First Report of the Select Committee
on Building Problems of Public Housing Units
January 2003

The Select Committee will make two reports on building problems of public housing units. This is the first of such reports. The First Report comprises eight volumes as follows:

Volume I
Main report and minutes of proceedings

Volumes IIA to IIG
Minutes of evidence comprising the verbatim transcripts, in their original language, of the public hearings




Volume I - Main Report



Table of Contents

ChapterPage

IIntroduction

Background1 - 2

Terms of reference of the select committee2 - 3

Membership of the Select Committee3

Areas of study and work plan4

Invitation of public views5

Practice and procedure5 - 9

Summons of witnesses10

The First Report10 - 12

IIOrganizational structure for the planning and production of public housing units

Introduction13

Provision of public housing before the establishment of the present Housing Authority

13

Establishment of the present Housing Authority

14 - 15

Composition of the Housing Authority16

Committee structure of the Housing Authority17 - 21

Housing Department22 - 25

Housing Bureau25 - 26

Interface among the various authorities involved in the planning and production of public housing

26 - 29

IIIWorking mechanism for the planning and production of public housing units

Introduction30

Public housing demand and public housing production targets

30 - 32

Causes for the production peak33 - 36

Measures to deal with production peak36 - 40

Development process of public housing40 - 51

Quality control and assurance51 - 54

IVMechanism for the production of public housing units subject to the Buildings Ordinance

Introduction55

Building works subject to the Buildings Ordinance

55 - 58

Role and working mechanism of Housing Society for the planning and production of public housing units

58 - 64

Comparison of the working mechanisms of Housing Society and Housing Authority for the production of public housing

64 - 66

VIncident No. 1 - Shatin Area 14B Phase 2

Introduction67 - 68

Management of the project68 - 69

Planning and design69 - 71

Tendering71 - 74

Subletting74 - 76

The Contractor's Project Team76 - 77

Construction77 - 109

Quality assurance and quality control109 - 122

Observations123 - 133

VIIncident No. 2 - Shek Yam Estate Phase 2

Introduction134 - 135

Planning and design135

Tendering135 - 136

Management of the project136 - 137

Construction137 - 144

Observations144 - 150

VIIIncident No. 3 - Tung Chung Area 30 Phase 3

Introduction151 - 152

Planning and design152

Tendering152 - 153

Management of the project153 - 154

Construction154 - 162

Observations163 - 168

VIIIGeneral observations

Introduction169

Planning process169 - 172

Procurement policy172 - 174

Human resources policy175 - 177

Project management178 - 182

Regulation of practices and sanctions182 - 183

Construction culture183 - 185

Organizational structure185 - 188

IXConclusions and recommendations

Introduction189

Institutional background189 - 190

Unrealistic housing production target for 2000/01

190 - 191

Onerous executive responsibilities of Building Committee

191 - 192

Inadequate performance of the role of Housing Authority as regulator of the construction of public housing

193

Ineffective staff management and deployment of human resources

194

Ineffective project management195

THE THREE INCIDENTS

(1) The Yuen Chau Kok project196 - 199

(2) The Shek Yam project199 - 201

(3) The Tung Chung project201 - 203

RECOMMENDATIONS203 - 214

Acknowledgement215

Signatures of Members of the Select Committee216 - 217

Abbreviations221 - 226




AppendicesPage

Appendix I (1)Work Plan of the Select Committee on Building Problems of Public Housing Units

229 - 230

Appendix I (2)List of Parties Invited by the Select Committee to Give Views

231

Appendix I (3)List of Parties Submitted Written Views to the Select Committee

232

Appendix I (4)Practice and Procedure of the Select Committee

233 - 240

Appendix I (5)List of Witnesses Appearing before the Select Committee to Give Evidence

241 - 247

Appendix II (1)Main Duties of Housing Authority (Since 1995)

248

Appendix II (2)Terms of Reference of Housing Authority Committees (As at mid-1997)

249 - 257

Appendix II (3)Flow Chart of Public Housing Production - In-house Projects

258 - 259

Appendix II (4)Flow Chart of Public Housing Production - Out-sourced Projects

260 - 261

Appendix II (5)Organizational Structure of Development & Construction Branch (Position as at 15 April 1997)

262

Appendix II (6)Organizational Structure of Development & Construction Branch (Position as at 24 November 1997)

