Strategies for Enhancing Construction Industry Productivity

Transcription

1 HKU CIVIL ENGRG. DEPT. 1 st CIC-HKU International Consultation Forum Strategies for Enhancing Construction Industry Productivity Forum Proceedings Co-organised by: Centre for Innovation in Construction and Infrastructure Development The University of Hong Kong & Construction Industry Council Special support from: Development Bureau, HKSAR Government Wang Gungwu Theatre, Graduate House The University of Hong Kong 21 March

2 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Edited by Wei Pan, Arshad Javed, Le Chen, Wenting Zhan, Yi Yang, Sam Chan, CK Mak The University of Hong Kong Hong Kong, March 2017 Contact details Centre for Innovation in Construction & Infrastructure Development Department of Civil Engineering The University of Hong Kong Pokfulam Road Hong Kong Tel: (852) Fax: (852) Acknowledgements Funding support from the Construction Industry Council is gratefully acknowledged. Forum proceedings are solely the responsibility of the authors and do not necessarily represent the official views of the Construction Industry Council. Disclaimer Any reproduction of any contents of the proceedings without permission from the Construction Industry Council and The University of Hong Kong is prohibited. CIC and HKU disclaim any liability in connection with the use of the proceedings. 1

3 Table of Contents About the Forum... 1 Organisers and Supporting Organisations... 2 Forum Rundown... 3 Executive Summary... 4 Welcome Speech... 6 Opening Speech... 9 Construction Productivity in Singapore Lessons Learnt and the Way Forward Management Factors Affecting Productivity and Performance of Public Projects Systematic Construction Industry Productivity Enhancement in Hong Kong: Drivers and Constraints Prefabricated Prefinished Volumetric Construction (PPVC): The Case of NTU2 Residential Halls Construction Productivity Enhancement: The Case of HKAA Plenary Session Closing Remarks About the CICID... 30

4 Strategies for Enhancing Construction Industry Productivity Forum Proceedings About the Forum Productivity measures the output to input ratio and provides valuable insights into the long-term potential of an economy. The construction industry makes a significant contribution to securing a sustainable future of Hong Kong. Therefore, construction industry productivity has long been an important issue for Hong Kong, which nevertheless is faced with severe challenges such as cost escalation and labour shortage. This international consultation forum is part of a study funded by the Construction Industry Council and led by The University of Hong Kong, which aims to enhance the productivity and efficiency of the Hong Kong construction industry by conducting a comprehensive and rigorous investigation on the practices, procedures and standards adopted in the industry. The forum aims to explore strategies and measures, both locally and internationally, for improving construction industry productivity in five strategic areas, namely, policy formation; regulatory requirements; planning and design; project management and administration; and site construction. The forum features renowned international and local speakers to share the state-of-the-art knowledge and practices of enhancing construction productivity at industry, project and activity levels. Dr Wei Pan Principal Investigator and Project Director 1 P a g e

5 Organisers and Supporting Organisations Organisers Special Supporter Supporting Organisations 2 P a g e

6 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Forum Rundown 8:30 9:00am Registration 9:00 9:05am Welcome Speech Mr Ka-kui Chan, Chairman, Construction Industry Council 9:05 9:15am Opening Speech Ir Chi-keung Hon, Permanent Secretary for Development (Works), Development Bureau, HKSAR Government 9:15 9:25am Photo Session 9:25 9:55am Construction Productivity in Singapore - Lessons Learnt and the Way Forward Dr John Keung, CEO, Building & Construction Authority, Singapore 9:55 10:25am Management Factors Affecting Productivity and Performance of Public Projects Prof Florence Ling, Associate Provost, National University of Singapore 10:25-10:40am Systematic Construction Industry Productivity Enhancement in Hong Kong: Drivers and Constraints Dr Wei Pan, Project Director, CICID, The University of Hong Kong 10:40 11:00am Refreshment Break 11:00 11:25am Prefabricated Prefinished Volumetric Construction (PPVC): The Case of NTU2 Residential Halls Er Siew Hoong Kit, Director (Projects), Office of Development & Facilities Management, NTU 11:25 11:50am Construction Productivity Enhancement: The Case of HKAA Ir Alex Kwan, Executive Director, Hong Kong Airport Authority 11:50 12:20pm Plenary Session Dr Keung, Prof Ling, Dr Pan, Er Siew, Ir Kwan; Moderated by Prof Sam Y.S. Chan, Associate Director, CICID, The University of Hong Kong 12:20 12:30pm Closing Remarks Prof CK Mak, Vice Chairman, CICID, The University of Hong Kong 3 P a g e

