Quality Housing Consultative Document

Chapter 1 : The Challenges Ahead

1.1 The construction industry has been the locomotive of Hong Kong's economic and social development. It has provided the city with a world-class infrastructure thus enabling it to develop and prosper. It has assisted the Housing Authority (HA) in providing over 900,000 public housing units which accommodate nearly half of Hong Kong's population. These achievements have not only won worldwide recognition, but have also laid down a solid foundation for Hong Kong to meet the challenges of the new millennium.

1.2 In 1998, the construction industry employed 320,000 people, nearly 10% of Hong Kong's total workforce. It contributed 6% to Hong Kong's Gross Domestic Product. Looking ahead, it is clear that the industry will continue to play a vital role in maintaining Hong Kong as world-class metropolitan city. In the coming decade, amongst much other infrastructure, it will help us to build -

new housing for an increasing population.
a series of new strategic rail and road networks, including the West Rail, new extensions to the Mass Transit Railway
modern community and social facilities which will enrich our livelihood
new enhancements to the city's economic attractions, including the Science Park, Cyberport and Disneyland

Maintaining a modernized and efficient construction industry is thus crucial for sustaining our continuing development.

Meeting the Quality Challenge

1.3 Whatever our success, there is always room for improvement. Although the construction industry has assisted Hong Kong to deliver many large complex projects, its performance in delivering quality housing has been less promising. There has been growing dissatisfaction amongst stakeholders ^{^{Note 1}} on building quality. Recently, poor workmanship in some public housing projects has aroused much public concern. In a few instances, the quality problems were associated with piling works which could have undermined structural safety. This is not acceptable. The HA is determined to enhance the quality of public housing in Hong Kong.

^{^{Note 1}}

Stakeholders in this document generally refer to all those involved in housing production, including : the HA, the HD, contractors, consultants, workers, suppliers, training authorities, professional institutes and trade associations, tenants and owners

1.4 Indeed, other countries have carried out similar reviews to uplift the quality and the competitiveness of their construction industry. For example, in the United Kingdom, a Construction Task Force headed by Sir John Egan was established to examine means to modernize the operations of the construction industry. The Task Force published their findings in a report entitled "Rethinking Construction" in 1998. Similarly, in Singapore, a Construction Manpower 21 Committee was set up in May 1998 to address the problems in its own construction industry. The Committee published its recommendations in a report entitled "Construction 21" recently. Hong Kong is therefore not alone in meeting this building quality challenge.

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