263

Appendix II (7)Organizational Structure of Development & Construction Branch (Position as at 1 March 1999)

264

Appendix III (1)Production Forecasts in Housing Authority's Public Housing Development Programme (Showing the Quarterly Positions from September 1995 to December 1997)

265

Appendix III (2)Public Housing Production by Housing Authority for the Period from 1987/88 to 2000/01

266

Appendix III (3)Breakdown of the 686 Posts Created in Housing Department from 1995/96 to 2000/01

267

Appendix III (4)Breakdown of the 245 Posts Created in Works-related Branches from 1995/96 to 1996/97

268

Appendix III (5)Brief History of the Issue of Consultant Management Manual (BCM) and Related Guidance Notes

269

Appendix III (6)Standard Lead Time for Standard Domestic Blocks

270

Appendix III (7)Table 1 - Workload of Architects Handling Active In-house New Works Projects from 1995/96 to 2000/01

Table 2 - Workload of Structural Engineers Handling Active In-house New Works Projects from 1995/96 to 2000/01

271 - 272

Appendix III (8)Percentage and Number of In-house Piling Sites with Resident Engineer from 1994/95 to 1999/2000

273

Appendix III (9)Entry Qualifications for Inspector of Works Grade and Works Supervisor (Civil) in Housing Department

274 - 275

Appendix III (10)Entry Qualifications for Clerk of Works Grade and Works Supervisor (Construction) in Housing Department

276 - 277

Appendix III (11)Workload of Site Staff for Building Contracts (from 1996 to 2000)

278

Appendix III (12)Workload of Site Staff for Piling Contracts (from 1996 to 2000)

279

Appendix III (13)Implementation Progress of the 50 Quality Housing Initiatives

280 - 287

Appendix IV (1)General Approval & Consent Procedures under the Buildings Ordinance

288

Appendix IV (2)Hong Kong Housing Society - Flat Production from 1995/96 to 2000/01

289

Appendix IV (3)Governance Structure of the Hong Kong Housing Society since the Annual General Meeting held on 19 December 2000

290

Appendix IV (4)Management Structure of the Hong Kong Housing Society (as at May 2002)

291

Appendix IV (5)Hong Kong Housing Society's Main Stages in Production of Housing Units

292

Appendix V (1)Shatin Area 14B Phase 2 Site Layout Plan

293

Appendix V (2)Chronology of Important Activities Relating to Shatin Area 14B Phase 2 Piling Contract

294 - 298

Appendix V (3)Organization Chart Showing the Key Personnel Responsible for Shatin Area 14B Phase 2 Piling Contract

299

Appendix V (4)Organization Chart Showing the Key Personnel of Zen Pacific Civil Contractors Ltd. and Hui Hon Contractors Ltd. for Shatin Area 14B Phase 2 Piling Contract

300

Appendix V (5)Major Steps in Installing Large Diameter Bored Piles

301

Appendix V (6)Summary Records of Rockhead Levels

302

Appendix V (7)Summary of Inspection Time of Rockhead Levels, Founding Levels and Formed Bell-outs for Blocks D and E

303

Appendix V (8)Summary of Inspection Records on Bell-outs

304

Appendix V (9)Summary of Concreting Records for Blocks D and E

305

Appendix V (10)Summary of Results of Sonic Coring Tests for Blocks D and E Based on the Reports Submitted by Fugro Geotechnical Services (HK) Ltd

306 - 307

Appendix V (11)Summary of Chi Shing's Concrete Coring Invoices

308

Appendix VI (1)Chronology of Important Activities Relating to Stainless Steel Cladding in Shek Yam Estate Phase 2 Building Contract

309 - 312

Appendix VI (2)Organization Chart Showing the Key Personnel Responsible for Shek Yam Estate Phase 2 Building Contract

313

Appendix VII (1)Chronology of Important Activities Relating to Steel Reinforcement in Tung Chung Area 30 Phase 3 Building Contract

314 - 316

Appendix VII (2)Organization Chart Showing the Key Personnel Responsible for Tung Chung Area 30 Phase 3 Building Contract

317

Appendix VII (3)Site Plan Showing the Locations of the Steel Yards

318

Appendix VII (4)Particulars of Reinforcement Steel Bars Delivered to Site

319

Appendix VII (5)Date of Delivery and Testing of Reinforcement Steel Bars

320

Appendix VII (6)Date of Issuance of Test Reports on Reinforcement Steel Bars

321

Appendix VIII (1)Percentage of "Straightforward Papers" Requested for Discussion by the Building Committee

