ENHANCING INTEGRITY Best Practices in Construction

1. ENHANCING INTEGRITYBest Practices in Construction By Y.Bhg. Datuk Ir. Hamzah Hasan Chief Executive, Construction Industry Development Board Malaysia 22 April 2008

2. Make Us Your Partner THE MALAYSIAN CONSTRUCTION INDUSTRY 1 GDP – 3.42% • Acts as a catalyst for and has multiplier effects to the economy • Provides employment to 800,000 workers

3. Challenges FacingThe Malaysian Construction Industry Low productivity Shoddy workmanship Substandard materials High fatality rates at work sites Make Us Your Partner 2

4. Challenges FacingThe Malaysian Construction Industry (Cont’d) Make Us Your Partner 3 • Engagement of illegal & unskilled foreign workers • Selling of construction materials beyond the government controlled price • Issue of non-payment

5. Make Us Your Partner Construction Industry Development Board of Malaysia (CIDB) 4 • Formed in 1994 • To promote & stimulate the development, improvement & expansion of the construction industry in terms of technology, business environment & human resource • Mission is to develop a world class construction industry

6. Make Us Your Partner Construction Industry Master Plan(CIMP) 5 A 10 year blueprint for a holistic development of the industry that encompasses:- • Productivity • Efficiency • Quality • Safety & Health • Environment

7. Make Us Your Partner Construction Industry Master Plan(CIMP) 6 A 10 year blueprint for a holistic development of the industry that encompasses:- • Human Resources • Research & Development • Sustainability • Information technology • Image & professionalism

8. Make Us Your Partner Best Practices 7 Areas covered:- • Training & accreditation of contractors & construction workers • Upgrading of the supervisory & project management • Health & safety, environmental issues & sustainable construction

9. Make Us Your Partner Training & Accreditation of Contractors 8 • 64,000 contractors registered with CIDB • Review the national contractor registration system to incorporate a system based on competency • Accreditation system to identify the competent contractors in both management & technical capacity • Continuous Contractor Development (CCD)

10. Make Us Your Partner Export of Services 9 • Malaysian contractors are currently active in 38 countries • Registry for contractors venturing abroad • Monitoring of performance

11. Make Us Your Partner Issues On Payment 10 • Issues of late and non-payments • Construction Industry Payment & Adjudication Act

12. Make Us Your Partner Enhancement Of Integrity 11 • Construction Industry Integrity Committee • One day awareness course on integrity as the pre-requisite for the renewal of contractor’s license

13. Make Us Your Partner Code of Ethics for Contractor 12 • Outlines the practices as well as noble conduct that must be adopted by all contractors in order to enhance the level of professionalism, integrity & accountability CODE OF ETHICS for CONTRACTOR Lembaga Pembangunan Industri Pembinaan Malaysia Tingkat 7, Grand Seasons Avenue, 72 Jalan Pahang, 53000 Kuala Lumpur

14. Make Us Your Partner Six (6) Principles 13 Principles 1 – Honesty in carrying out Responsibilities Principles 2 – Compliance with the Laws & Regulations Principles 3 – Respect for the Individual & Community

15. Make Us Your Partner Six (6) Principles (Cont’d) 14 Principles 4 – Importance of Quality, Skills & Standards Principles 5 – Importance of Safety, Health & Welfare Principles 6 – Importance of Environmental Preservation

16. Make Us Your Partner Training & Accreditation of Construction Workers 15 • Approx. 500,000 construction personnel registered with CIDB • Approx. 250,000 foreign workers registered with Home Ministry • CIDB has trained & accredited approx. 100,000 local workers

17. Make Us Your Partner Upgrading Supervisory & Project Management Skills 16 • 72,000 site supervisors & 46,000 projects managers registered with CIDB • Training & accreditation program & provided a budget of almost a million Ringgit per year.

18. Make Us Your Partner Occupational Safety & Health in Construction 17 • Master Plan for Occupational Safety & Health (2005 - 2010) to complement the efforts of the Department of Occupational Safety & Health & fatalities at construction sites • OSHMS MS 1722/OHSAS 18001:1999 certification

19. Make Us Your Partner Sustainable ConstructionAnd The Environmental 18 • Sustainable development involves balancing & integrating social, environmental & economic implications in decision making process • CIDB is currently promoting awareness on sustainable construction & good environmental practices & assisting contractors in attaining the ISO14001 Environmental Management System (EMS)

20. Make Us Your Partner Improvement of the Delivery 19 • The Government has endorsed efforts taken by Ministry of Housing & Local Government to change the status of Certificate of Fitness for Occupation to Certificate of Completion & Compliance by end of 2005.

21. Make Us Your Partner Improvement of the Delivery (Cont’d’) 20 • The objectives are to improve the delivery system, to enhance transparency and to call for higher level of integrity from both & private sectors. • The elimination of red tapes will improve the delivery system as well as minimize the opportunity for corrupt practices.

22. Make Us Your Partner Conclusion 21 • An industry that practices good governance & upholds the values of ethics & integrity can contribute towards the development & well being of our society • This plays an important role towards strengthening image & enhancing professionalism of the constructionindustry. • It is no longer just a matter of domestic efficiency; it is becoming the standard by which all nations & economies are judged

23. Make Us Your Partner THANK YOU http://www.cidb.gov.my