For discussion
on 20 January 1999
PWSC(98-99)56
ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 711 - HOUSING
Education - Primary
196EP - Primary school in area 105, Tin Shui Wai
Members are invited to recommend to Finance Committee to increase the approved project estimate of 196EP from $81.3 million by $32.2 million to $113.5 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 Housing and the Secretary for Education and Manpower, proposes to -
- expand the project scope of 196EP to provide an additional remedial teaching room, a multi-purpose area and to increase the floor area of existing classrooms; and
- to increase the project estimate from $81.3 million by $32.2 million to $113.5 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 196EP to Category A in January 1998. 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 196EP to adopt the latest design and schedule of accommodation for standard primary schools to be completed from the 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 start the construction of 196EP in April 1998 together with the related housing blocks in area 105, Tin Shui Wai for completion in March 2001. Subsequent to the upgrading of 196EP, we undertook a review of the design and schedule of accommodation for standard primary schools with a view to providing additional facilities and a better learning and teaching environment. Consequently, we held up the construction of 196EP pending the result of the review. We started adopting the new designs (Year 2000 designs) for schools in October 1998, we therefore propose to expand the project scope of 196EP in accordance with the Year 2000 design for primary schools. Such expansion will enable students and teachers to benefit from a better 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 196EP was $81.3 million in MOD prices (based on a constant price of $59.3 million in December 1996 prices). We originally planned to start the construction works in April 1998 for completion in March 2001. However, as the construction programme for 196EP was deferred pending the result of review of the design and schedule of accommodation for standard primary schools, the approved project estimate of $81.3 million may no longer be adequate. If we were to implement the project based on the original scope approved by the Finance Committee and in accordance with the deferred programme, the project estimate would be $88.6 million in MOD prices. Thus an additional $7.3 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. We estimate the additional funding required to provide the new and expanded facilities to be $24.9 million in MOD prices. Therefore, we need to increase the approved project estimate of 196EP from $81.3 million by $32.2 million to $113.5 million in MOD prices in order to construct a standard Year 2000 design primary school by February 2001. A comparison of the revised project estimate with the approved project estimate of the project is at Enclosure 2.
7. To tie in with the overall public housing development programme in area 105, Tin Shui Wai, we will entrust the construction of the school to the Housing Authority (HA).
FINANCIAL IMPLICATIONS
8. We estimate the revised project estimate of 196EP to be $113.5 million in MOD prices, made up as follows -
| $ million
|
|---|
| (a) Piling | 13.6
|
| (b) Building | 62.2
|
| (c) Building services | 15.1
|
| (d) Drainage and external works | 10.0
|
| (e) Contingencies | 10.3
|
| (f) 2% Housing Authority on-cost | 2.3
|
| ______
|
| Total | 113.5 | (in MOD prices)
|
| ______
|
After the expansion in scope, the construction floor area of 196EP will be 10 526 square metres. The construction unit cost, represented by building and building services costs, is $7,344 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.
9. Subject to approval, we plan to phase the expenditure of this project as follows -
| Year | $ million(MOD)
|
|---|
| 1999 - 2000 | 21.8
|
| 2000 - 01 | 67.0
|
| 2001 - 02 | 20.7
|
| 2002 - 03 | 4.0
|
| ______
|
| 113.5
|
| ______
|
10. We derived the MOD estimates on the basis of the Government*s forecast of trend labour and construction prices for the period 1999 to 2003. We will entrust the construction of the school to HA. The latter will include the foundation and the building works as part of the housing estate development contract. The contract will be let on a fixed-price lump-sum basis because we can clearly define the scope of works in advance, leaving little room for uncertainty.
11. We estimate the annually recurrent expenditure for the school to be $17.9 million. As the new school will be operated as an aided school, the sponsoring body will bear the cost of furniture and equipment, estimated to be $4.2 million.
PUBLIC CONSULTATION
12. We consulted the Social Services and Publicity Committee of the Yuen Long 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 present proposal to provide additional facilities in the proposed school.
