Building Homes for the New Millennium

Improvements in Building and Development

The 1999/2000 year marked

a cornerstone for the Housing Authority. Under the Public Housing Development Programme (PHDP), target was set to produce 58 000 rental, home ownership, private sector participation scheme and interim housing homes for the year.

We came very close

to meeting the target with 48 500 flats

completed in the year.

Though every endeavor was made to attain the target and at the same time not to jeopardize quality, there have been some incidences on the construction side where quality had been undermined. Although the number of projects amounted to only a very small percentage of total production, this had caused serious concerns. To ensure that this would not recur, the Authority has quickly embarked on a series of quality reforms.

Quality Housing : Partnering for Change

Driving the quality reform of the construction industry and encouraging public participation in this reform, the Housing Authority published the document 涍uality Housing : Partnering for Change* on 27 January 2000 for public consultation. The document maps out the vision and strategies of the Authority, together with a number of recommendations to enhance housing quality. Public consultation took place between the end of January to the end of March 2000 eliciting almost 500 responses from the public, various organisations and the construction industry. 80% of the responses from the construction industry supported the need for reform within the industry while overall responses indicated clear support for the recommendations. Fifty proposals are now being implemented in two phases. The provision of quality services to customers, the revamping of the piling process, reinforcement of site supervision, and reforming listing and tendering practices among others, form the key areas to be covered in phase one of the programme. A multi-disciplinary task force has been formed to oversee the implementation of these recommendations, which will be reviewed at a 烢artnering conference* to be held in October 2000.

Designing Quality Homes

The Better Use of Private Sector Resources * In view of the surge in building and construction, consultant architects, engineers and quantity surveyors have been appointed in the design and site supervision for a number of our projects in the past two years. Last year, 20 979 flats were outsourced to consultants involving $98 million in consultant fees. Complementing and strengthening our own works practices, consultants were also used for inspections, site tests and factory visits.

Improving Building Design * Building design is constantly being reviewed to ensure that it meets the needs of the community and continues to improve standards of living in Hong Kong. In terms of standard blocks, Harmony rental blocks are being redesigned to address the shortfall for two and three person flats, and the model for smaller household developments is also being reviewed. Home ownership flats are being looked at, to improve their flexibility in terms of design and planning and to further enhance buildability and overall efficiency. The New Cruciform Blocks are therefore being adjusted to meet customer expectations. At the same time, the overall design of estates is also being enhanced by using non-standard features, facades, etc. to create interest and reduce monotony. In addition, to make better use of sites, enhance identity and improve townscape, opportunities will be explored to introduce site specific building block designs instead of adopting standard blocks.

Based on customer preferences for their new homes and on public consultations at our Wang Tau Hom Customer Service Centre, we will be offering 毢asic Shell* and 浣ully-fitted* options in the sale of future Home Ownership Scheme (HOS) flats in three pilot projects, scheduled for completion in 2003 and 2004. On-going customer consultations will continue in our Mock-up Centre at Fat Kwong Street, while our design teams also conduct face-to-face interviews with owners in newly completed HOS blocks to gain direct feedback.

Research and Improvement Studies * An overall research policy provides systematic research, consultancy and study of the use of materials, design improvements and alternative construction methods, to improve both the quality and productivity of our design and construction techniques and the quality of life for residents. Improvement studies have resulted in a number of innovations such as the automated refuse collection system, which will be included as a standard provision for domestic development completed from 2001. This system will greatly improve the living environment while also providing an efficient alternative to refuse collection.

Other developments include research on ready-mixed concrete and recommendations related to Government policies and operations. Recent research on the cost efficiency of structures has revealed that our standard blocks are more cost efficient than the industry norm, as we use standard design, and widespread mechanization, prefabrication and precast concrete elements. However, the research also establishes that the structural efficiencies of our blocks could be further improved. We are currently looking at various design modifications to take this further forward.

Enhancing Building Quality

Site Supervision and Quality Piling Works * To ensure the quality of our buildings, action has been taken to strengthen site supervision and to improve the standard of piling works. Final inspection work is now being carried out through the appointment of additional staff and the secondment of

consultants. Professional resident engineers also remain on site to supervise the works. Safeguarding the quality of piling works even further, the use of sonic tubes in large diameter bored piles is being extended to all new contracts and newly installed piles in existing contracts to facilitate 100% core testing if necessary. An independent consultant is also being appointed to review specifications for piling works as a top priority.

Risk Management of Contractors * Our existing practice of list and global workload capping limits have served us well in the risk management of contractors. In addition, the Building Committee decided to impose a requirement for an on-demand bond for 浤roup New Works (1)* building and foundation contracts. These bond requirements are effective for 浤roup New Works (1)* building contracts tendered from 1 September 1999 and for foundation contracts tendered from 1 January 2000.

