Events | Fundraising | Industry News Autumn 2013
明建會 The Lighthouse Club Asia Pacific Region Australia | Cambodia | Hong Kong | Macau | Malaysia | Philippines | Singapore | Thailand | Vietnam
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In This Issue 06 Interview with MTRC Projects Director Mr TC Chew 10 The Lighthouse Club farewells friend and safety campaigner Derek Smyth 17 Housing Authority commited to improved site safety 25 Opinion - industry professionals share their views 26 The Lighthouse Club Annual Construction Conference 28 The Australian Construction Market, by Paul Roberts 30 Philippines new scholars 34 A look at regional social events 39 Australian News 42 Upcoming Regional Events
Chairman’s Message Greetings and welcome to this edition of the Lighthouse Magazine. As Chairman of the Lighthouse Club Asia Pacific Region it gives me great pleasure to introduce to you this latest edition of the Lighthouse Magazine and to thank our sponsors and those persons dotted around the region who have helped make it possible by providing the content of the magazine. For some time now we have been considering how we can further develop the Lighthouse Magazine in terms of content and appeal to readers and this edition, together with the following editions will progressively see us move the magazine to the next level of production. As such we hope that you are going to notice additional content which we trust you will find useful and informative, both about the Lighthouse Club and the construction industry itself in the Asia Pacific Region. Helping us with this endeavour, we have the
THE LIGHTHOUSE Autumn 2013 The Lighthouse Club Asia Pacific Region Suite 1901-2, Hopewell Centre, 183 Queens Road East, Wanchai, Hong Kong Tel : +852 2736 9885 Fax : +852 2687 2252 firstname.lastname@example.org Administration Secretary : Ms Elaine Man Published by ROF Media Publisher : Mike Staley Designer : Parnell Chan E : email@example.com T : +852 3150 8988
media publishing and production team of ROF Media in Hong Kong and I hope that you will enjoy the fruits of their work. Sadly in this issue we also say farewell to an old friend and colleague in the Lighthouse Club, Derek Smyth. I personally and professionally have known Derek since the early 1980’s and Derek’s sudden and untimely passing away came as a shock to me, as I am sure that it has to all of his family and friends around the world, including those who know Derek though his activities on the committee of the Hong Kong Lighthouse Club. Read further about Derek, winner of the Golden Helmet award in 2007 on page 6 of this issue.
Executive Committee Chairman Steven Tennant Immediate Past Chairman Mike Mclver Chairman Elect (to be elected) Deputy Chairman John Battersby Bangkok Jonathan Prichard firstname.lastname@example.org Ho Chi Minh City Colin Johnston email@example.com Hong Kong John Battersby, Les Leslie, Barry Adcock firstname.lastname@example.org
The Lighthouse is online at www.issuu.com/rofmedia
Kuala Lumpur H.T. Ong email@example.com Macau Keith Buckley, Adrian Frankland firstname.lastname@example.org Manlia Phil Thoburn email@example.com Phnom Penh (to be elected) Singapore John Davies, Willie Kay, Brian Radley firstname.lastname@example.org Australia Paul Roberts Paul.Roberts@lighthouseclub.org.sg
Images courtesy of MTRC.
Safety Begins With Me Interview with MTRC Projects Director
Visitors to the MTR Corp Ltd. headquarters might have spied it in the lobby, a bronze plaque that spells out the companyâ€™s drive to improve workplace safety standards. It is a detailed philosophy playing on themes of involvement, responsibility and flexibility for all parties working on site.
1 (from Right to left ) Mr T.C. Chew, Projects Director, MTRC ; Mr Christopher To, Executive Director, CIC ; Mr Jay H. Walder - CEO of MTRC ; Mr Steve S. Howarth, Project Safety Manager, MTRC Steve S. Howarth
2 Mr T.C. Chew
It could ring hollow but MTR Corp is prepared to back the words with Hong Kong’s most far reaching, thoughtful and innovative safety regulations. At this year’s Lighthouse Club Safety Leadership Awards on 8 March, MTR Corp claimed a gold award in the Client-Developer Category for this year’s most outstanding contribution to safety in the construction industry.
“One never knows whether it’s being accepted as the way forward and one always looks for improvement. This recognition encourages me to move forward and for us to do more.”
in industry-wide standards. But Mr Chew’s role is not hampered by the sheer scale of his portfolio. He is ultimately responsible for an expansion programme that began in 2009 and includes five new railways, spanning 158 contracts on more than 150 sites in Hong Kong, for a cost of HK$179.8 billion – about the GDP of Bolivia.
That Mr Chew was at the centre of both awards was apt recognition of a vastly experienced construction professional with a 35-year track record in transport projects around the world. Mr Chew told PRC Magazine that the awards reflected the The Client-Developer Award company’s collaborative approach Mr Chew joined MTR Corp in 2010 recognises the MTR’s overall to safety, which involved MTR, its with a resume that included stints leadership role in the construction contractors and partners. with the Land Transport Authority industry and the company’s passion for in Singapore, and responsibility for “I like to push two basic things that health and safety. The most welcomed Bombardier Transportation projects we have done for our people and we innovation was a focus on improving in Kuala Lumpur, Seoul and London. remind one another constantly. One is the working lives and conditions of frontline construction personnel, and In Singapore he took charge of road a little phrase, ‘safety begins with me’, the rapid rate of improvement, the and the other is ‘don’t walk by’,” and rail projects that were some judges said. The award was accepted by of the Lion City’s biggest works Mr Chew said. “These two ideas projects safety manager Steve Howarth projects of the century. He enjoyed enshrine our philosophies of caring for workers and improving their safety.” and projects director TC Chew. a key role in introducing the first automated, driverless North East It is a holistic approach to safety Mr Chew later claimed the Lighthouse Line for the Singapore MRT. Club’s Golden Helmet award. The minimising risk for self and for award recognises his efforts in others, by empowering workers to There were also leadership roles promoting safety in its widest sense, assume responsibility for their fellow in several light rail projects, the both throughout an organisation and worker’s health. Mr Chew said the city’s Circle Line projects and the across the wider industry. net result was a combination of extension of the city’s East West trust, empowerment and correction Line past Changi Airport. “I’m particularly happy to get this without punitive action by the MTR recognition as this is an endorsement that “creates a momentum of wanting As a major engineering client in that the MTR and the team of people Hong Kong, the MTR has the power to do more” between the company, with me who believe in promoting contractor and workers. He calls it to dramatically improve its safety safety in construction are moving in Safety Starts With Me. standards and cause a knock-on effect the right direction,” he said.
