For discussion
on 16 December 1998
PWSC(98-99)55
ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 703 - BUILDINGS
Education - Primary
238EP - Primary school in area 77, Sha Tin
Members are invited to recommend to Finance Committee to increase the approved project estimate of 238EP from $71.1 million by $35.4 million to $106.5 million in money-of-the-day prices to provide additional facilities to meet the latest design for primary schools.
PROBLEM
The proposed primary school does not meet our latest design standards which aim to provide a better learning and teaching environment for students and teachers.
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 238EP to provide an additional remedial teaching room, a multi-purpose area and to increase the floor area of existng classrooms; and
- to increase the project estimate from $71.1 million by $35.4 million to $106.5 million in money-of-the-day (MOD) prices to meet the cost of a primary school based on the latest design.
PROJECT SCOPE AND NATURE
3. Finance Committee approved the upgrading of 238EP to Category A in December 1997. The original project scope was based on the design for standard primary schools adopted in August 1997. The original project scope comprises the provision of -
- 30 classrooms;
- six special rooms, including a computer-assisted learning room and a language room;
- three remedial teaching rooms;
- a guidance activity/interview room;
- two interview rooms;
- staff rooms and a staff common room;
- a student activity centre;
- a conference room;
- a library;
- an assembly hall; and
- ancillary accommodation including a lift and relevant facilities for the handicapped.
We propose to expand the project scope of 238EP to adopt the latest design and schedule of accommodation for standard primary schools to be completed from year 2000 onwards (Year 2000 design). In doing so, the school will have the following additional/expanded facilities -
- one remedial teaching room;
- a multi-purpose area; and
- 30 enlarged classrooms (the floor area of each classroom will be increased from 56 square metres to 67 square metres).
JUSTIFICATION
4. We originally planned to commence the construction of 238EP in March 1998 for completion in August 1999. Owing to the need for the Territory Development Department (TDD) to re-enter a roadworks contract (Ma On Shan Development, Phase 3, Contract 5) arising from the liquidation of the contractor in question, the infrastructural works in the area around the school site were delayed by one year. TDD eventually re-commenced the infrastructural works in November 1998 for completion in May 2000. In the interim, the design and schedule of accommodation for primary schools have been substantially upgraded to provide more facilities and a better learning and teaching environment. This latest design will be adopted for primary schools to be completed from the year 2000 as far as possible. The delay to 238EP offers an opportunity to expand the original project scope in accordance with the latest design. Such expansion will enable students and teachers to enjoy an improved learning and teaching environment.
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 238EP was $71.1 million in MOD prices (based on a constant price of $58.6 million in December 1996 prices). We originally planned to start the construction works in March 1998 for completion in August 1999. However, as the construction programme for 238EP has been delayed, the approved project estimate of $71.1 million 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 $77.9 million in MOD prices. Thus an additional $6.8 million may be required due to 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 8 092 square metres by 2 434 square metres to 10 526 square metres. Moreover, as we originally intended to allocate the school to a sponsoring body as a new aided school, we have not included the cost of furniture and equipment in the approved project estimate. We now intend to allocate the school to an existing bi-sessional school for conversion to whole-day operation and we need to provide additional funding for the cost of furniture and equipment. We estimate the additional funding required due to the reasons stated above to be $28.6 million in MOD prices. Therefore, we need to increase the approved project estimate of 238EP from $71.1 million by $35.4 million to $106.5 million in MOD prices in order to construct a standard Year 2000 design primary school by August 2000. A comparison of the 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 238EP to be $106.5 million in MOD prices, made up as follows -
| $ million
|
|---|
| (a) Piling | 11.7
|
| (b) Building | 59.4
|
| (c) Building services | 14.1
|
| (d) Drainage and external works | 7.8
|
| (e) Furniture and equipment | 4.2
|
| (f) Contingencies | 9.3
|
| ______
|
| Total | 106.5 | (in MOD prices)
|
| ______
|
After the expansion in scope, the construction floor area of 238EP will be 10 526 square metres. The construction unit cost, represented by building and building services costs, is $6,983 per square metre in MOD prices. D Arch S considers this construction unit cost reasonable compared to similar primary school construction projects. The revised project estimate is in line with the approved project estimates for standard Year 2000 design primary schools which ranges from $105 million to $137 million in MOD prices.
8. Subject to approval, we planned to phase the expenditure of this project as follows -
| Year | $ million(MOD)
|
|---|
| 1999 - 2000 | 50.5
|
| 2000 - 01 | 47.3
|
| 2001 - 02 | 8.7
|
| ______
|
| 106.5
|
| ______
|
9. We derived the MOD estimates on the basis of the Government*s forecast of trend labour and construction prices for the period 1999 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 $17.9 million. The cost of furniture and equipment, estimated to be $4.2 million for the school, will be borne by Government as the school will be allocated to an existing bi-sessional school for conversion to whole-day operation.
