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BRIEFING TO CIJC2 Feb 2005

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Background

• MND-MOM Construction Safety Review Committee to review areas where construction safety can be enhanced

• Study of practices in other countries, e.g. Hong Kong, United States

• Briefing covers two areas:• a) Regulatory Framework b) Procurement Systems

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Regulatory Framework Review

Choong Teck MinSenior Engineer

Building Engineering Division

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1. Accredited Checker for Temporary Earth-Retaining Structures

2. Review of Accredited Checker System

3. Supervision of Structural Works

Areas of Review

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1Accredited Checkerfor Temporary EarthRetaining Structures

(TERS)

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Current Practice

Design PE performsdesign

QP reviews and evaluatesadequacy of design

Construction PE supervisesconstruction

QP reviewsinstrumentation readingsand conducts siteinspection for safeexcavation

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TERS

Need for additional measures for TERS

• Uncertainties in ground conditions

• Excavation can impact surroundingproperties

• High risk - requires close monitoring

• Requires specialist knowledge andexperience

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Proposed Requirements

< 4m depth PE performs design AC performs independentcheck

4m depth ormore

PE (Geotechnical)performs design

AC(TERS) performsindependent check

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Proposed Requirements

PE (GEOTECHNICAL)

Registered by Professional Engineers Board

AC (TERS)

Registered by BCA Criteria

- PE (Geotechnical) with post-graduate degree and 5 years design/construction experience, OR - PE (Geotechnical) with 10 years design/construction experience

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Proposed Requirements

• Owner/developer (not builder) shall appointAC for TERS

• Issuance of permit to commence TERSconstruction will be granted based on

the strength of the certification of theAC(TERS)

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2Review of Accredited

Checker System

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CURRENT AC SYSTEM

• AC plays a important role in final check tominimize risk of design errors

• BCA approves plan based on strength ofAC’s certification

• Crucial that AC’s independent checkis competently done with adequateresources

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AC ORGANIZATIONS (ACO)

• ACOs required to have more staff/resources.ACOs are in better position to carry outAC checks

• Critical that complex and medium-sizedprojects should be checked by ACOsas they have highly experienced andsenior professionals

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PROPOSALS ON ACOs

BCA intends to enhance AC System as follows:

a) Reduce prescribed limit of value of building worksfor individual ACs from $10 million to $3 million

b) Enhance prerequisite for ACO registration:

Current required: 1 AC, 2PEs & 2 engrs

Proposed required: 2 ACs, 2PEs & 2 engrs

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AC SYSTEM REVIEW

Feedback sought from industry on other ways to enhance the current AC System to improve competence and quality in AC checks for structural safety

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3Supervision of

Structural Works

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Current Provisions

• Resident Engineer - No work experience required under current legislation

PROJECT COST (MILLION) MINIMUMQSS

Non-Landed Landed

$3 - $15 $6 - $30 1 COW

> $15 >$30 1 RE

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Issues with QSS

• IES/ACES feedback - developments tend to provide only 1 QSS. This is inadequate and QP unable to fulfil supervision duty effectively

• Structural safety can be compromised due to inadequate resources for supervision

• Problems cited with 1 QSS

– No backup when QSS go on leave, NS, falls sick

– No backup for supervision of critical works for long periods e.g. 24 hours concreting, night beam launching or supervision of off-site works

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PROJECT COSTQSS PROVIDED< $30 $30 - $60 $60 - $90 > $90

1 COW 50 % NA NA NA1 RE 33 % 32 % 33 % NIL1 RE + 1/2/3 COW 15 % 60 % 67 % 70 %2 RE 2 % 8 % NIL 30 %

PROJECT COSTQSS PROVIDED

< $30 $30 - $60 $60 - $90 > $90

1 COW 50 % NA NA NA

1 RE 33 % 32 % 33 % NIL

1 RE + 1/2/3 COW 15 % 60 % 67 % 70 %

2 RE 2 % 8 % NIL 30 %

Breakdown: 2004 Projects

Overall: 70% of all projects has minimum 1RE/COW

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Supervision Team

• Inadequate QSS will compromise quality of supervision and undermine safety

• Study Visit: HK Supervision System. Elaborate requirements for QSS.

• Proposal: QP to appoint supervision team in order to have adequate resources for supervision

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QP Supervision Team• Feedback sought from ACES / IES on adequate

numbers of QSS required for projects in the following categories.

