the lighthouse - autumn 2013

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Interview with MTRC Projects Director Mr TC ChewThe Lighthouse Club farewells friend and safety campaigner Derek SmythHousing Authority commited to improved site safetyOpinion - industry professionals share their viewsThe Lighthouse Club Annual Construction ConferenceThe Australian Construction Market, by Paul RobertsPhilippines new scholarsA look at regional social eventsAustralian NewsUpcoming Regional Events

In This Issue

Chairman’s Message

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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 2013The Lighthouse Club Asia Pacific RegionSuite 1901-2, Hopewell Centre, 183 Queens Road East, Wanchai, Hong Kong

Tel : +852 2736 9885Fax : +852 2687 [email protected]

Administration Secretary : Ms Elaine Man

Published by ROF Media Publisher : Mike StaleyDesigner : Parnell Chan E : [email protected] : +852 3150 8988

Executive Committee

ChairmanSteven TennantImmediate Past Chairman Mike MclverChairman Elect (to be elected)Deputy ChairmanJohn Battersby

BangkokJonathan [email protected]

Ho Chi Minh CityColin [email protected]

Hong KongJohn Battersby, Les Leslie, Barry [email protected]

Kuala LumpurH.T. [email protected]

MacauKeith Buckley, Adrian [email protected]

ManliaPhil [email protected]

Phnom Penh(to be elected)

SingaporeJohn Davies, Willie Kay, Brian [email protected]

AustraliaPaul [email protected]

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.

Steve Tennant

The Lighthouse is online at www.issuu.com/rofmedia

Content 03

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 company’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.

Images courtesy of MTRC.

SafetyBegins With

Me

06 Interview

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.

The Client-Developer Award recognises the MTR’s overall leadership role in the construction industry and the company’s passion for health and safety. The most welcomed innovation was a focus on improving the working lives and conditions of frontline construction personnel, and the rapid rate of improvement, the judges said. The award was accepted by projects safety manager Steve Howarth and projects director TC Chew.

Mr Chew later claimed the Lighthouse Club’s Golden Helmet award. The award recognises his efforts in promoting safety in its widest sense, both throughout an organisation and across the wider industry.

“I’m particularly happy to get this recognition as this is an endorsement that the MTR and the team of people with me who believe in promoting safety in construction are moving in the right direction,” he said.

“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.”

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 joined MTR Corp in 2010 with a resume that included stints with the Land Transport Authority in Singapore, and responsibility for Bombardier Transportation projects in Kuala Lumpur, Seoul and London.

In Singapore he took charge of road and rail projects that were some of the Lion City’s biggest works projects of the century. He enjoyed a key role in introducing the first automated, driverless North East Line for the Singapore MRT.

There were also leadership roles in several light rail projects, the city’s Circle Line projects and the extension of the city’s East West Line past Changi Airport.

As a major engineering client in Hong Kong, the MTR has the power to dramatically improve its safety standards and cause a knock-on effect

(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 Mr T.C. Chew

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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.

Mr Chew told PRC Magazine that the awards reflected the company’s collaborative approach to safety, which involved MTR, its contractors and partners.

“I like to push two basic things that we have done for our people and we remind one another constantly. One is a little phrase, ‘safety begins with me’, and the other is ‘don’t walk by’,” Mr Chew said. “These two ideas enshrine our philosophies of caring for workers and improving their safety.”

It is a holistic approach to safety minimising risk for self and for others, by empowering workers to assume responsibility for their fellow worker’s health. Mr Chew said the net result was a combination of trust, empowerment and correction without punitive action by the MTR that “creates a momentum of wanting to do more” between the company, contractor and workers. He calls it Safety Starts With Me.

Interview 07

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.

The MTR has launched a number of safety initiatives in the past 12 months that were recognised by the judging panel as industry best practice. Indeed, the MTR has captured imaginations with two industry-wide firsts. The judging panel was impressed by the MTR’s initiative in introducing the project-wide Heat Stress Prevention Guidelines. They are the first construction company in Hong Kong with such guidelines.

The Heat Stress Prevention Campaign gives workers an additional 15 minutes’ break both in the morning and afternoon on days when the Hong Kong

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 fatigue increases. “It was one of the concerns we had. With an ageing construction population, hard work under the hot sun is not necessarily an ideal environment,” he said.

Then there is the provision of a Workers Life Insurance Scheme, a mandatory policy for all workers on MTR’s project sites, up to age 69, as well as to cover ancillary staff, cleaners and security guards. Launched last year, the scheme provides HK$200,000 for the family, should a worker die whilst in the company’s employment.

Mr Chew said the insurance 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

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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. 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.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.Bridge deck construction across Aberdeen Channel for the railway viaduct is in progress.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.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.

