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)

• “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

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

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

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

Overseas

• Egan Report (UK) 1998

• C21 (Singapore) Report 1999

• Building for Growth (Australia) 1999

• White Paper (South Africa) 1999

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

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)

CIRC membership

Main committee

• 8 public and 8 private sector members

Sub-committees

• Gov’t bureaux and depts

• Professional institutions

• Trade associations

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

CIRC’s vision

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

C21’s vision (Singapore)

“To be a world class builder in the knowledge age.”

Key Issues

• Quality culture

• Value in construction procurement

• Professional workforce

• Efficient, innovative and productive industry

• Safety and environmental performance

• New institutional framework

Quality culture

• Clients assisted by professionals

• Voluntary to mandatory S/C registration scheme

• Strengthening site supervision

• Greater self-regulation

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

Value in procurement

• Cost and performance considerations in project team selection

• Equitable allocation of risk in contracts

• Payment systems

• Management of possible disputes

• Partnering

Procurement in C21

• Greater integration

• Design and Build

• D&B friendly environment

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

Professionalism in C21

• Multi-disciplinary approach for new professionals

• Continuing education / CPD programs

• COP and COC for all stakeholders

• Contractor licensing scheme

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

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

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

Remarks

• Cost of report and implementation of reforms

• Mixed bag of solutions

• Prescriptive

• Reiterates issues from Egan Report

• Measure success?