For discussion PWSC(96-97)53
on 10 July 1996
ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 706 -HIGHWAYS
Transport - Traffic Control
12TC - Traffic surveillance and information system for Tuen Mun Road - stage 2
Members are invited to recommend to Finance Committee to increase the approved project estimate of 12TC from $119.9 million by $75.1 million to $195 million in money-of-the-day prices for the implementation of the stage 2 works of the traffic surveillance and information system for Tuen Mun Road.
The approved project estimate of 12TC is insufficient for the works under the project.
2. The Commissioner for Transport, with the support of the Secretary for Transport, proposes to increase the approved project estimate of 12TC from $119.9 million by $75.1 million to $195 million in money-of-the-day (MOD) prices.
3. The present scope of the remaining works under 12TC comprises the installation of -
- 13 variable message signs along and at both ends of Tuen Mun Road;
- nine variable message signs on major roads feeding into Tuen Mun Road from Tsuen Wan, Tuen Mun and Yuen Long;
- automatic incident detectors for the detection of vehicle queues along Tuen Mun Road; and
- equipment at the Police Control Centre in Tai Po and at the Transport Departments New Territories Area Traffic Control Centre in Tsuen Wan for controlling the items installed under (a) to (c) above and for integrating them with the control consoles in the same premises which will control the closed circuit television (CCTV) system for Tuen Mun Road.
4 As a result of Members suggestion at the last meeting in June 1995 that additional signage should be provided on the Tin Shui Wai West Access, we have reviewed the need for more VMSs in Yuen Long, Tuen Mun and Tsuen Wan districts. The review indicates that in order to provide adequate guidance to motorists, we need to increase the total number of overhead variable message signs from 9 to 14, including the one on the Tin Shui Wai West Access.
5. With a view to proceeding with the project as soon as possible and to obtaining a more accurate estimate for the expanded scope, we have invited tenders on the basis of the revised project scope proposed in paragraph 4 above.
6. Based on an assessment of the tenders received for the project, the Commissioner for Transport considers it necessary to increase the approved project estimate of 12TC from $119.9 million by $75.1 million to $195 million in MOD prices (see paragraph 7 below). The increase of $75.1 million is mainly due to the increase in the number of signs and the higher rates submitted by the tenderers in the light of the difficult working conditions in Tuen Mun Road. A summary of the major factors contributing to the increase in the approved project estimate is as follows -
|
|
Factor
|
|
$ million
(MOD)
|
|
%
|
|
(a)
|
Higher tender rates for the original works
|
|
32.5
|
|
40.4
|
|
|
(i) contract preliminaries
|
6.5
|
|
|
|
|
|
(ii) civil works
|
27.7
|
|
|
|
|
|
(iii) electrical and mechanical works
|
(1.7)
|
|
|
|
|
(b)
|
Additional variable message signs required
|
|
34.8
|
|
43.3
|
|
|
(i) contract preliminaries
|
3.5
|
|
|
|
|
|
(ii) civil works
|
11.9
|
|
|
|
|
|
(iii) electrical and mechanical works
|
13.3
|
|
|
|
|
|
(iv) consultants fees for construction stage
|
1.1
|
|
|
|
|
|
(v) site staff costs
|
5.0
|
|
|
|
|
(c)
|
Others
|
|
13.1
|
|
16.3
|
|
|
(i) contingencies
|
5.9
|
|
|
|
|
|
(ii) entrustment works, overseas training and duty visits
|
7.2
|
|
|
|
|
|
Sub-total
|
80.4
|
(at December
1995 prices)
|
|
|
(d)
|
Inflation allowance
|
(5.3)
|
|
|
|
|
|
|
Total
|
75.1
|
(in MOD prices)
|
100
|
A detailed comparison of the approved and revised project estimates is at the Enclosure.