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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 risk-assessment 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.

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.

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.”

Interview 09

{Tireless campaigner

for improved industry

safety

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 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.

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.

10 Feature

Feature 11

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MTR Project Division Management Team with MTRC CEO Jay H. Walder (centre) and T.C. Chew, Projects Director, MTRC (centre-left) Steve S. Howarth, MTRC S.S. Tai, DSD (right) T.C.Chew, MTRC; Ian Askew, Lambeth; Ted Lawton, Lambeth

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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

12 Feature

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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.

“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 near-miss incidents are reported.”

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

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.

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.

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.

Feature 13

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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14 Feature

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

Winners of the Contractor’s Safety Awards

An expanded report on these Awards will be published in the winter edition of The Lighthouse magazine.

Chairman’s Award: Gabriel Y.W. So, Superintendent, Leighton Contractors (Asia) Limited

Safe Project Team Award: Express Rail Link Contract XRL811A West Kowloon Terminus Approach Tunnel (North) – Mass Transit Railway Corporation, Bachy-Soletanche-Laing O’Rourke Joint Venture

Safe Sub-contractor Award: Craft Projects International Co Ltd.

Safety Professional Award: Mr. Wai Yan AU

Safe Foreman Award: Mr. Po Kuen TO

The Lighthouse Club remains committed to the continued monitoring and improvement of safety standards across the construction industry. To this end we value the ongoing support of all industry players in our efforts to guaranteeing the health and safety of all who work in this dynamic industry and play a pivotal role in shaping our city into the future.

Feature 15

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 accident-free construction of these seemingly endless tower blocks, whilst at the same time influencing constantly improving standards across the local construction industry.

Ms Ada Fung and other department

staff attend a condensed site safety

training course for directorates

Images courtesy Hong Kong Housing Authority.

Safety Feature 17

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.

This has been achieved through the introduction of practical measures, such as hard paved construction, surveillance plus administrative measures for tower-crane lifting, and intensified fall protection for lift shaft work, which go hand in hand with the tightening of safety audits and safety performance assessments, together with the implementation of quarantines for tenders if tenderers or contractors breach safety guidelines or are found involved in specific onsite incidents.

The Housing Authority implements a policy of encouraging contractors

to improve and excel in onsite performance by strict adherence to its “five-ZERO” formula, namely ZERO accidents, ZERO incidents, ZERO convictions, ZERO complaints and ZERO disputes, and works tirelessly to raise onsite standards and performance and to foster best practices as applied by contractors throughout the procurement process, commencing with the selection of tenderers, the monitoring of contractors’ performance, motivating those who perform and also sanctioning those who fail in their obligations to HA and the industry as a whole.

Specific new HA measures have been applied across the board at all HA project sites to further secure its notable zero-accident record.

18 Safety Feature

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.

Additional innovations

Speaking on behalf of HA, Housing Authority Senior Manager Safety and

Proper PPE for chiselling works Workers wear safety belts with independent safety ropes while 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

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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.

“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.”

“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 the Safety Audit Management Office of the Occupational Safety and Health Council.”

Additional recent examples of innovative initiatives introduced in relation to onsite safety include the safe fabrication of large diameter bored piles in factories with tailor-made machines, together with an automatic robotic welding arm, the enhanced efficiency of fabrication

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.

“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.”

It’s all TEAMwork

Ms Ching explains that at HA, the term “TEAM’ refers to “Together Everyone Achieves More”, and onsite safety training programmes are conducted for resident site staff, professionals and technical works staff, as well as professional service providers in a bid to strengthen core competencies.

“We promote a continuous process of educating our staff and business

Safety Feature 19

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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.”

Large steel formwork working platform with wire mesh fencing Proper barriers provided for electric arc welding Safe fabrication of large diameter bored pile in factory by machine with 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

Terry, K.C. Ching, Housing Authority Senior Manager Safety and Health

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20 Safety Feature

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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.

Why is a profession so widely utilised elsewhere, yet so infrequently adopted across Asia?

This is not to suggest project management is languishing in Asia. In places like Hong Kong and Singapore, where international corporations have established regional headquarters, the practice thrives. But in other parts of Asia it seems local developers are choosing not to use professional services for project management. This is odd really as they use professional services such as stockbrokers, investment analysts and lawyers to safeguard other investments.

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James Sherrard article

Managing Projects

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 significantly reduce their risk allowance which they would otherwise build into their overall cost; again saving the client considerably more than the cost of the project manager’s fees. At present it seems that many developments across Asia, particularly in the developing regions, are utilising the services of non-specialist companies or internal employees to ‘project manage’ their investments. In more concerning circumstances it seems many developers proceed on a trust basis with their contractors assuming their long term interests are aligned. All these options have one key flaw; they are often conflicted in their roles. Designer firms will, quite correctly, put a focus on the design outcome without necessarily the client’s level of concern for cost and programme. Conversely cost planning professionals often seek to drive all outcomes to a

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.