7 Executive Summary From left to right are Prof Thomas Ng, Prof Sam YS Chan, Prof SC Wong, Er Siew Hoong Kit, Mr KK Chan, Ir CK Hon, Prof Norman C. Tien, Dr John Keung, Prof Florence Ling, Ir Alex Kwan, Prof CK Mak and Dr Wei Pan On 21 March 2017, the 1 st International Consultation Forum themed Strategies for Enhancing Construction Industry Productivity was held at HKU with the purposes to validate the identified strategies and measures for enhancing construction industry productivity in Hong Kong and to disseminate the findings of the study to a wider audience of the local and overseas construction industry for synergies and sharing. The forum was co-organised by Centre for Innovation in Construction and Infrastructure Development (CICID) of The University of Hong Kong (HKU) and Construction Industry Council (CIC), with special support from Development Bureau of the HKSAR Government. A wide range of government departments and industry organisations also supported this forum. Nearly 300 participants registered and over 250 attended, from the Hong Kong SAR Government, the construction industry, institutions and academia. At the forum renowned international and local speakers shared the state-of-the-art knowledge and practices of enhancing construction productivity at industry, project and activity levels, and all engaged in the plenary session for an in-depth discussion. The forum included several sessions. First of all, Mr KK Chan, Chairman of CIC, welcomed all participants, followed by Ir CK Hon, Permanent Secretary for 4 P a g e

8 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Development (Works) of the HKSAR Government, who delivered Opening Speech to draw attention to a strategic view of construction productivity enhancement. Dr John Keung, CEO of Building and Construction Authority, Singapore introduced the policies and regulations for enhancing construction productivity in Singapore. After that, Prof Florence Ling, Associate Provost, National University of Singapore presented her research findings about management factors affecting productivity and performance of public works projects in Singapore, Hong Kong, Sydney and Beijing. Dr Wei Pan, Principal Investigator and Project Director of the study underlying the forum, disseminated research findings about the drivers for and constraints to construction productivity enhancement in Hong Kong. After the break, Er Siew Hoong Kit, Projects Director from NTU, discussed the application of prefabricated prefinished volumetric construction (PPVC) to the project of NTU2 residential halls. This was followed by the presentation given by Ir Alex Kwan, Executive Director, Hong Kong Airport Authority, who shared the experience of the HKAA with productivity enhancement. The proceedings were furthered via a plenary session moderated by Prof Sam Chan, Associate Director, CICID. Finally, Prof CK Mak, Vice Chairman, CICID gave closing remarks at the end of the Forum, to summarise the key learning points shared by the speakers and highlighted that the government should play a leading role in strategic productivity enhancement whilst the whole industry and community should enable a joint force towards a more productive industry. 5 P a g e

9 Welcome Speech (In the same order as in the forum rundown) Mr Ka-kui Chan, BBS, JP Chairman Construction Industry Council Biography Mr CHAN is the Chairman of the Construction Industry Council. He is a quantity surveyor with over 40 years of experience in the construction field. Previously, he was the Chairman of the Construction Industry Training Authority and Vice- President of Hong Kong Construction Association. Mr CHAN is a Fellow Member of the Hong Kong Institute of Surveyors. He is an Adjunct Professor of the Hong Kong Polytechnic University, an Honorary Fellow and a Court Member of the City University of Hong Kong. Mr Ka-kui Chan, Chairman of the Construction Industry Council, delivered the Welcome Speech. 6 P a g e

10 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Introduction A very good morning to Ir CK Hon (PSW), Prof Norman Tien (Dean Faculty of Engineering HKU), Prof CK Mak (VC, CICID), distinguished guests, ladies and gentlemen. It is my great pleasure to welcome you today to this International Consultation Forum co-organised by the Construction Industry Council and The University of Hong Kong. The construction industry of Hong Kong is expecting a long period of prosperity. It is anticipated that annual construction expenditure will maintain at high level of more than HK$250billion in the coming years. Manpower situation There is much for us to look forward to. However, there is also much for us to do for the society to benefit from this opportunity. According to the report recently released by Arcadis 1, the construction cost in Hong Kong is the second highest in the world. I am not sure whether we are comparing apple with apple; or if, in fact, we are comparing Singapore fried noodles with Hong Kong fried rice. In any case, it is true that the construction cost in Hong Kong has risen to a level that has affected the growth of overall economy. The high construction cost could be attributed to many factors. Two of them have brought us together this morning. The first one is labour shortage, and the other one concerns the age profile of our construction labour force. It is estimated that we are suffering from a shortage of about 10,000 skilled workers and the situation will continue for sometime. The average age of our construction workforce is 46 and over 40% of them are aged 50 or above. I feel very much home when I visit construction sites because I am always surrounded by people of my age group. Obviously, it is no comfort in our effort to bring prices down. Similarly to many developed economies, e.g. Singapore, we find it is increasingly difficult to attract young people to join the construction industry. Apparently the only solution is to improve the productivity of the present workforce, and to innovate construction methods which are less dependent on human beings. CIC s effort The Hong Kong construction industry is very keen to advance itself. The Construction Industry Council is taking a holistic review of the training model of our construction workforce. Efficiency and productivity depend on the standard and creativity of our workforce. The CIC will set up an Innovation and Technology Application Centre by end of this year to facilitate the adoption and development of innovative construction P a g e