PUBLIC CONSULTATION
11. We consulted the Sha Tin Provisional District Board in November 1997. Members 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. Based on the Preliminary Environmental Review (PER) completed by D Arch S in November 1996, the Director of Environmental Protection recommends the following mitigation measures to keep traffic noise impacts at the proposed school within the limits stipulated in the Hong Kong Planning Standards and Guidelines -
- construction of a 3-metre high noise barrier along the boundary of the whole site; and
- provision of insulated windows and air-conditioning to three special rooms on the 2/F and 3/F at the south-western facade of the special room block as well as 12 classrooms from 1/F to 6/F at the north-western facade of the classroom block.
We have included $2.5 million in the project estimate for implementing the above environmental mitigation 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. 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 238EP. 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 March 1999 for completion in August 2000.
----------------------------------------
Education and Manpower Bureau
December 1998
Enclosure 1 to PWSC(98-99)55
Comparison of the project estimates based on the original construction programme and a deferred programme
The original project estimate of 238EP was $58.6 million in December 1996 prices, made up as follows -
| $ million
|
|---|
| (a) Piling | 8.3
|
| (b) Building | 30.6
|
| (c) Building services | 6.9
|
| (d) Drainage and external works | 7.5
|
| (e) Contingencies | 5.3
|
| ______
|
| Total | 58.6
| (at December 1996 prices)
|
| ______
|
The project estimate in MOD prices based on the original construction programme is as follows -
| Year | $ million
(Dec 1996) | Pricead
justment
factor | $ million
(MOD)
|
|---|
| 1998 - 99 | 32.0 | 1.16358 | 37.2
|
| 1999 - 2000 | 25.1 | 1.26830 | 31.8
|
| 2000 - 01 | 1.5 | 1.38244 | 2.1
|
| ______ | | ______
|
| 58.6 | | 71.1
|
| ______ | | ______
|
If we were to construct the school now using the original project scope, the MOD price would be as follows -
| Year | $ million
(Dec 1996) | Pricead
justment
factor | $ million
(MOD)
|
|---|
| 1999 - 2000 | 31.0 | 1.26830 | 39.3
|
| 2000 - 01 | 24.0 | 1.38244 | 33.2
|
| 2001 - 02 | 3.6 | 1.50686 | 5.4
|
| ______ | | ______
|
| 58.6 | | 77.9
|
| ______ | | ______
|
Enclosure 2 to PWSC(98-99)55
238EP - Primary school in area 70, Sha Tin
The table below shows the original approved project estimate, the revised project estimate for 238EP and the difference between the two -
| Approved
project
estimate
(MOD)
$million
| Revised
project
estimate
(MOD)
$million
| Difference
$million
|
|---|
| (a) Piling | 10.1 | 11.7 | 1.6
|
| (b) Building | 37.1 | 57.8 | 20.7
|
| (c) Building services | 8.4 | 14.1 | 5.7
|
| (d) Drainage and external works | 9.1 | 9.4 | 0.3
|
| (e) Furniture and equipment | 0.0 | 4.2 | 4.2
|
| (f) Contingencies | 6.4 | 9.3 | 2.9
|
| _______ | _______ | _______
|
| Total | 71.1 | 106.5 | 35.4
|
| _______ | _______ | _______
|
2. As regards (a) (Piling), of the increase of $1.6 million, $0.9 million is due to the additional piling required as a result of the increase in the building area and height while $0.7 million is due to price adjustments because of the delay in the construction programme.
3. As regards (b) (Building), of the increase of $20.7 million, $15.9 million is due to the additional building works required as a result of the increase in the building area and height, and $4.8 million is due to price adjustments because of the delay in the construction programme.
4. As regards (c) (Building services), of the increase of $5.7 million, $4.7 million is due to the additional building services works required as a result of the increase in the building area and the enhanced provision of IT facilities. The remaining increase of $1.0 million is due to price adjustments because of the delay in the construction programme.
5. As regards (d) (Drainage and external works), the increase of $0.3 million is due to price adjustments because of the delay in the construction programme.
6. As regards (e) (Furniture and equipment), the increase of $4.2 million is for the provision of furniture and equipment to be borne by Government because the school will be allocated to an existing bi-sessional school for conversion to whole-day operation.
7. As regards (f) (Contingencies), the increase of $2.9 million represents the proportional increase in the contingency allowance.