Improving Systems and Procedures * In the procurement of materials,

a new Control List System, which classifies different building components and materials into different lists, will be used in building contracts tendered from 1 June 2000. Under the new system, emphasis and control will focus on critical components and materials such as precast concrete structural elements, panel wall partitions, tile adhesives, etc. Contractors have a wider flexibility and choice with regard to other alternative materials. Application procedures are available via the Internet and a central database has been set up to monitor the progress of all applications.

To achieve more equitable risk-sharing between the Housing Authority and contractors and to foster a culture of partnership, a package of contractual arrangements have been endorsed.

These include allowing longer

construction periods for foundation and building contracts; extending the maintenance and final measurement period of building contracts from 12 to 24 months; increasing retention money from 1% to 2% of the contract sum for contractors and nominated sub-contractors; and widening the use of engineering design, allowing for time extensions and reductions in liquidated damages for foundation contracts.

Preferential Tender Award System * The new Preferential Tender Award System, introduced for building contracts tendered-out from September 1999, takes past performance into account in the award of a tender. Contractors are shortlisted for the tendering process based on their listing status,

workload and PASS (Performance Assessment Scoring System)

scores. The tender with the highest Preferential Tender Score, based on a Price Score and Performance Score, is recommended for the project. The Price Score with a weighting of 80%, is calculated by comparing the tender sum to the lowest tender sum received while the Performance Score is taken from the latest six-month composite PASS score with deductions being made for any adverse reports received in the past 12 months.

Hand in hand with this quality initiative, a bonus scheme has also been introduced for building contracts. For projects tendered-out from September 1999, a direct monetary bonus of 0.05% of the Net Contract Sum is awarded for each point scored above the Benchmark Score. The maximum bonus is 1.0% of the Net Contract Sum or $7.5 million, whichever is the lower. This scheme will be reviewed together with the Preferential Tender Award System, 12 months after implementation.

Project Audits * Audits on the architectural, structural and building services engineering work for all consultant and in-house projects at critical milestones were introduced in April 1999. Since implementation, a number of deficiencies both in projects and systems have been identified and rectified through corrective action. These audits are proving invaluable, especially in (i) system improvements through feedback as well as periodic reviews by senior management;

(ii) maintaining the quality of project work through surprise checks on the adequacy and quality of site supervision and inspection; and (iii) alerting project teams on general and specific deficiency areas identified in the audits. Many deficiencies identified in earlier audits are now much less commonly seen.

Improving Site Safety

We are committed to raising site safety standards to amongst the best in the world. In October 1999, the Occupational and Health Safety Council began a study to shape long term site safety strategy. Subsequently, a number of short and long term initiatives were

recommended and a site safety unit has been set up to oversee implementation.

Specifically, both enforcement penalties and incentives have been strengthened. From August 1999, contractors are automatically suspended from tendering for further projects if their site safety performance is unsatisfactory. The suspension is enforced either through the Labour Department掇 suspension notices, Works Bureau Panel Hearing or through our own safety audit results. At the same time, contractors fulfilling their contractual site safety duties are rewarded with pre-fixed payments under the Pay for Safety Scheme, implemented in January 2000. Additionally, we are promoting site safety by implementing a strategic three-year safety campaign which commenced in 2000.

Protecting the Environment

With the growing need to preserve and sustain the environment and acutely aware of the wide reaching effects of our building activities, we have taken a proactive stand in our care and protection of the environment. During the year, we established both an Environmental Policy Statement and an Environ-mental Management System. The System now governs our planning, implementation, auditing and review of projects to meet environmental objectives. We have also taken an active role in the development of the Hong Kong Building Environmental Assessment Method - HK BEAM (Residential), which provides an independent and objective assessment of the environmental performance of a building掇 development. The system aims to ensure that the environment will not suffer because of the project. In line with objectives set in our annual Corporate Plan, two of our projects are undergoing HK BEAM (Residential) pilot assessment. As at July 2000, both the three Concord Blocks in Shatin and the three New Harmony Blocks in Fanling obtained a provisional rating of 浽ood* from the Centre of Environmental Technology.

While all our housing projects fully meet statutory requirements, we continue with design innovations to improve the quality of life. Design improvements include: the

use of noise barriers and architectural features to reduce noise, increased natural lighting, environmentally friendly refrigerants and waste reduction measures. Other achievements include certified compliance with the Code of Practice for energy efficient lighting installations in our New Harmony blocks and the use of alternative waterproofing materials in place of asphalt.