11 technologies, such as the use of automation and robotics, exoskeletons and 3D printing for the industry. The centre will also act as a knowledge hub to showcase the latest local and international construction technologies. Digital technology has changed how we live. The Building Information Modelling (BIM) technique brings new dimensions to various aspects of the development and construction process, e.g. design, construction and facility management. The CIC has established a BIM Centre and set up an industry-wide Committee on BIM with industry leaders to spearhead the development and application of BIM in Hong Kong. The mere things that CIC have done are far from being adequate to address the critical problems currently faced by the construction industry. This morning, we are delighted to be joined by renowned speakers, who will share with us their experience and knowledge on construction productivity. In particular, I wish to welcome our colleagues from Singapore, Dr John Keung, CEO of Singapore Building and Construction Authority (BCA), Professor Florence Ling from the National University of Singapore (NUS), and Er Siew Hoong Kit to share with us the Singapore experience. We shall also have some very interesting presentations from Hong Kong delegates, Ir CK Hon (PSW), Mr Alex Kwan (ED HK AA), and Dr Wei Pan (PD, CICID-HKU). Once again, thank you very much for coming and wish you all a very fruitful forum. 8 P a g e

12 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Opening Speech Ir Chi-keung Hon, JP Permanent Secretary for Development (Works) Development Bureau, HKSAR Government Biography Ir Hon has been appointed Permanent Secretary for Development (Works) since April Ir Hon graduated from the Department of Civil Engineering, The University of Hong Kong in He also obtained a master degree in Public Administration from the University in He is a fellow of the Hong Kong Institution of Engineers and Chartered Institute of Arbitrators. Ir Hon joined the Government as an Assistant Engineer in He was promoted to Chief Engineer in 1999, to Government Engineer in 2005 and to Principal Government Engineer in He was Project Manager of Hong Kong Island and Islands Development Office of the Civil Engineering and Development Department from 2008 to He has been Director of Civil Engineering and Development from January 2011 to April 2015 before his appointment as Permanent Secretary for Development (Works). Ir Chi-keung Hon, Permanent Secretary for Development (Works), HKSAR Government, delivered the Opening Speech. 9 P a g e

13 Chairman K K Chan (Chairman of CIC), Prof Norman Tien (Dean Faculty of Engineering HKU), Professor C K Mak (Vice Chairman of CICID of HKU), distinguished guests, ladies and gentlemen. Good morning, it gives me great pleasure to join you at this International Consultation Forum organised by the Construction Industry Council (CIC) together with the Centre for Innovation in Construction and Infrastructure Development (CICID) of the University of Hong Kong. The theme of today s Forum is Strategies for Enhancing Construction Industry Productivity. I am so glad that we have experts coming from Singapore as well as the local industry leaders and practitioners gathering together to share with us their profound knowledge and also deliberate on their respective visions and strategies for tackling this important subject matter. Why Does Hong Kong Need to Enhance Productivity for the Construction Industry? Indeed, the desperate need for improving productivity of the construction industry is something very dear to heart for all of us. With our perseverance and can-do spirit, Hong Kong evolved from a small fishing village to a low-cost manufacturing base in the last century or so; and then we have reinvented ourselves to become the Asian financial centre in only a few decades time. We take pride in our world class infrastructure which we recognise as a key contributing factor underpinning the development of Hong Kong. In the past, we had accomplished quite a few engineering feats and marvels which were proven to be instrumental in improving our living environment; supporting social and economic development; and enhancing Hong Kong s long-term competitiveness. In order to sustain our economic development and uphold our position in the changing global and regional environment, we are committed to continue investing in our infrastructure in the decades to come. We have in the pipeline a number of strategic public works projects, and they include the various initiatives to boost land supply; our 10-year housing supply target of residential units; the East Lantau Metropolis, railway development for Hong Kong into the years beyond 2030; the $200 billion 10-year Hospital Development Plan; and many others. Our capital works expenditure reaches HK$85 billion this year and we anticipate that it would approach HK$100 billion in the next few years. As for our private market, it is foreseeable that the construction industry will continue flourish. Hong Kong has just been ranked number one in the world in terms of rental for Grade A premium office. There is indeed very keen demand for more office spaces here. Equally, there is also great urge for supply for residential homes and especially so from our younger generation. 10 P a g e

14 Strategies for Enhancing Construction Industry Productivity Forum Proceedings For the construction industry as a whole, the CIC s latest forecast shows that our annual construction volume in the next 10 years will remain at a high level between $240 billion and $330 billion. With such a great demand on the construction industry, there has been question on whether we can really deliver. This is particularly the case, as the Chairman of CIC has just said; we are facing the great challenge of escalating construction cost. Without doubt, the declining productivity trend of our construction activities contributes greatly to the recent upsurge of cost. High construction costs would obviously affect our financial affordability to deliver public works projects. It will also have an impact on the local property price which many would wish to keep a tighter rein on. The decline in the construction productivity is clearly reflected by the increase in manpower input per construction unit, be it an office, a school classroom or a residential flat. The decline is possibly arising from a combination of issues, like rising aspiration for better construction and living quality, enhanced occupational safety and health standards, environmental protection requirements, as well as our ageing workforce. To deliver our construction projects in a sustainable manner, we have to explore ways to improve the productivity of our construction industry. The Hong Kong Government pays special emphasis in this respect and we are actively exploring and also implementing a suite of multi-pronged measures. Government s Initiatives in Enhancing Productivity Encouraging innovation When it comes to boosting productivity, finding new ways of doing things is always the first thing to come to mind. Indeed, innovation is essential to enhancing our productivity and maintaining our competitive edge. And in this respect, we lend our full support to the CIC in establishing the Construction Innovation and Technology Application Centre. In the long run, I believe the centre will aim at establishing a global research network to promote interdisciplinary research and down to earth application on productivity enhancement. It is my sincere hope that our practitioners could make the best use of these resources which will be made available to them very soon. Improving Design and Construction Another focus is on the design and methods of construction. A few years ago, we start promoting the concept of 3S, and that is, Standardisation, Simplification and Single integrated element with a view to rationalising the manpower demand of various trades. The cutting and bending of steel reinforcement bars has been one of the trades suffering serious shortage of manpower. We have facilitated the establishment of a prefabrication yard for cutting and bending at Tsing Yi and this has started commissioning since last year. This is demonstrating benefits in reducing material wastage and also 11 P a g e