Project Cost Minimum QSS forSupervision Team

< $30 million

$30 - $60 million

$60 - $90 million

> $90 million

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RE’s Work Experience

• ACES/IES Feedback: Experience of RE important, especially in larger, more complex works with safety impact

• Work experience will therefore be required for RE

• Feedback sought from ACES / IES on number of years of experience an RE should have to perform effective supervision

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Projects < $15 million

Development Project Cost

18 storeys high-rise $6.3 million

18 storeys high-rise $9.95 million

20 storeys high-rise $10 million

20 storeys high-rise $14 million

Yu Neng Primary School $13.8 million

Bendemeer Road School $11 million

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Projects < $15 million

• Currently only 1 COW provided for projects under $15 million

• Proposal amend current provisions to as follows:

Project Cost Minimum QSS

$3 - $6 million 1 COW (no change)

$6 - $15 million 1 RE

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Supervision by Builder

• Duty is implicit. Builder has to provide all resources required to build according to approved plans, including resources for supervision

• Proposal: Builder to submit supervision team to support permit application, and some details on how supervision will be performed at site

• Builder will be required to review his supervision team if his proposal appears grossly inadequate

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Review of Procurement System

Lim Jue MengSenior Manager

Procurement Policies

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Areas of Review

• Licensing of contractors

• Review of CRS– Raising financial requirements

– Raising safety requirements

• Price quality method (PQM)

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Objectives

• Ensure safety – Builders are competent and able to fulfill

statutory duties under the BC Act and related legislation

• Enhance capability & enable longer term sustainability– need to nurture better performing firms that

can deliver quality and ensure safety

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Framework of Licensing of Contractors

• Registration of Licensed Contractors comprises:– Licensed Building Contractors (LBC) – Licensed Specialist Contractors (LSC)

• Registration renewable on a periodic basis

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Framework of Licensing of Contractors

• Designated specialist works:– Piling– Earth-Retaining and Ground Stabilisation– Soil Investigation and Instrumentation– Structural Steelworks– Pre-stressed Concrete– Precast Concrete Works– Structural Strengthening

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Framework of Licensing of Contractors

• Criteria for Registration:– Experience and qualifications of personnel– Safety record– Pass examination (if needed)

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Framework of Licensing of Contractors

• Application for Registration to identify:– Approved Person (AP)

• the key decision-maker who has full financial control of firm

– Technical Controller (TC)• the key decision-maker who controls

construction work on site• responsible for supervision and execution of

works

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Framework of Licensing of Contractors

• For new construction firms – based on qualifications and experience of

AP and TC

• For existing construction firms– exemption clause being considered

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Review of CRS

• Licensing as minimum eligibility

• Raising financial requirements

• Raising safety requirements

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Licensing as Eligibility

For licensing of both building and specialist contractors :

• The higher grade firms will mostly not be affected (e.g. A & B grades in CW and L5 & L6 in CR workheads). The lowest grades will be affected unless they raise their personnel levels.

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Raising Financial Requirements

• Currently CRS uses paid up capital or net-worth

• BCA will consider other financial indicators (current liquidity ratio, net profit margin, loans to subsidiaries, cashflow balance, debt to equity ratio) and/or credit rating by third party to rank firms

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Raising Safety Requirements

• Currently only the A1 & A2 grades contractors must be certified under the OHSAS 18000.

• To extend OHSAS18000 requirement to B1 and B2 grades.

• C1 and C2 firms to have simplified safety management system with some key requirements of OHSAS 18000

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Raising Safety Requirements

• Firms with warning letter from MOM (24 demerit points within a 12-month period) will be downgraded for a year

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Price-Quality Method (PQM)

• Quality attributes are already allowed in public sector tenders

• PQM enhances the current system by formalizing quality assessment through a systematic methodology – Optimise value by awarding to the most

competent tenderer with the most economically attractive proposal

– Differentiate the better contractors from average ones

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Price-Quality Method (PQM)

• Price and quality tender evaluation models are practised in UK, Australia, Hong Kong, New Zealand, Japan, France, EU

• Studied the HK and NZ models

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Proposed PQM

• Score tenders according to pre-defined weightings for both price and quality attributes

• Uphold transparency and objectivity

• Price still higher weightage (60-80%)

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Proposed PQM

• Quality attributes include: – Past and / or ongoing projects’ performance

(timeliness, quality (CONQUAS), safety, awards etc)

– Relevant track records & past experience with agency

– Project specific proposal (resources, method statement, programme, innovations, etc)

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Proposed PQM

• Formula approach to combine price scores and quality scores– lowest price tender max price score, highest

quality tender max quality score – Tenderer with highest overall score would be

awarded the project

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Feedback from Industry

• BCA seeks feedback from the industry on the above review by 28 Feb 2005

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Thank You