7. Subject to approval, we will phase the expenditure as follows -
|
Consultants fees and site
staff costs
|
All other costs
|
Total
|
|
Year
|
$ million
(Dec 1995)
|
Price
adjustment
factor
|
$ million
(MOD)
|
$ million
(Dec 1995)
|
Price
adjustment
factor
|
$ million
(MOD)
|
|
1996 - 97
|
4.2
|
1.075
|
4.5
|
48.2
|
1
|
52.7
|
|
1997 - 98
|
7.0
|
1.1825
|
8.3
|
114.8
|
1
|
123.1
|
|
1998 - 99
|
1.6
|
1.30075
|
2.1
|
14.4
|
1
|
16.5
|
|
1999 - 00
|
0.7
|
1.43083
|
1.0
|
1.7
|
1
|
2.7
|
|
13.5
|
|
15.9
|
179.1
|
|
195.0
|
We have derived the MOD estimate for expenditures on consultants fees and site staff cost which are subject to price fluctuation on the basis of the Governments forecast of trend labour and construction prices for the period 1996 to 2000. We have used a price adjustment factor of 1 to derive the estimates for expenditure on other costs because we have already tendered the works and we allow no price fluctuations for inflation in the contract.
8. The additional annually recurrent expenditure arising from the revision in the approved project estimate is $2.2 million, bringing the total recurrent expenditure for this system to $6.9 million per year.
9. As there are only minor changes in the approved project scope, we have not carried out any further public consultation.
10. The revised scope and proposed increase in the approved project estimate will not give rise to any additional environmental impact.
11. The project does not require any land acquisition.
12. At the Finance Committee meeting in July 1995, Members agreed to upgrade this project to Category A. We have completed the assessment of the tenders received for this project and have submitted the tender report to the Central Tender Board. Subject to Members approval of the increase in the project estimate and the Central Tender Boards acceptance of the recommendation in the tender report, we will award the contract to the recommended tenderer and start works in July 1996 for phased completion in October 1997 and March 1998 respectively.
13. The project was originally scheduled to start in October 1995 for completion in April 1997. The slippage is in part due to the complexity of the project in that we have taken a total of five more months than originally planned to complete the prequalification of tenders, tendering and assessment of tenders. Other factors for the slippage include the need to design the additional variable message signs, to revise tender documents because of the delay in Tuen Mun Road widening project and to seek approval for additional funds from the Finance Committee.
Enclosure to PWSC (96-97)53
A detailed comparison of the approved and revised project estimates is as follows -
|
Approved
Estimate
|
Revised
Estimate
|
|
|
$ million
|
|
(a) Civil works
|
|
|
|
(i) gantries and roadside mountings including foundations for variable message signs and automatic incident detectors
|
16.6
|
39.4
|
|
(ii) ducts for the cable network
|
6.2
|
22.8
|
|
(iii) traffic diversions
|
2.1
|
2.3
|
|
(iv) contract preliminaries (Contractors site office, insurance, etc.)
|
3.7
|
14.7
|
|
Sub-total (a)
|
28.6
|
79.2
|
|
(b) Electrical and mechanical (E&M) works
|
|
|
|
(i) variable message signs
|
42.2
|
34.7
|
|
(ii) automatic incident detectors
|
4.6
|
4.3
|
|
(iii) data transmission systems
|
4.7
|
8.9
|
|
(iv) electrical power systems
|
6.0
|
7.3
|
|
(v) control centre equipment
|
5.0
|
17.2
|
|
(vi) spares
|
2.2
|
-
|
|
(vii) contract preliminaries (Engineers site office, transportation for Engineer, insurance, etc.)
|
5.2
|
4.2
|
|
(viii) testing and commissioning
|
-
|
3.9
|
|
Sub-total (b)
|
69.9
|
80.5
|
|
(c) Consultants fees for construction stage
|
2.3
|
3.4
|
|
(d) Site staff costs
|
3.9
|
8.9
|
|
(e) Contingencies
|
|
|
|
(i) project works (covering (a) to (b) above)
|
7.1
|
12.2
|
|
(ii) consultants fees and site staff costs
|
0.4
|
1.2
|
|
(f) Others
|
|
|
|
(i) entrustment works
|
-
|
4.4
|
|
(ii) overseas training and duty visits
|
-
|
2.8
|
|
Sub-total
|
112.2 (at Dec 1994
prices)
|
192.6 (at Dec 1995
prices)
|
|
(g) Inflation allowance
|
7.7
|
2.4
|
|
Total
|
119.9 (in MOD
prices)
|
195.0 (in MOD
prices)
|
A breakdown of the estimates for consultants fees and site staff costs is at the Annex.