15 alleviating problem of labour shortage in handling such works on site. In order to examine more critically whether our designs are practicable when they are to be built, we will promote the concept of buildability initially for our public works projects. A highly buildable design means a design which is easy to construct with less usage of site labour and also more independence from the demand on skilled workers. We believe it will not only improve site productivity but also uplift quality of work, enhance site safety and reduce wastage. We are now devising a buildability index for Hong Kong, and this is called Buildability Evaluation System, for assessing the buildability performance of our construction projects. The system expands upon the concept of 3S to create a much more holistic approach. It will be applied throughout the design cycle extending to assessment on the management, coordination, maintenance and innovation of the project. The system would become an important reference for assessing the performance of the designers and associated tender evaluation. We aim to pilot the use of Buildability Evaluation System in our public building projects by the end of the year. On a separate front, we are also ranking support to the CICID in evaluating the feasibility and technical challenges of pursuing Modular Prefinished Volumetric Construction for high-rise building within the Hong Kong context where we have to withstand unique weather conditions like heavy rainfall and also tropical cyclones. Perhaps, a pilot project could assist us in demonstrating how this construction method could contribute to the productivity aspect. Adopting New Technology Furthermore, I think we should also make more gainful use of the state-of-the-art technology. The Building Information Model (BIM) has already been widely adopted in other parts of the world. For example, for our Mainland, the Ministry of Housing and Urban-Rural Development has announced in August last year that as from 2016 to 2020, they will strive to use BIM as one of the major tools to enhance information technology for construction industry with a view to enhancing productivity. For us, we are now actively working to mandate the application of BIM technology in the design of major Government capital works projects starting from 2018 onwards. Consultants and contractors undertaking the design and construction work for these projects will be required to use the BIM technology. Whilst the Government is gathering pace in this respect, the CIC has also been taking a leading role in setting the standards for BIM, and also taking efforts in following up with the necessary training and promotion. Along this path, we have also just heard what the Chairman has in mind his road map of taking matters forward. 12 P a g e

16 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Concluding Remarks Ladies and Gentlemen, it is said that learning is just like riding a boat upstream on a river; you can only make headway by rowing hard. To me, improving our productivity and therefore reducing our cost of construction is very much the same. Although we may still be seen as reasonably competitive within the global context, it is really high time for all stakeholders in the industry to join hand, work hard, and step up our collaborative efforts in achieving this important mission. The Government has already started taking some initial steps along the path. May I call upon all of you to put on your think cap and give us your ideas on how we can make a much bigger leap forward? And with this note, may I wish the Forum a great success and also all of you have a most enjoyable and fruitful morning. Thank you. 13 P a g e

17 Construction Productivity in Singapore Lessons Learnt and the Way Forward Dr John Keung CEO Building & Construction Authority, Singapore Biography Dr John Keung is the Chief Executive Officer of Singapore s Building and Construction Authority (BCA) since June He holds a number of Board chairmanship and membership in various organizations in the field of sustainable development and solar energy and worked in various public agencies such as the Housing & Development Board (HDB) and the Urban Redevelopment Authority in the past. Dr Keung was named one of the Top 25 Newsmakers of the Year 2013 by Engineering News Record, a US-based engineering magazine published by McGraw Hill, for his work guiding Singapore as leader in sustainable design and construction. He also received the Chairman s Award by the World Green Building Council in Dr Keung is an Adjunct Professor in the Department of Architecture, National University of Singapore (NUS) and the School of Science and Technology, SIM University (UNISIM). He also serves in a number of university advisory committees in Nanyang Technological University (NTU) and the Singapore University of Technology and Design (SUTD). Dr Keung is a Chartered Town Planner and obtained his Doctorate of Philosophy from University of Wales, UK. Dr John Keung, CEO, BCA, Singapore, delivered a keynote speech. 14 P a g e