The Golden Helmet has been the industry’s benchmark award for safety since the mid-1990s. Each winner identified by the Lighthouse Club’s select judging panel has placed safety at the top of management’s agenda and used every opportunity to reduce risk, reduce injuries, save lives and family heartache.
Observatory declares a hot weather warning. The programme began last summer and will be developed further this year by offering a powdered energy drink sachet to site workers.
The award was based on a body of research from around the world that shows accident rates increase as heat The MTR has launched a number of fatigue increases. “It was one of the safety initiatives in the past 12 months concerns we had. With an ageing that were recognised by the judging construction population, hard work panel as industry best practice. Indeed, under the hot sun is not necessarily the MTR has captured imaginations an ideal environment,” he said. with two industry-wide firsts. The judging panel was impressed by the Then there is the provision of a MTR’s initiative in introducing the Workers Life Insurance Scheme, a project-wide Heat Stress Prevention mandatory policy for all workers on Guidelines. They are the first MTR’s project sites, up to age 69, as construction company in Hong Kong well as to cover ancillary staff, cleaners with such guidelines. and security guards. Launched last year, the scheme provides HK$200,000 The Heat Stress Prevention for the family, should a worker die Campaign gives workers an whilst in the company’s employment. additional 15 minutes’ break both in the morning and afternoon Mr Chew said the insurance on days when the Hong Kong programme was one of the most
noticeable safety improvements ever made by a construction company. The scheme, unlike any ordinary labour insurance scheme, workmen’s compensation scheme or any kind of insurance scheme, was launched after the company heard complaints from its contractors and labour unions that workers were finding it hard to find adequate cover. “Nobody, as a client or an employer of subcontractors, has ever bought life insurance for workers, other than their direct staff, before. I think we must be the first in the region, if not the first in the world,” he said. “The whole thing is not about workplace compensation or any kind of insurance. This is to say to the guys that ‘we believe in you’ and ‘we believe that things can happen that are outside our normal control’.” A third vital part of the MTR’s safety drive has been in its support of smaller contractors and
sub-contractors. Mr Chew said smaller operators often lacked the financial resources to properly instruct and manage an effective site safety programme. The Safety Management System was borne from that need. Mr Chew pushed the development of the booklet and online resources, which are issued free to subcontractors. He pledged to continue the development of the safety management programme, saying it fits in well with the “learning cycle” the MTR had engaged with its contractors. The safety management system ties in with the New Worker Caring Programme that helps induct new workers and introduce them to the
right safety behaviours, and the iSafe that teaches a personal riskassessment process before starting work, ensuring individual workers are empowered to ensure safer workplaces. At the management level, Mr Chew has driven engagement by introducing quarterly Safety Conferences to improve communication, a Safety Improvement Incentive Scheme that rewards the best performed contractors, and Safety Awards to recognise safety leaders.
We have started on the first step with Safety Starts With Me,” he said. “If the contractor has that in the front of their minds at the first thing in the morning and throughout the whole day at work, you are beginning to change their behaviour. And that change in behaviour, rather than being a gung-ho, why-should-I-have-to-change-type of worker is what has to change.” “It’s a small way of making a big difference.”
Mr Chew says he’s preparing to go further this year to engage more positively with the contractors and subcontractors. “We think the big ticket number is about behavioural change.
1 Tunnelling works of the section between Yau Ma Tei Station and Whampoa Station of Kwun Tong Line Extension are being carried out by drill and blast method. The photo shows workers conducting temporary support works for the excavated tunnel face.
2 The boring machine has been assembled and launched the construction of the Express Rail Link tunnel section between Tai Kong Po and Tse Uk Tsuen in Yuen Long.
3 Spread footing, column and roof construction works are progressing at the depot site in Wong Chuk Hang under South Island Line (East). Completion of the depot site construction works is expected by early 2014.
4 Bridge deck construction across Aberdeen Channel for the railway viaduct is in progress. 5 Cut-and-cover works are being carried out in Shung King Street/ Tak On Street and Hung Hom Road/ Tak Man Street in Hung
Hom area for the construction of Whampoa Station of Kwun Tong Line Extension. It will become the terminus of MTR Kwun Tong Line upon commissioning. 6 The blasting of the Hong Kong University Station of the West Island Line is complete, structural works are taking place. Concrete lining works are carried out by the steel shutter to provide a permanent support to the tunnel.
Tireless campaigner for improved industry safety
A former executive director at Gammon Construction, Derek was himself honoured as the recipient of the 2007 Golden Helmet Award for his work with the Kowloon-Canton Railway Corporation, in particular the Safety Section where he campaigned tirelessly in relation to the raising of safety standards. Derek continually championed the safety cause at the highest levels of industry and was actively involved in lobbying senior government officials on industry-wide safety issues. He was also responsible for the introduction of the “Step Change” safety programme and was instrumental in initiating innovative safety management systems. In fact, so successful was his work in relation to improving onsite safety standards that Gammon’s record of accident rates plunged from 30 to 8.8 per thousand workers in the six years to 2006, enabling the company to save HK$22.6 million in premiums for employees’ compensation insurance based on its 2006 claims record. During his tenure as executive director at Gammon Construction, Derek also led Gammon in the establishment of the company’s Sustainability Department, the first contractor in Hong Kong to do so, which continues to publish an annual sustainability report.
With the recent passing away of Derek Smyth, the Hong Kong construction industry as a whole has lost a dedicated and longtime advocate for the continued review and improvement of workplace and onsite safety standards.