322

Appendix VIII (2)Key Changes which Took Place in the Housing Department at the Time of the Four Incidents

323

Lists of Written Evidence

327 - 366

Minutes of Proceedings

369 - 391


Volumes IIA to IIG - Minutes of evidence of public hearings

Table of Contents





DatePublic
Hearings
WitnessVolume

21 April 20011Mr John Anthony MILLER
Director of Housing
IIA

24 April 20012Mr John Anthony MILLER
Director of Housing
IIA

28 April 20013Mr John Anthony MILLER
Director of Housing
IIA

5 May 20014Dr Hon Rosanna WONG Yick-ming
Former Chairman
Housing Authority
IIA

8 May 20015Dr Hon Rosanna WONG Yick-ming
Former Chairman
Housing Authority
IIA

12 May 20016Mr Dominic WONG Shing-wah
Secretary for Housing
IIA

19 May 20017Mr Dominic WONG Shing-wah
Secretary for Housing
IIA

22 May 20018Mr Edward HO Sing-tin
Former Chairman
Building Committee of the Housing Authority
(1987/88 to 1995/96)
IIA

26 May 20019Mr Daniel LAM Chun
Former Chairman
Building Committee of the Housing Authority
(1996/97 to 2000/01)
IIA

5 June 200110Mrs Fanny LAW FAN Chiu-fun
Former Deputy Director/Housing Management and Works
Housing Department
IIA

9 June 200111Mr Daniel LAM Chun
Former Chairman
Building Committee of the Housing Authority
(1996/97 to 2000/01)
IIA

12 June 200112Mr WONG Chin-tao
Mr CHAU Wing-sing

Representatives of the Hong Kong Housing Department
Structural Engineers Association
IIB

16 June 200113Part I
Mr WONG Chin-tao
Mr CHAU Wing-sing

Representatives of the Hong Kong Housing Department
Structural Engineers Association
IIB

Part II
Mrs Rosa HO LOK So-fun
Mr TAM Kai-kwong

Representatives of the Hong Kong Housing Department
Architects Association
IIB

19 June 200114 Part I
Mrs Rosa HO LOK So-fun
Mr TAM Kai-kwong

Representatives of the Hong Kong Housing Department
Architects Association
IIB

Part II
Mr Stephen POON Sing-chi
Former Deputy Director/Works
Housing Department
IIB

23 June 200115Mr YUEN Tze-chu
Business Director/Commercial and Business Development
Housing Department

Mr Stephen POON Sing-chi
Former Deputy Director/Works
Housing Department
IIB

26 June 200116Mr Stephen POON Sing-chi
Former Deputy Director/Works
Housing Department
IIB

30 June 200117Mr YUEN Tze-chu
Business Director/Commercial and Business Development
Housing Department
IIB

3 July 200118Mr YUEN Tze-chu
Business Director/Commercial and Business Development
Housing Department
IIB

7 July 200119Mr YUEN Tze-chu
Business Director/Commercial and Business Development
Housing Department
IIB

The 20th to 41st hearings are in relation to Tin Shui Wai Area 31 Phase 1 project which is not covered by the First Report.
12 January 200242Part I
Mr YUEN Tze-chu
Business Director/Development
Housing Department
IIC

Part II
Mr David LEE Sai-cheung
Former Project Director/Works
Housing Department
IIC

15 January 200243Part I
Ms Cynthia SZETO Kit-fong
Project Quantity Surveyor appointed by the Housing Department
IIC

Part II
Mr Ralph CHUN Yiu-man
Project Geotechnical Engineer for Shatin Area 14B Phase 2 project
IIC

19 January 200244Mr HO Shu-kee
Contract Manager for Shatin Area 14B Phase 2 project
IIC

22 January 200245Mr Francis WONG Chi-chiu
Assistant Contract Manager for Shatin Area 14B Phase 2 project
IIC

The 46th hearing was held in camera.
29 January 200247Part I
Mr TSE Ho-kwan
Senior Clerk of Works for Shatin Area 14B Phase 2 project
IIC

Part II
Mr SUN Fu-sang
Senior Clerk of Works for Shatin Area 14B Phase 2 project
IIC

