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Tang Report 2001 “Construct for Excellence”

Tang Report 2001 “Construct for Excellence”. Background. Sub-standard foundation works in several public housing developments in 1999

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Tang Report 2001 “Construct for Excellence”

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  1. Tang Report 2001“Construct for Excellence”

  2. 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

  3. 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

  4. 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

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

  6. 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

  7. 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)

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

  9. 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

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

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

  12. Key Issues • Quality culture • Value in construction procurement • Professional workforce • Efficiency, innovation and productivity • Safety and environmental performance • Institutional framework

  13. Quality culture • Proactive client • Voluntary subcontractor registration scheme • Site supervision • HKHA projects subject to the Buildings Ordinance

  14. 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

  15. 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

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

  17. 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

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

  19. Future direction • 109 recommendations • Clients to lead • Compete with leading firms • Evaluate the progress in 3 yrs time HKHA “Partnering for Change” • 40 recommendations

  20. 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

  21. 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

  22. Remarks • Cost of these reforms? • Concensus about the direction? • Prescriptive • Tang Report reiterates issues from Egan Report • Recommendations met • Measure success?

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