A civil engineer by profession from the United Kingdom, Derek arrived in Hong Kong in 1980 after working in the Middle East and Africa and spent most of his career in Hong Kong at Gammon Construction, dedicating himself to the design, supply chain, environment, quality control and risk management side of the business. An energetic, cheerful and highly respected professional, Derek was held in high esteem and with great regard by everyone he came into contact with. As a career-long advocate for the continual improvement and upgrading of industry safety standards and also for sustainable construction, the industry has lost a champion campaigner. A consummate professional and industry advocate, Derek Smyth in 2007 was nominated for the Golden Helmet Award by the Kowloon-Canton Railway Corporation. In addition to his tireless work as a member of the Lighthouse Club Hong Kong Branch executive committee, he also held leadership posts within the Hong Kong Construction Association, Business Environment Council and Provisional Construction Industry Co-ordination Board, as well as various construction industry task forces and also served as Vice Director of the Beijing Tsinghua-Gammon Safety Research Centre and as Chairman of the British Chamber of Commerce Construction Industry Group.
An outstanding ambassador for the promotion of safety in the construction industry and worth recipient of the Golden Helmut Award, Derek’s efforts in relation to constantly improving safety standards in Hong Kong will resonate across for decades to come and for the industry owes him a great debt of thanks. Safety Leadership Awards The Safety Leadership Awards were born out of discussions within the construction group at The British Chamber of Commerce. Overlooked by some in construction, the Chamber felt site safety was an issue that was simply too big to ignore. Through Derek Smyth’s encouragement, the Lighthouse Club’s Safety Committee (of which Derek was also a member) brought these awards into being. The purpose of the Safety Leadership Awards is as leading recognition for organisations that put safety at the forefront of their business ethics and activities. The awards promote good health and safety leadership and management which are the primary aims of both the Safety Leadership Awards and the Golden Helmet Award. The Golden Helmet award celebrates the work of a particular individual who has demonstrated exemplary safety leadership within the construction industry. The Client-Developer Category celebrates “exemplary safety leadership” for the lifespan of a project, from inception to design and on the site. The category includes government departments and two claimed a joint silver award this year. The judging panel, led by Hong Kong University academic Steve Rowlinson, awarded the trophy to the Civil Engineering and Development Department and the Drainage Services Department.
The Hong Kong government’s drainage department covers some of the most dangerous and inhospitable sites in the city – from tunnelling 160 metres underground, to the rooftops of the city’s towering skyscrapers – but is one of the government’s smallest engineering groups. Deputy director Tsui Wai said that the Harbour Area Treatment Scheme was a massive project, whose second stage was now in full swing. At an estimated cost of HK$17.2 billion, the second stage will connect eight sewerage treatment plants on Hong Kong Island to the city’s main water treatment site on Stonecutter’s Island. The department had run five individual safety campaigns over the six months preceding these awards, in addition to training and education mandated by law. The department works closely with the Labour Department and invites other specialist bodies to consult on specific issues. Accident rates have fallen substantially. The drainage department is considered one of the government’s better performing departments with 0.24 non-fatal accidents recorded per 100,000 man-hours worked last year, according to government data. Civil Engineering and Development Department deputy director Chan Chi-ming helps administer a HK$3.5-billion project budget each year on jobs that cover the length and breadth of Hong Kong. “I think what sets us apart is the degree of attention that we pay to safety,” he said. “In the past couple of years we have introduced our own annual commendation and award scheme. Every quarter we issue commendation letters and once a year we issue an annual award.” The department also claimed a silver award for making a “mature health and safety management system” part of daily business. The department had shown 1 3
1 MTR Project Division Management Team with
MTRC CEO Jay H. Walder (centre) and T.C. Chew, Projects Director, MTRC (centre-left) 2 Steve S. Howarth, MTRC 3 S.S. Tai, DSD (right) 4 T.C.Chew, MTRC; Ian Askew, Lambeth; Ted Lawton, Lambeth
leadership and displayed a unique focus on research to drive effective safety improvement programmes. Mr Chan said that the department was dedicated to integrating the best practices of construction from the West and applying them in Hong Kong. It had beefed up its programme of site visits, with 131 site visits by directorate-level staff in the year prior to the awards in March of this year. The department’s safety and environmental adviser, Kevin LEE, said the strong on-site presence was paired with training, teaching, audits, morning safety briefings and fortnightly safety talks – as a standard. It also provided a free-of-charge safety plan to smaller contractors.
contracts specifying that uniforms must be worn by contractors and it is investigating more academic research into all on-site safety breaches. Proudly apolitical, the Lighthouse Club operates in an environment closer to collegial than corporate, with its members being passionately devoted to the club’s leading raison d’être: safety. Since 1986, the Lighthouse Club has been a significant force for good in Hong Kong’s construction industry and 27 years later the Club has developed a presence throughout the Middle East, the Asia-Pacific region and has spread from Britain into Europe.
“These are not just figures. There are stories and families behind them,” Lee said. “If we can reduce near misses, eventually, we can reduce the serious ones. We need to have a system where all nearmiss incidents are reported.”
The Lighthouse Club’s Benevolent Funds are a source of financial aid and development for construction workers and their families around Asia whose aims vary according to need but under the uniting theme of funding for workers’ needs and those of their families.
Apart from dedicated resources to monitor site safety and manage an independent grading system of its contractors, the department has flagged two important initiatives. It plans to write more
The Lighthouse Club’s Safety Awards are a must for any construction company serious about safety and are also invaluable to maintaining the highest standards across the industry.
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Contractor’s Safety Awards The Contractor’s Safety Awards are designed to promote health and safety excellence in frontline organisations and to personnel facing risks from construction. These awards recognise foremen, subcontractors, safety professionals, and project teams and require considerable planning and support each year from the supporting organisations and individuals, including an intensive period of assessment and judging. Currently celebrating its fourth year after development from the original Safe Foreman Award which the Lighthouse Club of Hong Kong had been presenting since 1996, the Contractor’s Safety Awards were presented on 13 September 2013 at the Hong Kong Lighthouse Club’s Contractor’s Dinner, where the Hong Kong Construction Industry Council and Lighthouse Club joined forces to present the Awards, also supported by the Society of Registered Safety Officers, Hong Kong Occupational Safety and Health Association and IOSH HK Branch.