ENVIRONMENTAL IMPLICATIONS
13. The Director of Housing (D of H) completed and the Director of Environmental Protection vetted the Preliminary Environment Review (PER) for 196EP in September 1997. The PER concluded that the proposed school will not be subject to any adverse environmental impact. We will control noise, dust and site run-off nuisances during construction through the implementation of appropriate mitigation measures in the relevant works contracts.
LAND ACQUISITION
14. The proposed revision to the project scope does not require further land acquisition.
BACKGROUND INFORMATION
15. D of H has completed the ground investigation for the project. He is finalising the working drawings and tender documents for the project using in-house staff resources. D of H plans to start the construction works in May 1999 for completion in January 2001 to tie in with the overall housing development programme in area 105, Tin Shui Wai.
--------------------------------------
Housing Bureau
January 1999
(PWSC0061/WIN3)
Enclosure 1 to PWSC(98-99)56
Comparison of the project estimates based on the
original construction programme and a deferred programme
The original project estimate of 196EP was $59.3 million in December 1996 prices, made up as follows -
| $ million
|
|---|
| (a) Piling | 8.5
|
| (b) Building | 30.6
|
| (c) Building services | 6.8
|
| (d) Drainage and external works | 7.0
|
| (e) Contingencies | 5.2
|
| (f) 2% Housing Authority on-cost | 1.2
|
| Total | 59.3
|
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 | 2.7 | 1.16358 | 3.1
|
| 1999 - 2000 | 17.0 | 1.26830 | 21.6
|
| 2000 - 01 | 28.4 | 1.38244 | 39.3
|
| 2001 - 02 | 8.2 | 1.50686 | 12.4
|
| 2002 - 03 | 3.0 | 1.64248 | 4.9
|
| ________ | | ________
|
| 59.3 | | 81.3
|
| ________ | | ________
|
The project estimate in MOD prices based on a deferred construction programme is as follows -
| Year | $ million
(Dec 1996) | Pricead
justment
factor | $ million
(MOD)
|
|---|
| 1999 - 2000 | 2.7 | 1.26830 | 3.4
|
| 2000 - 01 | 17.0 | 1.38244 | 23.5
|
| 2001 - 02 | 28.4 | 1.50686 | 42.8
|
| 2002 - 03 | 8.2 | 1.64248 | 13.5
|
| 2003 - 04 | 3.0 | 1.79030 | 5.4
|
| ________ | | ________
|
| 59.3 | | 88.6
|
| ________ | | ________
|
(PWSC0061/WIN3)
Enclosure 2 to PWSC(98-99)56
196EP - Primary school in area 105, Tin Shui Wai
The table below shows the original approved project estimate, the revised project estimate for 196EP and the difference between the two -
| Approved
project
estimate
(MOD)
$ million | Revised
project
estimate
(MOD)
$ million
| Difference
$ million
|
|---|
| (a) Piling | 11.6 | 13.6 | 2.0
|
| (b) Building | 42.0 | 62.2 | 20.2
|
| (c) Building services | 9.4 | 15.1 | 5.7
|
| (d) Drainage and external works | 9.6 | 10.0 | 0.4
|
| (e) Contingencies | 7.1 | 10.3 | 3.2
|
| (f) 2% Housing Authority on-cost | 1.6 | 2.3 | 0.7
|
| _____ | ______ | _____
|
| Total | 81.3 | 113.5 | 32.2
|
| _____ | ______ | _____
|
2.
As regards (a) (Piling), of the increase of $2.0 million, $1.1 million is due to the additional piling required as a result of the increase in the building area and height while $0.9 million is due to price adjustments because of the delay in the construction programme.
3.
As regards (b) (Building), of the increase of $20.2 million, $15.4 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, $4.5 million is due to the additional building services works required as a result of the increase in the building area and the enhance provision of IT facilities. The remaining increase of $1.2 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 $0.4 million is due to price adjustments because of the delay in the construction programme.
6.
As regards (e) (Contingencies), the increase of $3.2 million represents the proportional increase in the contingency allowance.
7.
As regards (f) (2% Housing Authority on-cost), the increase of $0.7 million represents the proportional increase in the HA on-cost.
(PWSC0061/WIN3)
