Chapter 5 : Assuring Product Quality 5.1 The partnering framework that exists at the strategic level will provide an environment conducive to the delivery of quality buildings. Within this framework, we must also develop an effective supervision system to ensure that quality output is delivered at the project level. Quality assurance is thus a major target throughout the construction, completion and handover stages. In this chapter, we will elaborate the HA's initiatives on quality monitoring, site supervision, third-party audit, defect rectification and use of guarantees. Indeed, quality housing should also start with good designs and improving buildability which we will explain our initiatives in greater details under Chapter 7. 5.2 Minute and continuous supervision at every stage and step of the housing construction process by the HA/HD is unrealistic and would be highly inefficient. With the partnering arrangements described in the last chapter, it should also be unnecessary. Instead we must have an effective and focused quality monitoring system, including, three key elements, namely : benchmarking, milestone monitoring, and quality supervision plans. 5.3 Benchmarking is a crucial step in defining the acceptance standard of a project. It translates contract specifications into physically and visually accessible standards for appreciation and adherence amongst contractors, customers, workers and supervisory staff. It has always been the HA policy that sample flats built at construction sites should represent the minimum acceptance standard for all projects. In response to the suggestion of contractors that there should be a clearer indication of our quality benchmark, we intend to identify "designated sample flats" from construction sites to provide realistic acceptance benchmarks for contractors in submitting tenders and to follow during construction. We will make sure that sample flats in each project are clearly identified and accessible to all site staff at all times. We also intend to produce video tapes or CD ROM on building methods/installation procedures to strengthen contractors and workers' awareness of desirable working procedures. These will cover critical items, such as plastering, tiling, concrete finishes, painting, metal work and plumbing. We will liaise with the Hong Kong Construction Association (HKCA) and the Construction Industry Training Association (CITA) on this. 5.4 As construction is a lengthy process, we must also establish an effective progress monitoring system. We will draw up a list of milestone check-points against all critical activities to monitor contractors' progress, such as staged completion of superstructure and installation of building services. This will help contractors to rectify problems at source and hit sequential project targets on time and quality. We will consider linking up these milestone achievements to the Bonus Scheme, contract payments and performance appraisal. 5.5 As the majority of construction activities are carried out on site, effective site management is crucial. In 1997, the Buildings Department introduced a Site Safety Supervision Plan under which building professionals and contractors are required to submit to the Buildings Authority a supervision plan on site safety before consent is granted. The plan specifies the minimum staffing and qualification requirements on safety supervision according to the complexity of works involved. Taking this spirit one step forward, we intend to require all contractors and consultants to submit Quality Supervision Plans at the tendering stage to set out their project management proposals. This plan will cover staff resources, including both the number and their qualifications attained, that will be deployed for project management, a tentative supervisory plan for sub-contractors and workers, and a preliminary plan to achieve building quality and site safety. With clear Quality Supervision Plans, the HA, contractors and consultants should have a more solid basis for monitoring the construction process and safeguarding building quality. 5.6 We fully recognize public concern over the importance and adequacy of site supervision. Indeed, the HD, contractors and consultants should strengthen their resources in this aspect. Specifically, we should strengthen professional input so that resident professionals will be available as field commanders to resolve site problems and to ensure that high construction standards are met at all times. Adequate and competent site supervisory staff should also help to strengthen the productivity of workers. We will strengthen on-site supervision at three levels, i.e. the HD, consultants and contractors -
5.7 Strong, dedicated and competent site supervision teams are crucial to ensure that all critical steps in the building process are carried out properly. They should tackle problems at source rather than leaving defects to be rectified at the completion stage. 5.8 As "government buildings", the HA's housing projects have been exempted from the scrutiny under the Buildings Ordinance. This however does not imply that our buildings are in any sense sub-standard. Far from it, the HA's building standards and requirements are entirely comparable and consistent with those set by the Buildings Department for private developments. 5.9 While there are no doubts that the HD staff are competent to enforce these requirements, we recognize the community's legitimate expectation that there should be an objective third-party scrutiny of our work. Hence, we have no objection to put the HA's buildings under the control of the Buildings Ordinance in the long run and will discuss with the Government on this proposed transfer. As the proposal involves vast legislative, programming and resource implications, we will need to study them carefully and take time to arrive at an amicable arrangement with the Government. In the meantime, we shall strengthen the internal audit function within the HD. 5.10 We will ensure that contractors address any defects discovered after occupation speedily without undue disturbance to tenants and owners. We will hence step up both before and after-sales services. 5.11 A number of sections of the HD are now involved in the final inspection stage for project handover. Contractors consider this plurality of checking parties tends to generate confusing messages and duplication of work. We will streamline our handover inspection procedures to minimize overlapping in inspections and establish clear acceptance authority. Our aim is to provide clear and consistent directions on defect rectification and handover standards. 5.12 Since 1998, the HA has introduced a series of measures to improve our after-sales services. We have agreed to use the project vote temporarily to rectify latent defects in advance and seek reimbursements from contractors' afterwards. Any unresolved disputes between the HA and contractors on repair responsibilities will not affect our services to customers. In addition, we have set out under contract provisions a time schedule for contractors to make good general defects. 5.13 On top of these measures, we will ask contractors to attend to defects after in-take more speedily -
5.14 The HA fully recognizes customers' legitimate expectation for quality housing. We are indeed committed to achieving this goal. To give firm quality assurance to customers, the HA will provide a 10-year structural safety guarantee for all new and existing Home Ownership Scheme (HOS) and Private Sector Participation Scheme (PSPS) developments from the date of completion. The terms and conditions of the structural guarantee will be similar to those under the Tenants Purchase Scheme Note 3. For HOS, the HA will provide the guarantee as a developer. For PSPS, we will recommend the Government requiring all PSPS developers to provide similar guarantees for new projects to be tendered out in future. For existing and uncompleted PSPS developments, the HA will undertake structural repairs for and on behalf of owners if the PSPS developers fail to repair upon the legitimate demands from owners. We will seek reimbursement for such repairs from PSPS developers so liable separately. There are altogether about 152,000 HOS and PSPS units completed between 1990 and 1999. The HA will always ensure that all new units to be sold are structurally safe. 5.15 We believe that contractors should also demonstrate both their commitment and confidence in delivering quality products. We have commissioned a consultancy study to examine the viability for contractors to provide warranties for their projects so that owners can have a direct redress channel through insurance policies secured by contractors. This arrangement will provide a third-party check on contractors' performance, as consistently poor performance attracts a higher insurance premium. The consultancy study will be completed by April 2000. 5.16 Clear-cut quality benchmarking and a reinforced supervision system should lift output quality. Our customers should also enjoy better after-occupation services from contractors under the improved guarantee and defect rectification systems.
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