Designed to promote excellent health and safety performance with frontline organisations and personnel facing the actual risks from construction, these awards go hand-in-hand with the CIC’s work to improve standards in the industry. The Awards recognise foremen, subcontractors, safety professionals and project teams and require considerable planning and effort from the supporting organisations and individuals, including an intensive period of assessment and judging. 2013 Contractor’s Safety Award Winners The Chairman’s Award is a new award as of 2013 and is presented at the Chairman’s discretion, in this case for an individual who was identified during the judging as displaying exemplary safety leadership at the frontline.
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Winners of the Safety Leadership Awards
(left to right) Kyran Sze, Aedas; S.S.Tai, DSD; Kevin Lee, CEDD; Chan Chi-ming, CEDD; T.C. Chew, MTRC; Steve S. Howarth, MTRC; Philco Wong, MTRC; Roderic Hockin, MTRC; Ian Askew, Lambeth; unknown; Ted Lawton, Lambeth; unknown and unknown
Chairman’s Award: Safety Professional Award: Gabriel Y.W. So, Superintendent, Leighton Contractors Mr. Wai Yan AU (Asia) Limited Safe Foreman Award: Safe Project Team Award: Mr. Po Kuen TO Express Rail Link Contract XRL811A West Kowloon Terminus Approach Tunnel (North) – Mass Transit The Lighthouse Club remains committed to the Railway Corporation, Bachy-Soletanche-Laing continued monitoring and improvement of safety O’Rourke Joint Venture standards across the construction industry. To this end we value the ongoing support of all industry players in Safe Sub-contractor Award: our efforts to guaranteeing the health and safety of all Craft Projects International Co Ltd. who work in this dynamic industry and play a pivotal role in shaping our city into the future. Winners of the Contractor’s Safety Awards
An expanded report on these Awards will be published in the winter edition of The Lighthouse magazine.
Housing Authority initiatives promote safety across construction industry
As Hong Kong continues to grow, nearly half of the population lives in government subsidised housing. And it is Hong Kong Housing Authority (HA) safety initiatives that allow for the continued accidentfree construction of these seemingly endless tower blocks, whilst at the same time influencing constantly improving standards across the local construction industry.
Images courtesy Hong Kong Housing Authority.
Ms Ada Fung and other department staff attend a condensed site safety training course for directorates
With around 30 active HA construction projects involving over 6,000 onsite workers on the go at any one time, and while work standards and the quality of work produced is paramount, it also goes hand in hand with safety. As a public sector developer, HA is constantly striving to maximise the use of available resources in its continued provision of quality homes for low-income families with housing needs, however, the safety of onsite personnel ranks as the number one priority above and beyond all other considerations. The HA adoption of the extensive use of modularisation, mechanisation and prefabrication over many years, along with the benefits derived from
proven methodologies for onsite safety, is widely regarded as the forerunner of best practices applied across the industry today.
to improve and excel in onsite performance by strict adherence to its â€œfive-ZEROâ€? formula, namely ZERO accidents, ZERO incidents, ZERO convictions, ZERO complaints This has been achieved through the and ZERO disputes, and works introduction of practical measures, tirelessly to raise onsite standards and such as hard paved construction, performance and to foster best practices surveillance plus administrative as applied by contractors throughout measures for tower-crane lifting, and the procurement process, commencing intensified fall protection for lift shaft with the selection of tenderers, work, which go hand in hand with the the monitoring of contractorsâ€™ tightening of safety audits and safety performance, motivating those who performance assessments, together with perform and also sanctioning those the implementation of quarantines for who fail in their obligations to HA and tenders if tenderers or contractors the industry as a whole. breach safety guidelines or are found involved in specific onsite incidents. Specific new HA measures have been applied across the board at all The Housing Authority implements HA project sites to further secure a policy of encouraging contractors its notable zero-accident record.
5 2 6
1 Proper PPE for chiselling works 2 Workers wear safety belts with independent safety ropes while 3&4 5 6 7
These include the promoting of new safety-related innovations that are part of the Pay for Safety programme, the launch of HASAS (Housing Authority Safety Audit System) with a “safe system of work approach” in order to further enhance safety auditing in relation to active onsite contracts, the launch of HALENSAS (Housing Authority Lift and Escalator Nominated Sub-contracts Safety Auditing System), a safety audit programme specifically targeting lift works, the launch of SSIP (Surprise Safety Inspection Programme) that focuses on high-risk activities, as well as onsite safety compliance checks in relation to all onsite projects through surprise inspections without any advance notice.
dismantling working platforms Tidy metal formwork working area with safe work access Worker wearing proper PPE for welding work Proper safety belts worn when working at height Flag man equipped with reflective clothes
Health, Terry, K.C. Ching, explains that HA constantly initiates the introduction of new and innovative safety measures through Pay for Safety in order to continue the evolution of onsite safety.
requiring two workers and reducing hazards associated with traditional methods which were also labour intensive and required five or six workers to carry out, and also reducing waste and scrap.
“This has stimulated HA’s business partners to also going that extra mile by heralding safety innovations for meaningful purposes,” states Ms Ching. “In effect it is the leveraging of safety innovations that not only help make the construction process safer, but at the same time also assures the terms of quality, efficiency and construction worthiness.”
“Another recent “going the extra mile” initiative involves a 360-degree free rotating hanger system, where the hanger is set up on a steel frame to accommodate a generator and welding set for hanging electricity cables above ground,” states Ms Ching. “As a result hangers can be rotated so that the cables can be relocated easily during the welding work. This design also helps improve site housekeeping, thus reducing the risk of accidents as a result of tripping over cables lying on the ground. It also helps reduce the risk of electrical shocks and manual handling operations.”
