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BRIEFING TO CIJC 2 Feb 2005

BRIEFING TO CIJC 2 Feb 2005. 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:

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BRIEFING TO CIJC 2 Feb 2005

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  1. BRIEFING TO CIJC2 Feb 2005

  2. 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

  3. Regulatory Framework Review Choong Teck Min Senior Engineer Building Engineering Division

  4. Areas of Review 1. Accredited Checker for Temporary Earth-Retaining Structures2. Review of Accredited Checker System3. Supervision of Structural Works

  5. 1Accredited Checkerfor Temporary EarthRetaining Structures(TERS)

  6. Current Practice

  7. 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

  8. Proposed Requirements

  9. Proposed Requirements

  10. 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)

  11. 2Review of Accredited Checker System

  12. 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

  13. 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

  14. 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

  15. 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

  16. 3Supervision ofStructural Works

  17. Current Provisions • Resident Engineer - No work experience required under current legislation

  18. 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

  19. Breakdown: 2004 Projects Overall: 70% of all projects has minimum 1RE/COW

  20. 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

  21. QP Supervision Team • Feedback sought from ACES / IES on adequatenumbers of QSS required for projects in the following categories.

  22. 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

  23. Projects < $15 million

  24. Projects < $15 million • Currently only 1 COW provided for projects under $15 million • Proposal amend current provisions to as follows:

  25. 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

  26. Review of Procurement System Lim Jue Meng Senior Manager Procurement Policies

  27. Areas of Review • Licensing of contractors • Review of CRS • Raising financial requirements • Raising safety requirements • Price quality method (PQM)

  28. 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

  29. Framework of Licensing of Contractors • Registration of Licensed Contractors comprises: • Licensed Building Contractors (LBC) • Licensed Specialist Contractors (LSC) • Registration renewable on a periodic basis

  30. 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

  31. Framework of Licensing of Contractors • Criteria for Registration: • Experience and qualifications of personnel • Safety record • Pass examination (if needed)

  32. 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

  33. 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

  34. Review of CRS • Licensing as minimum eligibility • Raising financial requirements • Raising safety requirements

  35. 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.

  36. 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

  37. 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

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

  39. 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

  40. 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

  41. 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%)

  42. 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)

  43. 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

  44. Feedback from Industry • BCA seeks feedback from the industry on the above review by 28 Feb 2005

  45. Thank You

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