2. As regards 1(a) (civil works), the total increase of $50.6 million in respect of the cost of civil works is due to the following reasons -
- we need to install more variable message signs on major roads feeding into Tuen Mun Road from Tsuen Wan, Tuen Mun and Yuen Long;
- we prepared the original estimate on the basis of rates of major highways projects wherever applicable. The tenderers rates are significantly higher than our estimates because they have taken into account the traffic congestion and difficult working condition in Tuen Mun Road, and because more night works will be required in order to minimise interruption to traffic;
- we prepared the original cost estimate on the basis of rates applicable to previous projects with civil contractors as the main contractor. In this project, the main contractor will be from the electrical and mechanical discipline. So the tenderers may have submitted more conservative rates to make provisions for co-ordinating the civil works under the project.
3. As regards 1(b) (E & M works), the net increase of $10.6 million is mainly due to -
- a reduction of $7.8 million in the cost of Light Emitting Diode type variable message signs and automatic incident detectors, the prices of which have dropped significantly in the industry;
- an increase of $4.2 million and $1.3 million respectively in the costs of data transmission and electrical power systems as more variable signs are to be installed on major roads feeding into Tuen Mun Road from Tuen Wan, Tuen Mun and Yuen Long;
- an increase of $12.2 million in the cost of control centre equipment which is mainly attributed to the cost of control system software for driving the variable message signs. The tenderer has included this as part of the cost of control centre equipment rather than having the cost distributed to related E&M items;
- a reduction of $2.2 million for spares as a one-off procurement of spares by Government is now unnecessary and we will amortise the cost of spares in the annual maintenance charges;
- the inclusion of $3.9 million for the costs of testing and commissioning as a separate item in the tender document upon the consultants advice. This cost was absorbed in the estimate of related E&M works items when we prepared the original estimate.
4. As regards 1(c) (consultants fees for construction stage), the increase of $1.1 million is due to the need for more work to be undertaken by the consultants than we originally envisaged in the consultancy brief. The brief covers the provision of signs only along and at both ends of Tuen Mun Road, but the scope of the project has now been extended to cover the installation of signs on other major roads feeding into Tuen Mun Road from Tsuen Wan, Tuen Mun and Yuen Long.
5. As regards 1(d) (site staff costs), the increase of $5 million is mainly due to the employment of additional site staff as a result of an increase in the number of signs to be installed, and more night works in order to minimise the disruption to traffic on Tuen Mun Road and other major roads;
6. As regards 1(e) (contingencies), the increases of $5.1 million and $0.8 million respectively for project works and consultants fees and site staff costs are generally in line with the increase in the revised project estimate.
7. As regards (f)(i) (others - entrustment works), the $4.4 million is to allow for the entrustment of works under this project to other neighbouring projects along Tuen Mun Road, including the Improvement to Tuen Mun Road, the Lantau Fixed Crossing - Ting Kau Bridge, the Route 3 Country Park Section and the Improvement to Castle Peak Road from Siu Lam to So Kwun Tan, because the tight schedules of those projects do not permit timely handover of their project sites to the contractor for this project.
8. As regards (f)(ii) (others - overseas training and duty visits), the $2.8 million is to make provision for the project staff to attend overseas training and factory acceptance tests on the various equipment/systems to be provided under this project. This is to safeguard the Governments interests. We have not allowed for this requirement in the original project estimate.
9. As regards (g) (inflation allowance), the decrease of $5.3 million is due to the exclusion of adjustment to tender rates of the civil works due to inflation which will not be allowed in the contract. The revised estimate is to allow for inflation adjustments for consultants fees, site staff costs and the associated contingencies (i.e. paragraphs 1(c), (d) and (e)(ii) above).
Last Updated on 8 December 1998