“These initiatives need to be practicable and contribute to the continued improvement of control measures in relation to the different aspects of safety or health and, for the purpose of conferring recognition in Pay for Safety, have to be validated through safety audits by It’s all TEAMwork the Safety Audit Management Office of the Occupational Safety and Ms Ching explains that at HA, the term Health Council.” “TEAM’ refers to “Together Everyone Achieves More”, and onsite safety Additional recent examples of training programmes are conducted innovative initiatives introduced in for resident site staff, professionals relation to onsite safety include the and technical works staff, as well as safe fabrication of large diameter professional service providers in a bid bored piles in factories with tailorto strengthen core competencies. Additional innovations made machines, together with an “We promote a continuous process Speaking on behalf of HA, Housing automatic robotic welding arm, the of educating our staff and business Authority Senior Manager Safety and enhanced efficiency of fabrication
1 Large steel formwork working platform with wire mesh fencing 2 Proper barriers provided for electric arc welding 3 Safe fabrication of large diameter bored pile in factory by machine with 4 5 6 7 8
automatic robotic welding arm Safety equipment provided for personal protection Protective canopies fixed around the edge of buildings Using mobile hydraulic working platform for reinforcement fixing Air monitoring of confined spaces Plastic caps to starter bars
partners and encouraging them to always strive to improve and excel in their performance,” states Ms Ching. “HA will continue to implement caring safety measures in line with all its projects, as well as future industry developments. We will also examine linking SSIP with Pay for Safety, establish an Occupational Incident & Disease Surveillance System for monitoring accidents and incidents onsite, implement measures to effectively strengthen mechanical plant safety, further strengthen the safety competencies of contractor management personnel, and review the practicality of incorporating the SSIP score index into system scores. In this way we will continue in the pursuance of the “five-ZERO” formula and a safer onsite working environment for everyone.” Terry, K.C. Ching, Housing Authority Senior Manager Safety and Health
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Managing Projects James Sherrard article
Thirty years ago the role of project manager was almost unheard of in the development industry across the world yet now virtually all significant projects in places like the United Kingdom, United States, Europe and the UAE wouldn’t consider a development without one. Client side project managers provide a de-risked pathway through the complexities of delivery for new developers and a cost efficient outcome for the experienced. Increasingly project managers also provide an auditable process for governments and a sound approach to corporate governance for multinationals in the business of investing in developments.
efficient fashion. More often than not this means delivering projects on time, within budget and to an agreed quality. In more recent years the role extends beyond this basic remit to include ensuring health and safety targets are met, financiers are comfortable and corporate principles are adhered with. Using sophisticated project management tools a client should be provided with detailed upfront planning to ensure a deliverable and buildable design which meets their objectives. This should extend to sequenced planning for all elements of a project throughout delivery, well thought out material procurement, safe and efficient work process and quality outcomes. All these leave one indelible stamp on a construction project, they add value. This value should be across the whole lifecycle of the development.
Typically client side project managers’ fees will be between 0.5 and 1.5% of the construction cost. Right up front, by establishing clear design parameters the project manager should be able to save the developer the cost of their fees. Contractors, knowing they will be administered and directed by professional firms will in most cases Why is a profession so widely utilised significantly reduce their risk allowance elsewhere, yet so infrequently adopted which they would otherwise build into their overall cost; again saving the across Asia? client considerably more than the cost of the project manager’s fees. This is not to suggest project management is languishing in At present it seems that many Asia. In places like Hong Kong developments across Asia, and Singapore, where international particularly in the developing corporations have established regions, are utilising the services regional headquarters, the practice thrives. But in other parts of Asia it of non-specialist companies or seems local developers are choosing internal employees to ‘project manage’ their investments. In not to use professional services more concerning circumstances it for project management. This is seems many developers proceed odd really as they use professional on a trust basis with their services such as stockbrokers, contractors assuming their long investment analysts and lawyers to term interests are aligned. All safeguard other investments. these options have one key flaw; they are often conflicted in their What role can project managers play, roles. Designer firms will, quite what value do they add and who is correctly, put a focus on the design presently fulfilling this role in Asia? outcome without necessarily the client’s level of concern for At its core project management has cost and programme. Conversely the role of representing the client to all other parties to ensure they achieve cost planning professionals often seek to drive all outcomes to a their development objectives in the most
rigid budget without the requisite consideration to the importance of design. The ideal team is formed when each party plays to their professional strengths. Retaining internal project managers can work for developers provided the project manager has the autonomy to run the project; this can often be politically very difficult for the hierarchical-type business structures common throughout Asia. It is the independence of the professional project managers’ role, unburdened by conflicts, operating solely in the client interest where value is maximized. Where the client / project management relationship develops over a number of projects, the value derived increases further with client objectives implicitly understood and translated to projects with increasing efficiency. Of course it is critical with this profession, as with all professional services, that a project manager is selected based on their experience and qualifications for the role in question. The project management business is not without its share of cowboys who can as quickly erode value and importantly, client reputation. Happily it seems that with the continued growth of the Asian Tigers the broader Asia market is beginning to form a maturity and a realisation of the understanding of the benefits of project management. In more and more cases it seems astute developers are relying on project managers to look after their construction investments allowing them to focus their time on the next opportunity.
James Sherrard is a senior director of Savills and head of project management for the Asia Pacific region. He has 25 years’ experience delivering projects across the world. James is currently based in Hong Kong.
The Lighthouse Club Annual Construction Conference
Legal Matters of Interest to the Construction Industry HK$500,000 raised for Lighthouse Club Hong Kong Benevolent Fund and James Battersby Lighthouse Club Educational Trust On 18th September 2013, another successful construction conference entitled: “Legal Matters of Interest to the Construction Industry” was held at the Hong Kong Convention and Exhibition Centre. The conference was organized by the Lighthouse Club Hong Kong Branch who invited prominent legal construction professionals to speak
on a wide range of topics of interest to the Construction Industry. Following his welcome and opening remarks by John Battersby, Deputy Chairman of both the Lighthouse Club Hong Kong Branch and Asia Pacific Region, the conference got underway with an Opening Keynote Address by Teresa Cheng GBS SC JP.
