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1. New rules to target shoddy builders

1. New rules to target shoddy builders
NG KANG-CHUNG, SCMP Sep 16, 2002

Tough new rules on government-funded projects designed to weed out shoddy sub-contractors are expected to come into force before the end of the year, following a string of high-profile building scandals.

Under the voluntary scheme, sub-contractors will be asked to submit evidence of their track records, management history and financial details to be registered on a list recognised by the industry. Only those on the list will be able to be hired for government projects.

Widely blamed for poor building quality in Hong Kong, sub-contracting has been one of the major areas under review by the Provisional Construction Industry Co-ordination Board.

The board was set up last September to follow up on recommendations put forward earlier in the year by a Construction Industry Review Committee.

The review was prompted after a spate of building scandals at Housing Authority sites two years ago.

Choi Chun-wa, a member of the board's working group on the management of sub-contracting, said the scheme was expected to be in place by the end of the year to include the first register of sub-contractors. "The scheme is not aimed at forcing out small sub-contractors. We're only aiming at those sub-standard, so-called briefcase [one-man] companies, which only play as middlemen and make money by sub-contracting out entire projects," said Mr Choi, also chairman of the Construction Industry Employees General Union.

Bidders for government projects will be required to submit a sub-contractor management plan as a condition of tender, according to the plans.

The successful bidder, or the main contractor, will also be required to:

Ensure his sub-contractors not to sub-contract all of the works assigned to them;

Submit reports quarterly on the monitoring of sub-contractors;

Hire its own staff to monitor the site management and supervise sub-contracting works.

The scheme is expected to be managed by the provisional board and will be funded by taxing sub-contractors.

According to initial ideas, sub-contractors will have to re-register every two years.

Guidelines will also be issued on sub-contracting practice.

The provisional board, formerly headed by the now Secretary for Commerce, Industry and Technology, Henry Tang Ying-yen, is expected to meet on Friday to appoint a new chairman and to discuss proposals.

It has been without a chairman since July when Mr Tang took up his position.