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

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Volume I - Main Report

Table of Contents

Chapter		Page
I	Introduction
	Background	1 - 2
	Terms of reference of the select committee	2 - 3
	Membership of the Select Committee	3
	Areas of study and work plan	4
	Invitation of public views	5
	Practice and procedure	5 - 9
	Summons of witnesses	10
	The First Report	10 - 12
II	Organizational structure for the planning and production of public housing units
	Introduction	13
	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 Authority	16
	Committee structure of the Housing Authority	17 - 21
	Housing Department	22 - 25
	Housing Bureau	25 - 26
	Interface among the various authorities involved in the planning and production of public housing	26 - 29
III	Working mechanism for the planning and production of public housing units
	Introduction	30
	Public housing demand and public housing production targets	30 - 32
	Causes for the production peak	33 - 36
	Measures to deal with production peak	36 - 40
	Development process of public housing	40 - 51
	Quality control and assurance	51 - 54
IV	Mechanism for the production of public housing units subject to the Buildings Ordinance
	Introduction	55
	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
V	Incident No. 1 - Shatin Area 14B Phase 2
	Introduction	67 - 68
	Management of the project	68 - 69
	Planning and design	69 - 71
	Tendering	71 - 74
	Subletting	74 - 76
	The Contractor's Project Team	76 - 77
	Construction	77 - 109
	Quality assurance and quality control	109 - 122
	Observations	123 - 133
VI	Incident No. 2 - Shek Yam Estate Phase 2
	Introduction	134 - 135
	Planning and design	135
	Tendering	135 - 136
	Management of the project	136 - 137
	Construction	137 - 144
	Observations	144 - 150
VII	Incident No. 3 - Tung Chung Area 30 Phase 3
	Introduction	151 - 152
	Planning and design	152
	Tendering	152 - 153
	Management of the project	153 - 154
	Construction	154 - 162
	Observations	163 - 168
VIII	General observations
	Introduction	169
	Planning process	169 - 172
	Procurement policy	172 - 174
	Human resources policy	175 - 177
	Project management	178 - 182
	Regulation of practices and sanctions	182 - 183
	Construction culture	183 - 185
	Organizational structure	185 - 188
IX	Conclusions and recommendations
	Introduction	189
	Institutional background	189 - 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 management	195
	THE THREE INCIDENTS
	(1) The Yuen Chau Kok project	196 - 199
	(2) The Shek Yam project	199 - 201
	(3) The Tung Chung project	201 - 203
	RECOMMENDATIONS	203 - 214
Acknowledgement		215
Signatures of Members of the Select Committee		216 - 217
Abbreviations		221 - 226

Appendices		Page
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

Date	Public Hearings	Witness	Volume
21 April 2001	1	Mr John Anthony MILLER Director of Housing	IIA
24 April 2001	2	Mr John Anthony MILLER Director of Housing	IIA
28 April 2001	3	Mr John Anthony MILLER Director of Housing	IIA
5 May 2001	4	Dr Hon Rosanna WONG Yick-ming Former Chairman Housing Authority	IIA
8 May 2001	5	Dr Hon Rosanna WONG Yick-ming Former Chairman Housing Authority	IIA
12 May 2001	6	Mr Dominic WONG Shing-wah Secretary for Housing	IIA
19 May 2001	7	Mr Dominic WONG Shing-wah Secretary for Housing	IIA
22 May 2001	8	Mr Edward HO Sing-tin Former Chairman Building Committee of the Housing Authority (1987/88 to 1995/96)	IIA
26 May 2001	9	Mr Daniel LAM Chun Former Chairman Building Committee of the Housing Authority (1996/97 to 2000/01)	IIA
5 June 2001	10	Mrs Fanny LAW FAN Chiu-fun Former Deputy Director/Housing Management and Works Housing Department	IIA
9 June 2001	11	Mr Daniel LAM Chun Former Chairman Building Committee of the Housing Authority (1996/97 to 2000/01)	IIA
12 June 2001	12	Mr WONG Chin-tao Mr CHAU Wing-sing Representatives of the Hong Kong Housing Department Structural Engineers Association	IIB
16 June 2001	13	Part 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 2001	14	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 2001	15	Mr 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 2001	16	Mr Stephen POON Sing-chi Former Deputy Director/Works Housing Department	IIB
30 June 2001	17	Mr YUEN Tze-chu Business Director/Commercial and Business Development Housing Department	IIB
3 July 2001	18	Mr YUEN Tze-chu Business Director/Commercial and Business Development Housing Department	IIB
7 July 2001	19	Mr 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 2002	42	Part 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 2002	43	Part 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 2002	44	Mr HO Shu-kee Contract Manager for Shatin Area 14B Phase 2 project	IIC
22 January 2002	45	Mr Francis WONG Chi-chiu Assistant Contract Manager for Shatin Area 14B Phase 2 project	IIC
The 46th hearing was held in camera.
29 January 2002	47	Part 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 2002	48	Mr CHAN Kui-chiu Project Clerk of Works for Shatin Area 14B Phase 2 project	IID
5 February 2002	49	Part 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 2002	50	Mr CHAN Kui-chiu Project Clerk of Works for Shatin Area 14B Phase 2 project	IID
19 February 2002	51	Part 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 2002	52	Mr Derek ZEN Wei-peu Executive Director Zen Pacific Civil Contractors Ltd	IIE
26 February 2002	53	Part 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 2002	55	Part 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 2002	56	Mr 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 2002	58	Part 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 2002	59	Part 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 2002	60	Mr KU Chun-lung Project Clerk of Works for Shek Yam Estate Phase 2 project	IIF
23 April 2002	61	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 2002	63	Mr HA Siu-wah Project Clerk of Works for Tung Chung Area 30 Phase 3 project	IIF
7 May 2002	64	Part 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 2002	65	Mr Victor SO Hing-woh Mr Francis LAW Hoo-yan Mr Nicolas YEUNG Shu-yan Representatives of the Hong Kong Housing Society	IIG
14 May 2002	66	Mr CHEUNG Hau-wai Mr MO Kim-ming Mr CHEUNG Kwok-ming Representatives of the Buildings Department	IIG
18 May 2002	67	Part 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 2002	68	Mr TAM Lan-po Subcontractor of steel fixing for Tung Chung Area 30 Phase 3 building works	IIG
28 May 2002	69	Mr 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.