Opinion 25

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Advert Lighthouse Club [210mm x 135mm] October 2013.indd 1 10/7/2013 10:51:22 AM

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

The Lighthouse Club Annual Construction ConferenceLegal Matters of Interest to the Construction Industry

26 Conference

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”.

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

SILVER SPONSORS

BRONZE SPONSORS

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:

Conference 27

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 Australian Construction MarketPaul Roberts, Principal – Aquenta Consulting for the Lighthouse Club Magazine - Asia

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

28 Regional Focus

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

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.

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.

Iron Ore stockpiled at Atlas Iron’s Pardoo mine in the Pilbara region of Western Australia. © Bloomberg via Getty Images

Regional Focus 29

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.

New Scholars - Philippines Students

Name : JOHN VINCENT MAGPANTAYSchool : Lutucan National High School, Sariaya, Quezon Birth Date : June 7, 1998Level (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

Name : MARLON MAGPANTAYSchool : Lyceum of the Philippines - Laguna CampusBirth Date : March 8, 1992Level (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 : RODNIE ALDEFOLLASchool : Mindanao State University –

Iligan Institute of Technology, Iligan City Birth Date : December 30, 1996Level (SY) : 1st Year College (SY 2013-14)Scholarship Grant – BS EDUCATION (GEN-ED)

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.

30 Students

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

HK_Lighthouse_Club_A6_Oct_2013.indd 1 16/10/2013 12:11:15 PM

Name : HERMAN E. PALLO JR.School : Technological Institute of the PhilippinesBirth Date : March 30, 1993Level (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.

Name : RONEL TOLINGSchool : Lyceum of the Philippines - Cavite CampusBirth Date : October 3, 1992Level (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.

32 Students

Hong KongAsgard Project Solutions Ltd

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SingaporeAsgard Project Solutions (PTE.) Ltd

China Square Central, 3 Pickering Street #02-29 Singapore 048660

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August 22Manila 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.

September 19Tony 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.

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.

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.

Social Event At Hooters

(Moa)

Sports Quiz At Howzat Sports Bar

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.

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.

Lighthouse Club Cambodia September Event

34 Social

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 VSL-Intrafor and Philco Wong, Chairman

Family Fun Day - Junk Trip To Sai Kung, Hong Kong

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.

Social 35

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SITE MANAGER (T.B.A.)

Things continue to go from strength to strength for the Australian, Down Under Club (‘DUC’).

For the first time the content of this DUC report will not be Queensland Centric. So, to help readers who are not familiar with the vast country of Australia, here’s a short DUC geography lesson, with a few other facts thrown in, by City (and State).

Brisbane (Queensland). Located on Australia’s East Coast, Brisbane can proudly boast that the DUC was born (‘hatched’?) in this friendly and laid back sub tropical ‘River City’. Thanks to our June to September sponsors (GRC, McInnes Wilson, Critical Control and AMEC) our increasingly popular monthly get-togethers are now established for third Thursday each month at the ‘Pav Bar’, Stamford Plaza Hotel, Edward Street, Brisbane.

Melbourne (Victoria). What has been referred to as the ‘Liveable City’ is located on the South East Coast, about 900 km South West of Sydney. Boasting the largest tram system outside Europe, one of the many other notable facts of this metropolis is that it also the ‘fox capital of the world’, with between 6 and 23 foxes per square kilometre in the urban area of the city.

Our Melbourne team are currently working on a number of activities and establishing regular get-togethers. We aim to feature Melbourne as the showcase in our next report. In the meantime, for details of events in Melbourne, keep checking our website.

Perth (Western Australia). The ‘City of Light’ is Located on the West Coast. Not only is it the most isolated capital city in the world but, with an average of eight hours of sunshine per day, it is also the sunniest. Lead by Martin Hickson, our Perth members have established regular get-togethers, which are becoming increasingly popular. We have tried different venues and will continue to do so before we decide which one to call home. Our September event was held at the Belgium Beer Cafe and October’s event will be held at 5.30pm Thursday 25 October in ‘Rubix Bar’ at the Ibis Hotel on Murray Street.