John Battersby then handed over to Glenn Haley, who is Secretary of the Lighthouse Club Hong Kong Branch, as moderator of the remainder of the morning’s proceedings. Then, David Bateson, Partner in Charge of King & Wood Mallesons, presented “Common Problems of Contract Formation and
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Interpretation and their Solutions”. This was followed by a presentation, entitled “Contracting in "Good Faith" (how will this work in NEC3 Contracts in Hong Kong?)”, by Damon So, Partner of Hogan Lovells, and a further presentation, entitled “Construction Insurance: Is it Worthwhile?”, by Nick Longley, Partner of Holman Fenwick Willan. Following a break for coffee and networking, there were further presentations by Alfred Wu, International Counsel Litigation of Fried, Frank, Harris, Shriver & Jacobson, on “Construction Case Law Update – Lessons to be Learned”, and Glenn Haley, Partner of Haley & Co. in association with Clayton Utz, on “Sub-Contracts – Risks and Opportunities”.
50/50 to the Lighthouse Club Hong Kong Benevolent Fund and the James Battersby Lighthouse Club Educational Trust. The Lighthouse Club is extremely grateful to everyone who contributed to a very successful conference, in particular the speakers, moderators, organizers and sponsors, and, last but not least, the delegates without whom we could not have had such a successful event.
Conference Sponsors: The Lighthouse Club is grateful for the generous support of the following sponsors:
The afternoon session was moderated by Vincent Connor, a member of the Lighthouse Club’s Hong Kong and Asia Pacific Region Committees. Papers were then presented by the following speakers: Peter Clayton, Partner of Pinsent Masons, presented a paper on “Security of Payment in Hong Kong – an Update”. Then, Henry Sherman, Senior Consultant of Minter Ellison Lawyers, gave a speech on “Doing Things Differently – a Plea in favour of Expert Determination”. This was followed by Adam Constable QC and David Thomas QC of Keating Chambers, who presented the hot NEC topics: “NEC: 5 Things to Remember” and “NEC: International Use” respectively. The day was rounded off by the ever popular panel discussion, comprising the day’s speakers. This was a marathon 1½ hours session with so much interesting debate and discussion. The conference made a profit of HK$506,513 which was donated
The Australian Construction Market Paul Roberts, Principal – Aquenta Consulting for the Lighthouse Club Magazine - Asia As the resident President of the Australian Branch otherwise known as the Down Under Club (DUC), and as we continue to expand our own footprint around Australia, I thought it timely to share some market insight with you. As I’ve worked in projects in all States and Territories, this outlook comes from my own experience, supplemented by anecdotes from industry associates with all statistical data provided from economic industry forecasters BIS Shrapnel. The change all began between 2001-2004 where low interest rates and a housing stock deficiency drove a boom in house prices and investment. Between 2004 and 2009 we saw significant investment in new economic infrastructure, a ramp up in commercial and industrial building and an increase in demand for metals and energy. After the GFC in 2008, we saw a further surge in construction activity in mining, LNG and other public sector stimulus projects spanning transport, education and health; according to BIS Shrapnel between 2009 to 2013 activity increased by $50bn.
The last 12 months has seen Australian construction work slowing sharply, but this is still in the context of an extremely high value market. And whilst the weaker growth performance and outlook for China impacted and stalled some mining projects, the strongest growth in construction work has been in the resources states and territories (Western Australia, Queensland and the Northern Territory). Construction work has also risen in predominantly non-resources states such as New South Wales and Victoria; driven by investment in education, health, transport and utilities. According to BIS Shrapnel, the subsidence of Australia’s mining construction boom is expected to drive a 20% decline in engineering construction work over the next four years. Worth bearing in mind that this is still above $100Bn per annum and that extensive work will still continue on the massive LNG projects around the country (and we’re working on nearly all of them!)
Coal seam gas drilling in the Cooper Basin in South West Queensland. © UIG via Getty Images
In the current climate, nearly all Australian governments (at State and Federal levels) are cutting expenditure to reduce deficits and debt, and even though interest rates have fallen and housing stock shortages still exist in Sydney, Perth and Brisbane, residential, commercial and industrial building markets remain subdued. The forecast for residential building is brighter though, as low interest rates, stock shortages and rising prices are reportedly expected to encourage new development; initially in Sydney and Perth, but later also in Brisbane. In the Non-residential building arena, major public investment projects and programmes in health and education will slow. All of this slow-down, according to BIS Shrapnel, will be offset by retail, accommodation and warehousing markets; all expected to be stronger performers in the next couple of years. As a country, we still face the challenge of finding and mobilising skills. The resources boom brought large volumes of regional work which presented its own challenges. Now, as the mining boom subsides, hotspots are likely to shift from mining centres like Gladstone, the Bowen Basin and the Pilbara to other areas such as Sydney – currently on the cusp of an infrastructure boom through a number of major projects including North West Rail Link, Sydney Light Rail, F3-M2 Link and WestConnex. This coupled with a potential housing boom could see skills shortages and rising costs throughout the NSW region. My colleagues and I continue to benefit from the ability to provide multi-disciplinary and multi-market support to our clients because we have offices in every Mainland State of
Australia. Organisations which offer limited services and/ or operate from only one or two State/Territory offices are more likely to experience adverse effects of changes in sector and/or geographical markets. Whilst construction activity is expected to slow over the next few years, it will still remain high by historical standards, and we are confident in our position to be able to move with the ebbs and flows that come with economic rises and falls.
Author’s Profile Paul Roberts is an Executive Leader of Aquenta Consulting and National and International Leader for our Contract, Commercial & Dispute Service Line. Through involvement in the construction industry from a very young age, Paul fast tracked his career through a natural proclivity for straight talking and a passion for problem solving. This capability has spearheaded his evolution into a global operator in the Contract, Commercial and Dispute space, whilst his ability to identify and harness high value market trends and strategic opportunities continue to deliver exceptional outcomes. Paul is an adjudicator, arbitrator, expert determiner, mediator, and a tutor and examiner at tertiary level.