18 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Dr Keung delivered the keynote speech and shared BCA s expereince with and initiatives for driving construction producitivity improvement in Singapore. The first intitiave introduced by the BCA was to reduce the man-year entitlement (MYE) quota, and increase foreign workers levy so as to encourage firms to substitute manpower with technology. The second initiative was to introduce minimum buildability and constructability standards through the Buildability Framework to drive labour efficient designs and construction methods. The third initiative was the introduction of incentive schemes for the private sector through the S$800million Construction Productivity and Capability Fund (CPCF). The fourth initiative was to drive BIM adoption through manadatory BIM submission for new building projects. The fifth initiative was to include productivity considerations in the public procurement framework at the expence of price. The sixth and seventh initiatives include education and professional training scholarships and sponsorships to both students and working professionals. He emphasied the importance building up capabilities within the workforce as well as changing the way we build via the adoption of Design for Manufacturing and Assembly (DfMA). He further shared that BCA has launched a Center for Lean and Virtual Construction and has published a wide spectrum of BIM Guidelines for the industry. Dr Keung highlighted that the public sector should play a leading role to generate the lead demand for the adoptiion of productivie technologies. Dr Keung suggested that the government could use a combination of regulatory and financial incentive schemes to achieve this. Active communication and feedback between government and industry is essential. He then suggested that the industry must be prepared and equipped with capabilities in line with the short and long-term demands of the industry. 15 P a g e

19 Management Factors Affecting Productivity and Performance of Public Projects Prof Florence Ling Associate Provost National University of Singapore Biography Professor Florence Y.Y. Ling from the Department of Building, School of Design and Environment (SDE) is the Associate Provost (Student Life) in the National University of Singapore. She has garnered numerous teaching, research and professional awards. Her research is in project management and international construction, focusing on performance improvement and competitiveness. She has published more than 130 international refereed journal papers. She teaches a course in Project Cost Management. She is a member of the NUS University Research Committee (URC) Expert Panel for Accountancy, Business, Humanities and Social Sciences. Professor Ling is a Fellow of the Singapore Institute of Surveyors and Valuers, and a Member of the Royal Institution of Chartered Surveyors. She contributes actively to both local and international communities. She is also a member of committees in government agencies such as Ministry of Manpower, Appeals Board (Land Acquisition), Ministry of Law, and Ministry of National Development. Prof Florence Ling, Associate Provost, National University of Singapore, delivered a keynote speech. 16 P a g e

20 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Prof Ling delivered the keynote speech based on her research findings about management factors affected productivity and performance of public projects in Beijing, Hong Kong, Singapore and Sydney. In her presentation Prof Ling focused on the comparison of management factors between Singapore and Hong Kong. First she presented her research background, followed by research methods, research findings and conclusion. Using a questionnaire survey she found that all cities were facing cost and schedule overruns for public works projects. Hong Kong, however, has a higher percentage of cost and schedule overruns as compared to any other of the cities. She also found that public works projects have significantly good quality performance. Her presentation concluded that productivity can be improved through more adaptive, flexible/adjustable contracts by adjusting uncertainties, sharing risk equitably, communicating effectively and by cultivating interpersonal relationships. 17 P a g e

21 Systematic Construction Industry Productivity Enhancement in Hong Kong: Drivers and Constraints Dr Wei Pan Project Director CICID, The University of Hong Kong Biography Dr Wei Pan is Associate Professor at Department of Civil Engineering of The University of Hong Kong (HKU) where he is also Co-Chair of Low Carbon Construction Taskforce and Associate Director of Centre for Innovation in Construction and Infrastructure Development (CICID). Dr Pan received his BSc (Distinction) in Civil Engineering from Hunan University and MSc (Distinction) and PhD in Construction Management from Loughborough University. He is also Visiting Academic at Imperial College London. Dr Pan is specialised in sustainable construction engineering and management, with research interest covering zero carbon building, prefabrication, productivity and decision making, having secured over HK$25million research fund and authored over 135 publications. He has 22 years of professional experience internationally in building design and engineering, construction project management and innovation management. He is Chartered Builder, Chartered Environmentalist, and Fellow of Higher Education Academy. Dr Wei Pan, Project Director, CICID, The University of Hong Kong, delivered a speech. 18 P a g e

22 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Dr Pan presented on the study funded by CIC and led by HKU, which aims to achieve systematic construction industry productivity enhancement in Hong Kong, with a focus on a better understanding of the drivers and constraints. He first presented on the progress of the project and highlighted the challenges faced by the Hong Kong construction industry such as ageing workforce coupled with a lack of new entrants, a shortage of skilled manpower fuelled by requirements for new skills sets and very high construction cost with alarming cost escalation. After that, Dr Pan introduced the project aim, objectives and research methods adopted for data collection. He then reported on the 1 st and 2 nd round interview-based questionnaire surveys with 52 industry experts and government officials, three project case studies and five focus group meetings with a wide range of professionals and stakeholders. Dr Pan presented the overall results of the drivers for and constraints to construction productivity enhancement in Hong Kong. He highlighted the interactive and interdependent nature of some drivers and constraints. In addition, Dr Pan shared the initial findings of 12 major strategies, 37 operational strategies and their underpinning 77 specific measures for productivity enhancement. At the end, Dr Pan called for participation of the attendees to the forum in a questionnaire survey for validating the key results. He also encouraged all participants to register and attend the 2 nd CIC-HKU International Consultation Forum themed on Shaping a More Productive Construction Industry to be held at HKU on Tuesday 25 April P a g e

