For discussion
on 16 December 1998
ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 703 - BUILDINGS
Education - Secondary
206ES - Secondary school in area 40, Fanling
Members are invited to recommend to Finance Committee to increase the approved project estimate of 206ES from $67 million by $49.3 million to $116.3 million in money-of-the-day prices to provide additional facilities to meet the latest design for secondary schools.
PROBLEM
The proposed secondary school does not meet our latest design standards which aims to avoid floating classes, to facilitate learning through information technology (IT) and language learning, and to provide a better learning and teaching environment.
PROPOSAL
2. The Director of Architectural Services (D Arch S), with the support of the Secretary for Education and Manpower, proposes to -
- expand the project scope of 206ES to provide four new and enlarged classrooms, to increase the floor area of existing classrooms, to provide two computer-assisted learning rooms, a language room, a multi-purpose room, an additional area for the staff rooms, a conference room and a multi-purpose area; and
- to increase the project estimate from $67 million by $49.3 million to $116.3 million in money-of-the-day (MOD) prices to meet the latest design for a secondary school.
PROJECT SCOPE AND NATURE
3. Finance Committee approved the upgrading of 206ES to Category A in November 1996. The original project scope was based on the design for standard secondary schools adopted in 1995. The original project scope comprises the provision of -
- 26 classrooms;
- 13 special rooms;
- three remedial teaching rooms;
- a guidance activity/interview room;
- two interview rooms;
- staff rooms and a staff common room;
- a student activity centre;
- a library;
- an assembly hall; and
- ancillary accommodation including a lift and relevant facilities for the handicapped.
We propose to expand the project scope to adopt the latest design and schedule of accommodation for standard secondary schools to be completed from year 2000 onwards (Year 2000 design). In doing so, the school will have the following additional/expanded facilities -
- 26 enlarged classrooms (the floor area of each classroom increased from 56 square metres to 67 square metres);
- four additional enlarged classrooms;
- two computer-assisted learning rooms;
- a language room;
- a multi-purpose room;
- an additional floor area of 83 square metres for the existing staff rooms;
- a conference room; and
- a multi-purpose area.
JUSTIFICATION
4. We originally planned to commence the construction of 206ES in March 1997 for completion in August 1998. However, the programme was delayed as the site was not available for construction because one of the landowners refused to release the land for development. This land dispute was eventually resolved in July 1998. Meanwhile, the design and schedule of accommodation for secondary schools have been substantially upgraded to provide additional facilities and a better learning and teaching environment. An addition of four classrooms will help eliminate floating classes for F. 6 and F. 7. This latest design will be adopted for secondary schools to be completed from the year 2000 as far as possible. The delay to 206ES offers an opportunity to expand the original project scope in accordance with the latest design. Such expansion will enable students to have better facilities for learning through IT and for language learning.
5. Having reviewed the financial position of the project, we conclude that additional funds will be required to construct the school in accordance with the Year 2000 design. The original approved project estimate for 206ES was $67 million in MOD prices (based on a constant price of $53.1 million at December 1995 prices). We originally planned to start the construction works in March 1997 for completion in August 1998. However, as the construction programme for 206ES has been delayed, the approved project estimate of $67million may no longer be adequate. If we were to implement the project today based on the original scope approved by the Finance Committee, the project estimate would be $80 million in MOD prices. Thus an additional $13 million will be required due to the movements in prices over time. A comparison of the project estimate based on the original construction programme and a deferred programme is at Enclosure 1.
6. In addition to the above, the change in scope of the project to the Year 2000 design will lead to further costs because of the additional facilities being provided and the increase in the construction floor area of the school building from 9 073 square metres by 3 042 square metres to 12 115 square metres. We estimate the additional funding required to provide the new and expanded facilities to be $36.3 million in MOD prices. Therefore, we need to increase the approved project estimate of 206ES from $67 million by $49.3 million to $116.3 million in order to construct a standard Year 2000 design secondary school by August 2000. A comparison of the proposed revised project estimate with the approved project estimate of the project is at Enclosure 2.
FINANCIAL IMPLICATION
7. We estimate the revised project estimate of 206ES to be $116.3 million in MOD prices, made up as follows -
| $ million
|
|---|
| (a) Piling | 14.3
|
| (b) Building | 62.4
|
| (c) Building services | 18.1
|
| (d) Drainage and external works | 10.9
|
| (e) Contingencies | 10.6
|
| ______
|
| Total | 116.3
|
| ______ | (in MOD prices)
|
After the expansion in scope, the construction floor area of 206ES will be 12 115 square metres. The construction unit cost, represented by building and building services costs, is $6,645 per square metre in MOD prices. D Arch S considers this construction unit cost reasonable compared to similar school construction projects. The revised project estimate is in line with the approved project estimates of standard Year 2000 design secondary schools which ranges from $117 million to $143.3 million in MOD prices.
8. Subject to approval, we planned to phase the expenditure of this project as follows -
| Year | $ million
(MOD)
|
|---|
| 1998 - 99 | 0.7
|
| 1999 - 2000 | 54.2
|
| 2000 - 01 | 46.3
|
| 2001 - 02 | 15.1
|
| ______
|
| 116.3
|
| ______
|
9. We derived the MOD estimates on the basis of the Government's forecast of trend labour and construction prices for the period 1998 to 2002. We are able to tender the works under a fixed-price lump-sum contract because we can clearly define the scope of works in advance, leaving little room for uncertainty.