Iron Ore stockpiled at Atlas Iron’s Pardoo mine in the Pilbara region of Western Australia. © Bloomberg via Getty Images
New Scholars - Philippines Students James Battersby Lighthouse Club Educational Trust (JBLHCET) approved applications endorsed by Lighthouse Club Manila Branch. Manila will contribute 10% of the total approved estimated cost of education. Vincent and Marlon Magpantay are dependent to their brother, Rosalino, who lost an arm due to electric shock in a construction site in Palawan.
Name : MARLON MAGPANTAY School : Lyceum of the Philippines - Laguna Campus Birth Date : March 8, 1992 Level (SY) : 1st Year College (SY 2013-14) Scholarship Grant – 5 Years BS CIVIL ENGINEERING “LIGHTHOUSE CLUB gives me a key to open another door of opportunity and it shows me a lighter way that will lead me to be a successful individual someday. I promise to use this opportunity to reach my dreams.” - Marlon C Magpantay
Name : JOHN VINCENT MAGPANTAY School : Lutucan National High School, Sariaya, Quezon Birth Date : June 7, 1998 Level (SY) : 3rd Year H.S. (SY 2013-14) Scholarship Grant – 2 Years High school education
“My family is very grateful for the help that the LIGHTHOUSE CLUB has given me. I promise that I will not waste this great opportunity.” - John Vincent C. Magpantay
Manila Branch has supported Rodnie’s secondary education. He wished to pursue his studies by taking up BS Education. His father was a carpenter, died in 2007. His mother works as street sweeper.
Name : RODNIE ALDEFOLLA School : Mindanao State University – Iligan Institute of Technology, Iligan City Birth Date : December 30, 1996 Level (SY) : 1st Year College (SY 2013-14) Scholarship Grant – BS EDUCATION (GEN-ED)
Manila Branch endorsed scholarship applications to James Battersby Lighthouse Club Asia Pacific Region Benevolent Trust (JBLHCAPRBT) all of which has been approved. The scholars are deeply grateful for the opportunity that Lighthouse Club has given them. Again, Manila Branch will contribute 10% of the total approved estimated cost of education.
in association with
Name : RONEL TOLING School : Lyceum of the Philippines - Cavite Campus Birth Date : October 3, 1992 Level (SY) : 1st Year (SY 2013-14) Scholarship Grant – 5 Years BS CIVIL ENGINEERING Ronel considers himself as one of the luckiest lad as he was able to finish his secondary education through a scholarship at the Sisters of Mary School. But his father’s income is not enough to support him to attend college education. He worked as carpentry assistant and prayed that another opportunity comes his way for him to have a degree. When he heard the good news, he was so happy and very thankful.
Name : HERMAN E. PALLO JR. School : Technological Institute of the Philippines Birth Date : March 30, 1993 Level (SY) : 1st Year (SY 2013-14) Scholarship Grant – 5 Years BS CIVIL ENGINEERING Herman , a bright and talented kid, received several awards during his high school. He is also a actively participating in a youth group in his community. Not only he is athletic, but a very helpful son to his parents. After class, he would work as scavenger and would sell steel and plastic to a junk shop. He also worked as a construction laborer.
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Social Event At Hooters (Moa) August 22 Manila Branch went all the way to Pasay City to be with those who are working at the casino projects at Entertainment City. Hooters at MOA by the Bay, was a perfect place to be. Plenty of good food, cold beers, and what Hooters is famous of – warm, friendly and smiling hostesses.
Sports Quiz At Howzat Sports Bar September 19 Tony Sutton, served as the quiz master. Howzat welcomed Lighthouse again with its delicious food and sporty ambiance, just perfect for a SPORTS QUIZ NIGHT. Several teams vied for the title but team PB (Parsons Brinckerhoff) emerged as champion. Each took home a free membership to Team Insider Boxing Gym. Jonathan Thorp of Howzat donated the prizes for the night.
Lighthouse Club Cambodia September Event The Lighthouse Club Cambodia held its September event at the V.I bar in Phnom Penh. The event was a huge success and we raised 50% more than we’ve done on previous occasions. We had a total of 10 new members sign up to the Club.
Around 200 business professional mainly from the construction and related industries came to support Lighthouse charity. The next event will be held on the 22nd October and we hope it will be another successful event.
We had great support from our major sponsors; Roar Promotions, North South Enterprise, SEAPS (South East Asia Property Services) and B2B Business Magazine. Many of the major sponsors provided hundreds of dollars raffle prizes – including the top prize of teeth whitening worth $200.
James Battersby Lighthouse Club Educational Trust The Phnom Penh chapter has identified two students that were previously unable to study due to a parents death. The chapter has worked with these students
to enroll in engineering programs and will now be applying to the James Battersby Educational Trust for support.
Family Fun Day - Junk Trip To Sai Kung, Hong Kong Sponsored by VSL-Intrafor, “Lighthouse Club-VSL-Intrafor-MTR Boat Trip” was held on 13 July. Treating the families (families being supported by the Lighthouse Club) and volunteers have an enjoyable and happy Saturday. This event aimed to provide social fellowship support and networking. This was a good opportunity for families with a common misfortune to have a fun day together. More than 50 people arrived Sai Kung Pier at 11am. Volunteers from MTRC SCL project designed and leaded ice-breaking games for the families and volunteers in the Junk. Of course, special prizes were presented to those performed well. Around one hour journey, we arrived a seafood restaurant at High Island in Sai Kung countryside for lunch. Before we started next activities, Mr. Lai, General Manager of VSLIntrafor and Philco Wong, Chairman
of Lighthouse Club Benevolent Committee drew the winners of the prizes. A thank you card is presented to Mr. Lai for VSL-Intrafor’s generous support of this event. Then our boat moved toward to Nan Fung Wan to do fishing and swimming. Good weather and little sunshine encouraged everybody jumping into the sea. Time went fast, few hours later, we returned to pier. On the way back, few adults felt into sleep, but children seems to have unlimited energy, they played and talked to each other. Once again, the Lighthouse Club thank you the generous donation and support of VSL-Intrafor and the support of MTR SCL project team.