23 Prefabricated Prefinished Volumetric Construction (PPVC): The Case of NTU2 Residential Halls Er Siew Hoong Kit Director (Projects) Office of Development & Facilities Management, NTU Biography Er Siew is the Project Director for construction of the Residential Halls at North Hill and Nanyang Crescent in NTU both developments adopting PPVC since 2014 to present. Prior to this portfolio, he was Divisional Director heading the building management division in ODFM-NTU. He has more than 30 years of experience in the local construction industry covering design consultancy, building management and project management of development projects, including wafer fabrication factories, commercial complexes, condominium, Changi Naval Base (Phase 1), underground cavern, marine deck of cruise center at Marina South and extensive experience in design/detailing of precast concrete. For the past 3 years, Er Siew has been sharing ODFM-NTU s hands-on practical experiences in the adoption of PPVC with government agencies, major developers, architects, engineering consultants and contractors in Singapore including construction industry leaders from Hong Kong and Japan. Major talks/seminars conducted include BCA s SCPW in Oct 2015, IES Moving into the Next Era in Jan 2016 and BCA s Experiential Workshop on Prefabricating the Future in Oct Er Siew Hoong Kit, Director (Projects), Office of Development & Facilities Management, NTU, delivered a keynote speech. 20 P a g e

24 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Er Siew delivered a speech based on the real case study of NTU2 about the adoption and application of Prefabricated Prefinished Volumetric Construction (PPVC). He first introduced the project brief followed by a detailed explanation of the processes from production to installation. He then highlighted how PPVC has helped improved the productivity and efficiency of the project. Er Siew shared that 15-20% savings were achieved in construction time, and about 25-40% savings in manpower usage, when compared with conventional construction. He also provided comparison in floor cycle between conventional construction and PPVC. Er Siew also elaborated on the challenges faced in the NTU2 project during the design and installation of PPVC. Examples of the challenges include the timeline for design for PPVC, size and weight of PPVC module vs. crane capacity, size of module and shipping cost, selection of PPVC specialist and factory, quantity of modules per shipment, scope of work and protection of modules during shipping, transportation and installation etc. Er Siew concluded that change in industry mind-set about current construction practices with the adoption of game changing technologies such as PPVC could lead to productivity gains. 21 P a g e

25 Construction Productivity Enhancement: The Case of HKAA Ir Alex Kwan Executive Director Hong Kong Airport Authority Biography Ir Alex Kwan, Executive Director (Engineering & Technology) of the Airport Authority Hong Kong holds a Master of Science degree in Environmental Engineering (with Distinction) from the Imperial College, London and a Bachelor of Science degree in Civil Engineering from the University of Hong Kong. Before joining the Airport Authority, he was the Chief Executive of AECOM Greater China. He has more than 30 years experience in the planning, design and project management of large-scale transportation and civil infrastructure projects across Asia and North America, having worked for the Civil Engineering Services Department of the Hong Kong Government and taken up senior positions in major consulting companies locally and overseas. He is a Fellow of the Hong Kong Institution of Engineers. Ir Alex Kwan, Executive Director, Hong Kong Airport Authority, delivered a keynote speech. 22 P a g e

26 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Ir Kwan delivered a speech to share the recent experiences of the Hong Kong Airport Authority (HKAA) about their approaches in enhancing construction productivity. In addition to the Three-Runway System which costs about HKD141.5 billion, HKAA is making significant investment in the next few years on other infrastructure projects. Construction productivity enhancement is a key priority to get best return for the investment. Instead of measuring some lagging KPI s e.g. completed GFA/labour-day or completed GFA/unit dollars based on outcomes, HKAA is focusing at three leading measures to ensure optimum inputs to generate optimum outputs. The three leading measures are: 1) application of advanced technology and innovation; 2) optimising the design by clearly defining user and approval authority requirements; and 3) promoting healthy tender competition and saving unnecessary contractor premiums in procurement process. In the area of technology and innovation, Ir Kwan shared HKAA s experiences in applying BIM, PPMOF (Prefabrication, Pre-assembly, Modularisation, and Off-site fabrication), and other new construction technologies e.g. horizontal directional drilling. In the area of user and approval authority requirements, a particular example is fire engineering. In procurement process, he highlighted the use of OCIP or OCWIP for all construction projects in the Airport Island, better payment schedule, Early contractor involvement (ECI), partnering approach using NEC contract. A recent example for NEC contract is an Automatic People Mover/Baggage Handling System tunnel construction. Ir Kwan also stated and gave various examples in how HKAA maximises outputs beyond the minimum design requirements in making HKIA a smart, green and resilient airport. 23 P a g e