10. We estimate the annually recurrent expenditure for the school to be $36.6 million. As the new school will be operated as an aided school, the sponsoring body will bear the costs of furniture and equipment, estimated to be $9.2 million.
PUBLIC CONSULTATION
11. We consulted the Recreation, Culture and Social Services Committee of the then North District Board on 206ES in September 1996. Members of the committee supported the project. As the expansion of the original project scope will not lead to any enlargement of the school site, we consider further public consultation unnecessary. We also expect the public to welcome our proposal to provide additional facilities in the proposed school.
ENVIRONMENTAL IMPLICATIONS
12. D Arch S completed a Preliminary Environmental Review (PER) in September 1998. The Director of Environmental Protection vetted the PER and concluded that no Environmental Impact Assessment was required for the project. We will implement the following mitigation measures to keep traffic noise impacts at the proposed school below the limits stipulated in the Hong Kong Planning Standards and Guidelines -
- provision of insulated windows and air-conditioning to all classrooms, one remedial teaching room and three special rooms on the north-eastern facade of the classroom block; and
- provision of insulated windows and air-conditioning to six special rooms on 1/F to 6/F at the north-western facade of the special classroom block.
We have included $3.0 million in the project estimate for implementing the above measures.
13. During construction, we will control noise, dust and site run-off nuisances in accordance with established standards and guidelines through the implementation of mitigation measures under the relevant works contract.
LAND ACQUISITION
14. Part of the school site was held under private ownership. This was resumed in July 1998 for the school development. The proposed revision to the project scope does not require further land acquisition.
BACKGROUND INFORMATION
15. D Arch S has completed the ground investigation for 206ES. He is finalising the working drawings and tender documents for the project using in-house staff resources. We plan to start the construction works in January 1999 for completion in August 2000.
-----------------------------------------
Education and Manpower Bureau
December 1998
(PWSC0015/WIN1)
Enclosure 1 to PWSC(98-99)54
Comparison of the project estimates based on the original construction programme and a deferred programme
The original project estimate of 206ES was $53.1 million in December 1995 prices, made up as follows -
| $ million
|
|---|
| (a) Piling | 7.3
|
| (b) Building | 26.5
|
| (c) Building services | 7.6
|
| (d) Drainage and external works
| 6.9
|
| (e) Contingencies
| 4.8
|
| ______
|
| Total | 53.1
|
| ______ | (at December
1995 prices)
|
The project estimate in MOD prices based on the original construction programme is as follows -
| Year | $ million
(Dec 1995)
| Price
adjustment
factor
| $ million
(MOD)
|
|---|
| 1996 - 97 | 0.1 | 1.07500 | 0.1
|
| 1997 - 98 | 25.6 | 1.182503 | 0.3
|
| 1998 - 99 | 20.5 | 1.300752 | 6.7
|
| 1999 - 20 | 006.9 | 1.43083 | 9.9
|
| ______ | | ______
|
| 53.1
| | 67.0
|
| ______ | | ______
|
If we were to construct the school now using the original project scope, the MOD price would be as follows -
| Year | $ million
(Dec 1995)
| Price
adjustment
factor
| $ million
(MOD)
|
|---|
| 1998 - 99 | 0.5 | 1.3007 | 50.7
|
| 1999 - 2000 | 25.2 | 1.43083 | 36.1
|
| 2000 - 01 | 20.5 | 1.54708 | 31.7
|
| 2001 - 02 | 6.9 | 1.66311 | 11.5
|
| ______ | | ______
|
| 53.1 | | 80.0
|
| ______ | | ______
|
206ES - Secondary school in area 40, Fanling
The table below shows the original approved project estimate, the revised project estimate for 206ES and the difference between the two -
| Approved
project
estimate
(MOD)
$million
| Revised
project
estimate
(MOD)
$million
| Difference
$million
|
|---|
| (a) Piling
| 9.2 | 14.3
| 5.1
|
| (b) Building
| 33.3
| 62.4
| 29.1
|
| (c) Building services
| 9.7
| 18.1
| 8.4
|
| (d) Drainage and external works
| 8.7
| 10.9
| 2.2
|
| (e) Contingencies
| 6.1 |
10.6 |
4.5
|
|
| ______
| ______
| ______
|
| Total | 67.0
______ | 116.3
______ | 49.3
______
|
2. As regards (a) (Piling), of the increase of $5.1 million, $3 million is due to the additional piling required as a resulted of the increased building area and height of the project while $2.1 million is due to price adjustments because of the delay in the construction programme.
3. As regards (b) (Building), of the increase of $29.1 million, $21.1 million is due to the additional building works required as a result of the increased building area of the project, and $8 million is due to price adjustments because of the delay in the construction programme.
4. As regards (c) (Building services), of the increase of $8.4 million, $7.1 million is due to the additional building services works required as a result of the increased building area and enhanced IT facilities provided for the project, and $1.3 million is due to price adjustments because of the delay in the construction programme.
5. As regards (d) (Drainage and external works), of the increase of $2.2 million, $0.6 million is due to the additional length of access ramp required under the new design, and $1.6 million is due to price adjustments because of the delay in the construction programme.
6. As regards (e) (Contingencies), the increase of $4.5 million represents the proportional increase in contingency costs.