Sydney (New South Wales). The ‘Harbour City’ is located on the South East Coast almost exactly half way between Brisbane and Melbourne. Sydney is the site of the first European colony in Australia (in 1788) and home to the world famous Opera House. The Sydney DUCs are lead by Richard Inman, with support from others who will be showcased in future reports. With thanks to our sponsors (ICMG and Kann Finch in September) get-togethers are now firmly established for the third Thursday each month, at The Bar, Sir Stamford, at Circular Quay, 93 Macquarie Street. We hope to be able to publish photos of Sydney events in subsequent issues of the magazine. Finally, we would remind you to visit our website and give us any feedback in order to help us improve its content.

www.lighthouseclubaus.org

Lighthouse Club Australia News September 2013

“One is for a friend”

A shining beacon in the construction world. And a LHC flyer

News 39

Thank-you for your trust and support!

We are delighted to announce that King & Wood Mallesons collected “Construction Law Firm of the Year” 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.

Paul StarrPartner, Hong KongT + 852 3443 1118

David BatesonPartner, Hong KongT +852 3443 1018

Edmund WanPartner, Hong KongT +852 3443 1119

www.kwm.com

The Contracts Group specialises in the provision of expert consultancy services for the construction industry in Hong Kong, China, Asia and worldwide in the following fields:

Pre-Contract Services & Project Management • Bid and Pre-Contract Management • Tender Documentation Preparation, Tender Programming • Contract and Sub-Contract Advice, Review and/or Negotiation • Guidance and Advice on means of Contract Procurement • Joint Venture Agreements • BIM / 3D Modelling / Co-ordination services • Preparation of Quantities

Claims, Contractual and Dispute Management Arbitration, Adjudication and Litigation Support Claim Management, Identification, Preparation, Defence, Negotiation and Settlement Delay Analysis and Programming Dispute Management, Avoidance and Resolution Expert Reports Forensic Investigations and Contractual Analysis Mediation Quantum Analysis & Quantity Surveying Issues Tribunal Expert and Independent Assessor

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THE CONTRACTS GROUP LTD. Commercial, Contractual & Management Consultants To the construction industry

For enquiries contact our Executive Directors : Chris Morgan, Colin B. Lee, Peter L. K. Tang Tel : (852) 2529 1696, Fax: (852) 2866 2725, Email : [email protected], Web : www.contractsgroupltd.com

Chris Morgan

Colin B. Lee

Peter L. K. Tang

Forthcoming Events

Thursday 5Singapore Christmas Party2/F Penny Black, Boat Quay, from 7pm

Kuala Lumpur Social Night Sid’s Pub Plaza Damansara, from 6.30pm

Friday 6Hong Kong Monthly Get TogetherInsiders, Wanchai, from 6.30pm

December 2013

Thursday 2Singapore Monthly Get Together2/F Penny Black, Boat Quay, from 7pm


Wednesday 8Bangkok Networking EveningClubhouse Bar, Sukhumvit Soi 23

January 2014

Thursday 6Singapore Monthly Get TogetherBallymoons, Orchard Hotel, from 7pm



February 2014

Wednesday 11 Macau Social Get TogetherR Bar, Hard Rock Hotel, City of Dreams from 6.30pm

Bangkok Networking EveningClubhouse Bar, Sukhumvit Soi 23

Thursday 12Ho Chi Minh City Networking DrinksRed Bar, 70 Ngo Duc Ke, District 1from 6.00pm

Thursday 12Manila Get TogetherMurphy’s Irish Pub

Thursday 19Brisbane Networking EventPav Bar - Stamford Plaza, Corner Margaret & Edward Street from 5.30pm

Sydney Networking EventSir Stamford Hotel, Circular Quay from 5.30pm

Thursday 9 Ho Chi Minh City Networking DrinksRed Bar, 70 Ngo Duc Ke, District 1 from 6.00pm


Wednesday 15 Kuala Lumpur Social Night Sid’s Plaza Damansara, from 6.30pm

Macau Social Get TogetherR Bar, Hard Rock Hotel, City of Dreams from 6.30pm


Manila Get TogetherGerman Club

Sydney Networking EventSir Stamford Hotel, Circular Quay from 5.30pm

Saturday 25Asia Pacific Region Committee MeetingPhnom Penh

Wednesday 12Macau Social Get TogetherR Bar, Hard Rock Hotel, City of Dreams from 6.30pm

Bangkok Networking EveningClubhouse Bar, Sukhumvit Soi 23

Thursday 13Ho Chi Minh City Networking DrinksRed Bar, 70 Ngo Duc Ke, District 1 from 6.00pm


Sydney Networking EventSir Stamford Hotel, Circular Quay from 5.30pm Manila Get TogetherVenue TBA

Friday 21Hong Kong Chinese New Year DinnerHong Kong Jockey Club

42 Regional Events

[email protected] www.cssp.biz

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financial accounting //

payroll //

sub-contractor management //

variation management //

earned value //

progress claims //

the lighthouse - autumn 2013

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