27 Plenary Session Prof Sam Y.S. Chan Associate Director CICID, The University of Hong Kong Biography Prof Sam Chan, Associate Director of HKU Centre for Innovation in Construction & Infrastructure Development (CICID) and Adjunct Professor at the Department of Civil Engineering. Prof Chan has over 40 years experience working with clients, consultants and contractors in Hong Kong and the Mainland since graduation from the University of Hong Kong in He joined the civil service in May 1992 and was appointed Assistant Secretary in the Works Policy Unit of the Works Bureau in August 2001 on implementation of the CIRC recommendations relating to alternative procurement approaches, sustainable construction, life cycle costing, partnering, security of project payment, site supervision and project delivery. Prof Chan was posted to the Highways Department in August 2004, responsible for the planning, design and implementation of capital works projects. He served as a volunteer at the Development Bureau and provided professional advice and support to the HKSAR-funded reconstruction projects in Sichuan from January 2011 to April As a Director of the Chinese YMCA of Hong Kong and Chairman of its Property Development and Management Committee, Prof Chan provides guidance on development projects and monitors the procurement system in facilitating the delivery of the Association s services. He also provides professional advice to church organizations and NGOs in the implementation of development projects. Prof Chan is a Member of the HKIE ADR Committee and Assessor for the HKIE Civil Discipline Professional Assessment. 24 P a g e

28 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Dr John Keung, Prof Florence Ling, Dr Wei Pan, Er Siew Hoong Kit and Ir Alex Kwan joined the plenary session moderated by Prof Sam Chan. A number of questions and comments were raised by the audience. The following questions were asked during the plenary session. Q1: Your study found there is cost and schedule overrun in all cities. What is the one common reason among all these cities? Prof Ling: There are many factors affecting the cost and time overrun. Different factors are correlated with cost and schedule overruns. This study only focused on management factors. Q2: How buildability and constructability scores are measured (Qualitative or quantitative)? Dr Keung: Singapore has been practicing buildability scores for the past 15 years. Initially it was designed to encourage engineers and architects to design in a way to save labour and use more prefabrication etc. However, some builders and contractors are still using alternative methods. For example if they are asked to use system formwork they may use more labour intensive formwork. Few years ago, BCA engaged builders to seek their feedback, and (based on which) redesigned buildability scores. Over the years, BCA has built up a library of good practices and good performance of contractors in this particular area. Recently PQM has been introduced for public works projects which is used during the tendering stage. PQM includes three different components including cost, productivity and quality with different ratios. For example, previously it was 80:20. Last year in January 2016, PQM ratio has been changed to 70:20: P a g e

29 Productivity has been given 20 points for encouraging to use more efficient methods of construction. BCA will also assess the past buildability record of the contractors. The results of PQM are yet to be seen in the future. Q3: You have mentioned about better payment schedule to provide cash flow flexibility for the contractors. However we have observed especially for the public works projects that consultants are not paid for 6 to 9 months. What is your response to this? Ir Kwan: This is an issue faced by the consultants. There should be mechanism which should allow to pay a premium to consultants to finance their work. Q4: What challenges are faced to adopt PPVC in Singapore? Dr Keung: PPVC is not a new technology. It has been practiced for the past many years. Labour cost is the main reason which could drive the industry to adopt different types of technologies. Labour cost is low in Singapore. But there are other social problems in Singapore due to imported labour. There is S$800million set aside under workers levy. We emphasised that when there is demand there will be supply. Er Siew: Initially PPVC was a conceptual idea. There should have been some practices and guidelines. Dr Pan: PPVC is not new as an approach. About 15 years ago modern methods of construction (MMC) was firstly introduced in the UK by the government. In 2005 the Office of the Deputy Prime Minister and the Housing Corporation asked the National Audit Office to investigate the scope of building homes more quickly and efficiently using MMC 2. As a policy initiative, MMC was linked with public works projects funding. Thus if public clients would not adopt MMC then they will not receive public funding. Different countries are using different terms for this approach, such as off-site manufacturing, but the essence is the same, i.e. to learn from manufacturing and production. It is very important for the Hong Kong construction industry to explore this construction approach. Q5. What kind of building codes were changed to incorporate and enhance buildability scores? Dr Keung: The industry is not only required to follow the standards and code of practice, but also to apply those new methods and technologies. Even for PPVC, it might be necessary to make many changes into the building codes and standards. For example, structural, fire safety and transportation requirements etc. might need to be changed. BCA has set up a new Building Innovation Panel (BIP) 3 chaired by me. This inter-agency BIP assits firms in receiving fast multiple agency evaluation of innovative methods, processes and materials that could P a g e

30 Strategies for Enhancing Construction Industry Productivity Forum Proceedings improve construction productivity significantly. While the Panel does not dictate the rules and regulations of the relevant authorities or agencies, it indeed facilitates the assessment if the innovation can lead to 20% improvement in productivity. Being a building regulator, the BCA has demonstrated a leadership role for the adoption of new methods and technologies. Q 6. Do you have any plan to explore 3D technologies for PPVC? Dr Keung: Yes, every year BCA is organising a Singapore Construction Productivity Week (SCPW) 4. Last year in October 2016, BCA identified 35 key technologies for research and development (R&D) so as to drive construction productivity in the next lap. Under the roadmap, 35 key technologies under seven R&D clusters have been identified to enable the built environment sector to change the way the industry builds and sustains productivity improvement in the long-term. These clusters include DfMA, automated equipment and robotics, info-comm technology, BIM and Virtual Design and Construction (VDC), 3D printing, advanced construction materials and productive solutions for civil engineering works. As a start, BCA has awarded S$2million to four research projects which focus on DfMA solutions 5. However, 3D printing using concrete is still difficult. Q 7. The construction cost is very high in Hong Kong as compare to Singapore? Arcadis report shows that Singapore ranking changed from 15 in 2015 to 10 in How Hong Kong can minimise the construction cost? Dr Keung: The Hong Kong construction industry is doing very well and moving into the right direction. For example, the Hong Kong Housing Department is using VDC and BIM etc. The public sector needs to play a leading role. BIM could be used not only for conceptual design, construction and operation of the building but also for facilities management, renovation and demolition. However, it is not an easy task as the procurement methods need to be changed and the consultants are required to submit the BIM model at the very early stage. Meanwhile Hong Kong is adopting and promoting the use of the New Engineering Contract NEC3, the BCA would like to learn from Hong Kong s experience about adopting NEC contracts for public works projects. Partnering and risk sharing approach will encourage early contractor s involvement P a g e

