BCA/CSV

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BRIEFING TO CIJC
2 Feb 2005
1
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
2
Regulatory Framework Review
Choong Teck Min
Senior Engineer
Building Engineering Division
3
Areas of Review
1. Accredited Checker for Temporary
Earth-Retaining Structures
2. Review of Accredited Checker System
3. Supervision of Structural Works
4
1
Accredited Checker
for Temporary Earth
Retaining Structures
(TERS)
5
Current Practice
Design
PE performs
design
QP reviews and evaluates
adequacy of design
Construction
PE supervises
construction
QP reviews
instrumentation readings
and conducts site
inspection for safe
excavation
6
TERS
Need for additional measures for TERS
• Uncertainties in ground conditions
• Excavation can impact surrounding
properties
• High risk - requires close monitoring
• Requires specialist knowledge and
experience
7
Proposed Requirements
< 4m depth
PE performs design
AC performs independent
check
4m depth or
more
PE (Geotechnical)
performs design
AC(TERS) performs
independent check
8
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
9
Proposed Requirements
• Owner/developer (not builder) shall appoint
AC for TERS
• Issuance of permit to commence TERS
construction will be granted based on
the strength of the certification of the
AC(TERS)
10
2
Review of Accredited
Checker System
11
CURRENT AC SYSTEM
• AC plays a important role in final check to
minimize risk of design errors
• BCA approves plan based on strength of
AC’s certification
• Crucial that AC’s independent check
is competently done with adequate
resources
12
AC ORGANIZATIONS (ACO)
• ACOs required to have more staff/resources.
ACOs are in better position to carry out
AC checks
• Critical that complex and medium-sized
projects should be checked by ACOs
as they have highly experienced and
senior professionals
13
PROPOSALS ON ACOs
BCA intends to enhance AC System as follows:
a) Reduce prescribed limit of value of building works
for 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
14
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
15
3
Supervision of
Structural Works
16
Current Provisions
PROJECT COST (MILLION)
MINIMUM
QSS
Non-Landed
Landed
$3 - $15
$6 - $30
1 COW
> $15
>$30
1 RE
• Resident Engineer - No work experience
required under current legislation
17
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
18
Breakdown: 2004 Projects
Overall: 70% of all projects has minimum 1RE/COW
QSS PROVIDED
PROJECT COST
< $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 %
19
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
20
QP Supervision Team
• Feedback sought from ACES / IES on adequate
numbers of QSS required for projects in the
following categories.
Project Cost
Minimum QSS for
Supervision Team
< $30 million
$30 - $60 million
$60 - $90 million
> $90 million
21
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
22
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
23
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
24
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
25
Review of Procurement
System
Lim Jue Meng
Senior Manager
Procurement Policies
26
Areas of Review
•
Licensing of contractors
•
Review of CRS
– Raising financial requirements
– Raising safety requirements
•
Price quality method (PQM)
27
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
28
Framework of Licensing of
Contractors
• Registration of Licensed Contractors
comprises:
– Licensed Building Contractors (LBC)
– Licensed Specialist Contractors (LSC)
• Registration renewable on a periodic
basis
29
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
30
Framework of Licensing of
Contractors
• Criteria for Registration:
– Experience and qualifications of
personnel
– Safety record
– Pass examination (if needed)
31
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
32
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
33
Review of CRS
• Licensing as minimum eligibility
• Raising financial requirements
• Raising safety requirements
34
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.
35
Raising Financial Requirements
• Currently CRS uses paid up capital or networth
• 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
36
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
37
Raising Safety Requirements
• Firms with warning letter from MOM (24
demerit points within a 12-month period)
will be downgraded for a year
38
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
39
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
40
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%)
41
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)
42
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
43
Feedback from Industry
• BCA seeks feedback from the industry
on the above review by 28 Feb 2005
44
Thank You
45
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