drivers • Themes such as relationships between project stakeholders, procurement, and performance • Recurring issues in subsequent reports

  3. UK Experience (2) • “the more things change the more they stay the same” • Agents for change, M4I and CBPP from Egan report Industry reality: Unattractive and slow to change

  4. Background Sub-standard foundation works in a number of public housing developments in 1999 • “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

  5. 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

  6. Industry’s role in HK • 4.8% of GDP in 2001 • HKHA is the largest developer providing housing for almost 50% of residents • 1 in 10 employed in the construction industry

  7. Overseas • Egan Report (UK) 1998 • C21 (Singapore) Report 1999 • Building for Growth (Australia) 1999 • White Paper (South Africa) 1999

  8. CIRC • April 2000 • Chaired by Hon. Henry Tang to examine the construction industry’s current practices 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

  9. C21 Committee (Singapore) • May 1998 • Chaired 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)

  10. CIRC membership Main committee • 8 public and 8 private sector members Sub-committees • Gov’t bureaux and depts • Professional institutions • Trade associations

  11. C21 membership (Singapore) Steering Committee • 28 members; 2/5 private and 3/5 public sector members Working Groups • Regulatory bodies • Professional institutions • Trade associations and unions • Members of Parliament

  12. CIRC’s vision “To develop an integrated construction industry that is capable of continuous improvement towards excellence in a market-driven environment.”

  13. C21’s vision (Singapore) “To be a world class builder in the knowledge age.”

  14. Key Issues • Quality culture • Value in construction procurement • Professional workforce • Efficient, innovative and productive industry • Safety and environmental performance • New institutional framework

  15. Quality culture • Clients assisted by professionals • Voluntary to mandatory S/C registration scheme • Strengthening site supervision • Greater self-regulation

  16. 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 std form contracts

  17. Value in procurement • Cost and performance considerations in project team selection • Equitable allocation of risk in contracts • Payment systems • Management of possible disputes • Partnering

  18. Procurement in C21 • Greater integration • Design and Build • D&B friendly environment

  19. Professional workforce • ‘Soft’ skills and development of core competencies for new professionals • CPD courses mandatory for professional membership renewal • Formalized training for supervisory level staff • Registration scheme for workers • Use of direct labour

  20. Professionalism in C21 • Multi-disciplinary approach for new professionals • Continuing education / CPD programs • COP and COC for all stakeholders • Contractor licensing scheme

  21. Future direction • 109 recommendations claiming to “substantially lift the quality and cost effectiveness of the construction industry”. • Clients to lead • Evaluate progress in 3 yrs HKHA “Partnering for Change” • 40 recommendations

  22. PCICB • Sept 2001 establishment of Provisional Construction Industry Co-ordination Board • Agent for CIRC report reforms • Chaired by M.D. of Swire Properties Ltd. • 25 members (industry stakeholders) • 5 Working Groups • 18 meetings to date

  23. PCICB (2) • Develop a framework for a proposed statutory body, Construction Industry Council (CIC) • Progress on the CIRC recommendations • Documents / Guidelines on the legal framework of the CIC and voluntary S/C registration scheme

  24. Remarks • Cost of report and implementation of reforms • Mixed bag of solutions • Prescriptive • Reiterates issues from Egan Report • Measure success?

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