31 Closing Remarks Prof CK Mak Vice Chairman CICID, The University of Hong Kong Biography Prof C.K. Mak joined the Hong Kong Government as an Assistant Engineer in 1976 and since then his career has been closely associated with the development of Hong Kong s railway system. As an engineer, he was in charge of a number of projects for the electrification and modernization of the Kowloon-Canton Railway. In 1990, he initiated and organized planning studies for Hong Kong s railway development. He then took part in the formulation of Hong Kong s Railway Development Strategies, which were published in 1994 and Prof Mak is a Member of the Institution of Civil Engineers, a Fellow of the Hong Kong Institution of Engineers, a Fellow of the Hong Kong Institution of Highways and Transportation, a Fellow of the Chartered Institute of Logistics and Transport, and a Senior Member of the China Railway Society. Prof CK Mak, Vice Chairman, CICID, The University of Hong Kong, delivering the Closing Remarks. 28 P a g e

32 Strategies for Enhancing Construction Industry Productivity Forum Proceedings Prof Mak thanked all speakers, summarised the presentations and emphasised the importance of knowledge sharing and learning through the forum. He highlighted the main observations of the proceedings of the forum. For example, based on Singapore experience sharing about construction productivity enhancement, the public sector should play a leading role, and there is a need to strike the balance between regulations and incentives ( carrot and stick ). Management factors affecting different cities productivity will be good reference points for Hong Kong to minimise its cost and schedule overrun. The usage of PPVC methods could help to achieve efficient delivery of projects. The Hong Kong Airport Authority is using green, smart and resilient approaches which could benefit the industry, society and environment. Prof Mak also pointed out that the industry is facing many challenges. There is an institutional change needed for improving productivity. After thanking all speakers, participants, supporting organisations and forum helpers, Prof Mak reminded participants to register for the 2 nd CIC-HKU International Consultation Forum on the theme Shaping a More Productive Construction Industry to be held at HKU on 25 April P a g e

33 About the CICID The Centre for Innovation in Construction & Infrastructure Development (CICID) was established in 2002 by the Department of Civil Engineering of The University of Hong Kong. The aim is to foster continuous improvements, while targeting excellence in the construction industry in general and infrastructure development in particular, through the development of innovative strategies and techniques. The objectives include (a) to develop an internationally recognised 'Centre of Excellence' for research, discourse and dissemination of innovations in infrastructure and construction engineering & management, and construction industry development methodologies; and (b) to encourage and support interdisciplinary research into planning, implementing and evaluating construction projects including mega-project infrastructure programmes. For more information visit Research themes Infrastructure Procurement Innovation Construction Project Procurement System Selection, Revamped Risk Management, Public Private Partnerships (including BOT, PFI, etc.), Relational Contracting (including Partnering & Alliancing), Design & Construct, Joint Venture Management, Multi-Culture Management, Consultant Selection, Contractor Selection, Sub-contractor Management, Supply Chain Integration, Performance-based Contracting. Infrastructure Management Support Systems Web-based Decision Support Systems, Value Networks, Intelligent Systems, Agent and Multi-Agent Collaborative Systems, Knowledge Management, Logistics Management, Evolutionary Computation and Design, Infrastructure Security Systems, Construction Finance and Cash flow Management, Construction Claims Management (including Time Extension Evaluation Systems) and Dispute Avoidance/Resolution. Performance Improvement Initiatives Construction Process Modelling, Optimisation and Re-engineering, Energy Modelling Quality Management, Safety Management, Productivity Enhancements, Time-Cost Optimisation, Resource Scheduling, Operational & Maintenance Systems, Life Cycle Analysis and Costing, Key Performance Indicators, Benchmarking and Performance Evaluation. Construction Technology Enhancements Sustainable Construction and Refurbishment, Low/Zero Carbon Building, Prefabricated Construction, Modular Building, BIM, Carbon Labelling, Standardisation, Technological Innovations, Technology Transfers, Technology Exchange and Diffusion. Construction Industry Development Thrusts Reviews of Overseas and Local Industry Development Strategies and Initiatives, Building Supply Chain Capacities for Sustainable Development, Formulation of Strategies and Measures for Medium and Long-term Development of Personnel, Groupings (e.g. Small & Medium Contractors) and Institutions, including Construction Organisations and Facilitating Bodies. 30 P a g e