2 February 200248Mr CHAN Kui-chiu
Project Clerk of Works for Shatin Area 14B Phase 2 project
IID

5 February 200249Part I
Mr LI Kwok-sing
Assistant Clerk of Works/Project Clerk of Works
for Shatin Area 14B Phase 2 project
IID

Part II
Mr WONG Kai-wah
Assistant Clerk of Works for Shatin Area 14B Phase 2 project
IID

9 February 200250Mr CHAN Kui-chiu
Project Clerk of Works for Shatin Area 14B Phase 2 project
IID

19 February 200251Part I
Mr TANG Siu-tat
Works Supervisor I
for Shatin Area 14B Phase 2 project
IID

Part II
Mr SIT Man-wai
Works Supervisor II
for Shatin Area 14B Phase 2 project
IID

23 February 200252Mr Derek ZEN Wei-peu
Executive Director
Zen Pacific Civil Contractors Ltd
IIE

26 February 200253Part I
Mr Tommy LEUNG Wah-hing
Quality Control Engineer
for Shatin Area 14B Phase 2 project
IIE

Part II
Mr SIT Man-wai
Works Supervisor II for Shatin Area 14B Phase 2 project
IIE

The 54th hearing was held in camera.
5 March 200255Part I
Mr CHAU Muk-kan
Representative of
Chi Shing Drilling Engineering Co Ltd
IIE

Part II
Mr WONG Chi-ming
Representative of
C M Wong & Associates Ltd
IIE

9 March 200256Mr LI Kwok-sing
Assistant Clerk of Works/
Project Clerk of Works
for Shatin Area 14B Phase 2 project
IIE

The 57th hearing was held in camera.
13 April 200258Part I
Mr MAN Chai-wah
Assistant General Manager Hung Fung Engineering Limited
IIF

Part II
Mr CHENG Tak-wai
Assistant Project Manager in the Purchase Department of Hung Fung Engineering Limited
IIF

16 April 200259Part I
Mr AU Chun-kuen
Site Agent
China State Construction Engineering Corporation
IIF

Part II
Ms Hanna HSU Yu-ming
Representative of
Dennis Lau & Ng Chun Man Architects & Engineers (HK) Ltd
IIF

20 April 200260Mr KU Chun-lung
Project Clerk of Works
for Shek Yam Estate Phase 2 project
IIF

23 April 200261 Mr CHAN Nap-ming
Project Manager
for Shek Yam Estate Phase 2 project

Mr CHEUNG Kun-sing
Deputy Project Manager
for Shek Yam Estate Phase 2 project
IIF

The 62nd hearing was held in camera.
4 May 200263Mr HA Siu-wah
Project Clerk of Works
for Tung Chung Area 30 Phase 3 project
IIF

7 May 200264Part I
Mr CHAN Siu-tack
Chief Structural Engineer
for Tung Chung Area 30 Phase 3 project

Mr LING Man-kwong
Project Structural Engineer
for Tung Chung Area 30 Phase 3 project
IIF

Part II
Ms Hanna HSU Yu-ming
Representative of
Dennis Lau & Ng Chun Man Architects & Engineers (HK) Ltd
IIF

11 May 200265Mr Victor SO Hing-woh
Mr Francis LAW Hoo-yan
Mr Nicolas YEUNG Shu-yan

Representatives of the Hong Kong Housing Society
IIG

14 May 200266Mr CHEUNG Hau-wai
Mr MO Kim-ming
Mr CHEUNG Kwok-ming

Representatives of the Buildings Department
IIG

18 May 200267Part I
Mr Ian BUTLER
Mr Bosco HO Hin-ngai
Mr Dominic LAM Kwong-ki

Representatives of The Association of Architectural Practices Ltd
IIG

Part II
Mr Barry WILL
Mr WONG Wah-sang

Representatives of The Hong Kong Institute of Architects
IIG

Part III
Mr Peter BERRY
IIG

25 May 200268Mr TAM Lan-po
Subcontractor of steel fixing
for Tung Chung Area 30 Phase 3 building works
IIG

28 May 200269Mr John Anthony MILLER
Director of Housing
Ms Ada FUNG Yin-suen
Assistant Director/Quality
Housing Department
IIG

The 70th hearing is in relation to Tin Shui Wai Area 31 Phase 1 project which is not covered by the First Report.