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Lighthouse Club Australia News September 2013 Things continue to go from strength Perth (Western Australia). The ‘City to strength for the Australian, Down of Light’ is Located on the West Under Club (‘DUC’). Coast. Not only is it the most isolated capital city in the world but, with an For the first time the content of this average of eight hours of sunshine DUC report will not be Queensland per day, it is also the sunniest. Lead by Centric. So, to help readers who are Martin Hickson, our Perth members not familiar with the vast country have established regular get-togethers, of Australia, here’s a short DUC which are becoming increasingly geography lesson, with a few other popular. We have tried different venues facts thrown in, by City (and State). and will continue to do so before we decide which one to call home. Our Brisbane (Queensland). Located on September event was held at the Australia’s East Coast, Brisbane can Belgium Beer Cafe and October’s proudly boast that the DUC was born event will be held at 5.30pm Thursday (‘hatched’?) in this friendly and laid 25 October in ‘Rubix Bar’ at the Ibis back sub tropical ‘River City’. Thanks Hotel on Murray Street. to our June to September sponsors (GRC, McInnes Wilson, Critical Sydney (New South Wales). The Control and AMEC) our increasingly ‘Harbour City’ is located on the South popular monthly get-togethers are now East Coast almost exactly half way established for third Thursday each between Brisbane and Melbourne. month at the ‘Pav Bar’, Stamford Plaza Sydney is the site of the first European Hotel, Edward Street, Brisbane. colony in Australia (in 1788) and home to the world famous Opera House. Melbourne (Victoria). What has The Sydney DUCs are lead by Richard been referred to as the ‘Liveable City’ Inman, with support from others who is located on the South East Coast, will be showcased in future reports. about 900 km South West of Sydney. With thanks to our sponsors (ICMG Boasting the largest tram system and Kann Finch in September) getoutside Europe, one of the many other togethers are now firmly established for notable facts of this metropolis is that the third Thursday each month, at The it also the ‘fox capital of the world’, Bar, Sir Stamford, at Circular Quay, 93 with between 6 and 23 foxes per square Macquarie Street. We hope to be able kilometre in the urban area of the city. to publish photos of Sydney events in subsequent issues of the magazine. Our Melbourne team are currently working on a number of activities and Finally, we would remind you to visit establishing regular get-togethers. our website and give us any feedback in We aim to feature Melbourne as the order to help us improve its content. showcase in our next report. In the meantime, for details of events in www.lighthouseclubaus.org Melbourne, keep checking our website.
“One is for a friend”
A shining beacon in the construction world. And a LHC flyer
We are delighted to announce that King & Wood Mallesons collected â€œConstruction Law Firm of the Yearâ€? award at the 2013 ALB Hong Kong Law Awards. To pick up this award once again is a point of pride for the team and a strong nod of recognition to the calibre of our Hong Kong construction practice.
Thank-you for your trust and support!
Paul Starr Partner, Hong Kong T + 852 3443 1118 David Bateson Partner, Hong Kong T +852 3443 1018 Edmund Wan Partner, Hong Kong T +852 3443 1119
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Forthcoming Events December 2013 Thursday 5 Singapore Christmas Party
Wednesday 11 Macau Social Get Together
Thursday 12 Manila Get Together
2/F Penny Black, Boat Quay, from 7pm
R Bar, Hard Rock Hotel, City of Dreams from 6.30pm
Murphy’s Irish Pub
Kuala Lumpur Social Night
Bangkok Networking Evening
Sid’s Pub Plaza Damansara, from 6.30pm
Clubhouse Bar, Sukhumvit Soi 23
Friday 6 Hong Kong Monthly Get Together
Thursday 12 Ho Chi Minh City Networking Drinks
Insiders, Wanchai, from 6.30pm
Thursday 19 Brisbane Networking Event Pav Bar - Stamford Plaza, Corner Margaret & Edward Street from 5.30pm
Sydney Networking Event
Red Bar, 70 Ngo Duc Ke, District 1 from 6.00pm
Sir Stamford Hotel, Circular Quay from 5.30pm
Thursday 9 Ho Chi Minh City Networking Drinks
Thursday 16 Brisbane Networking Event
Thursday 2 Singapore Monthly Get Together 2/F Penny Black, Boat Quay, from 7pm
Kuala Lumpur Social Night Sid’s Pub Plaza Damansara, from 6.30pm
Wednesday 8 Bangkok Networking Evening Clubhouse Bar, Sukhumvit Soi 23
Red Bar, 70 Ngo Duc Ke, District 1 from 6.00pm
Friday 10 Hong Kong Monthly Get Together Insiders, Wanchai, from 6.30pm
Wednesday 15 Kuala Lumpur Social Night
Pav Bar - Stamford Plaza, Corner Margaret & Edward Street from 5.30pm
Manila Get Together German Club
Sydney Networking Event Sir Stamford Hotel, Circular Quay from 5.30pm
Macau Social Get Together
Saturday 25 Asia Pacific Region Committee Meeting
R Bar, Hard Rock Hotel, City of Dreams from 6.30pm
Thursday 6 Singapore Monthly Get Together
Wednesday 12 Macau Social Get Together
Thursday 20 Brisbane Networking Event
Ballymoons, Orchard Hotel, from 7pm
R Bar, Hard Rock Hotel, City of Dreams from 6.30pm
Kuala Lumpur Social Night
Bangkok Networking Evening
Pav Bar - Stamford Plaza, Corner Margaret & Edward Street from 5.30pm
Sid’s Pub Plaza Damansara, from 6.30pm
Clubhouse Bar, Sukhumvit Soi 23
Sid’s Plaza Damansara, from 6.30pm
Sydney Networking Event Sir Stamford Hotel, Circular Quay from 5.30pm
Friday 7 Hong Kong Monthly Get Together Insiders, Wanchai, from 6.30pm
Thursday 13 Ho Chi Minh City Networking Drinks Red Bar, 70 Ngo Duc Ke, District 1 from 6.00pm
Manila Get Together Venue TBA
Friday 21 Hong Kong Chinese New Year Dinner Hong Kong Jockey Club
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