Our widespread use of large panel formwork and precast concrete in construction, continue to save timber and reduce waste. On site, initiatives also include the management and control of waste, dust control, the handling of dangerous goods and the preservation of trees. A trip ticket system is also in place to ensure the proper disposal of construction and demolition material in designated public

fills or landfills. The preparation of a waste management plan will

also soon become a contractual requirement for all building,

demolition or piling contracts to be tendered out from August 2000 onwards.

Major Development Programmes

We have undertaken a series of exciting developments in Ma Hang, Fanling, Un Chau Street,

Tin Shui Wai and Shek Lei.

Ma Hang is a success story in every aspect * its social contribution, its respect for the environment and the unique challenges in rebuilding Murray House.

Ma Hang

Ma Hang Village is a unique development characterized by its low rise buildings that echo the splendid valley environment of its prime waterfront location at Stanley on Hong Kong Island.

Phase 1 was completed in 1994 rehousing almost 600 eligible families from the former squatter village. This development in turn permitted the major clearance, to make way for phases 2 and 3 of the project. With the completion of Phase 2 and the highly popular Stanley Plaza shopping centre rounding off the development, Ma Hang Village has been reborn.

As well as providing social continuity and much improved living standards, Ma Hang boasts a number of other achievements. Among these, the majority of the mature trees in the area have been preserved and carefully integrated with the non-standard building formats. A stream has been recreated and a splendid 洖ragon* retaining wall snakes alongside. Both the Kwun Yin and the Tin Hau Temples have been preserved with the latter basking in renewed splendour as its new Fung Shui lane opens to the sea. Behind the Village Square and the temple, a village school is pleasingly sited whilst Murray House, moved stone by stone from its previous location in Central, now adorns the waterfront.

Ma Hang is a success story in every aspect * its social contribution, its respect for the environment and the unique challenges in rebuilding Murray House. The residents, the general public as well as Hong Kong掇 visitors have all gained from this major development.

Fanling Area 49A

During the year, the Fanling Area 49A development was completed adding an additional 2 391 rental and 1 280 HOS flats to Hong Kong掇 housing portfolio. In line with our customer-focused philosophy, every effort has been made to ensure attractive surroundings and a quality lifestyle for residents.

A feature of particular interest is the recessed light fountain by the 6 700 square metre commercial centre. Light is fed to the fountain through underground optical fibres, creating a kaleidoscope of light, colour and shape underneath glass. This feature attracts many visitors and is particularly popular with the children, who enjoy running over the constantly changing underfoot display.

Un Chau Street Estate Phase 3

This development is located in Cheung Sha Wan and is one of our recently completed urban renewal projects. The site was previously occupied by an aging public housing estate, which is being redeveloped into a new residential neighbourhood consisting of public resting areas, a shopping centre as well as a Housing for Senior Citizens complex. The development is close to the Cheung Sha Wan MTR and is easily accessible. The two-storey shopping centre uses linear planning to maximize frontage on Un Chau Street, to echo the shop environment on the street. Glazed atriums at both ends form inviting gateways to the shopping centre. They are joined by a central arcade and a footbridge for easy access to the residential blocks. The centre also acts as a noise barrier for the residential areas of the development. The Housing for Senior Citizens complex is located on top of the shopping centre, with all units circling three internal courtyards. Designed as a 涄ommunity*, the complex creates an environmentally-friendly retreat away from the noise and bustle of the city.

Tin Shui Wai Area

More than 13 000 flats were completed in Tin Shui Wai in late 1999 and early 2000 and handed over to customers within a very short period. To enhance customers* satisfaction, a concerted communications programme was carried out, including the establishment of a customer hotline and a customer service team to handle emergency enquiries and feedback from customers. Close liaison among site staff, estate management and contractors also enabled the rapid rectification of defects. As a result of the joint efforts of everyone concerned, about 80% of the defects list was cleared within 14 days.

Shek Lei Shopping Centre

Phase 2 of the Shek Lei Shopping Centre is centrally located on a prominent site abutting Wai Kek Street and Tai Loong Street, with pedestrian links to the residential areas of the estate. The centre consists of a total shop space of 7 110 square metres, 156 carparks and 3 rooftop tennis courts. Taking advantage of the site topography and its 15-metre difference in levels, the public transport interchange, taxi drive and commercial carparks are provided on separate floors, each with their own entrances and exits. The shopping centre is dominated by a full height atrium providing visual links to the different shop levels. Other features include the tower of advertising panels, a pedestrian bridge to the Phase 1 shops and marketplace, as well as the landscaped terraces in the adjoining domestic blocks.