of the pacific association of quantity surveyors (paqs) · the pacific association of quantity...

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YQSG Newsletter 2013 Second Issue YQSG Program 2013 - Xi’an, China.......! Young Quantity Surveyors Group (YQSG) of the Pacific Association of Quantity Surveyors (PAQS) Editor & Designer: Prasath Sanjeewa Vice-Chairman, PAQS - YQSG Institute of Quantity Surveyors- Sri Lanka In this Issue..... YQSG Programme 2013 - Xi’an, China ...........Page 1 About YQSG......................................................Page 4 Chairman’s Message .......................................Page 5 Articles: Participating Member: Singapore The Power of Early Contractor Involvement: By Seah Hsiu Min Eugene.....................................Page 6 Participating Member: Hong Kong Recent Cost Trend in Hong Kong: By Joseph Chong .................................................Page 8 Participating Member: Malaysia Short Case Study on Hospital Kuala Lumpur Specialist Complex and Amulatory Care Centre (HKL SCAACC): By Sr Shazali Sulaiman, Sr Yeap Soon Kiat............ Page 10 Participating Member: Philippines Why Phillippines is Now Opting for “Green” Building: By Jose Fernando Magsi, Haira Alilio....................Page 18 Articles (Cont’d): Participating Member: Brunei Latest Project Development and Construction Cost Trend in Brunei: By Mohammad Eddie Bin Wasli................................ Page 20 Participating Member: Sri Lanka Construction Industry, Quantity Surveyors and Software in Sri Lanka: By V.D. Kahandawa....................................................Page 21 Participating Member: Sri Lanka Tender Submissions: By C.B. Allis..............................................................Page 22 Participating Member: China Introduction to“Guidance of Practice for Project Management for Construction Projects (First Edition, Shanghai)”: By Annabella Wu......................................................Page 23 Participating Member: China Latest Project Development and Construction Cost Trend in China: By Gu Xiaohui..........................................................Page 25 YQSG Program 2014 - Hong Kong............................. Page 30 Stay Connected......................................................Page 31 Disclaimer: The opinions or views in the Articles published in this newsletter are those of the authors and do not reflect the opinions and recommendations of PAQS and respective institutes. Young QS Group Programme of year 2013 was successfully held in Xi’an, China on 17 th and 8 th May 2013 with the participation of about 32 young members and students from 9 PAQS member countries (Representatives from AIQS, BSIJ, CECA, HKIS, IQSSL, PCIQS, PUJA, RISM and SISV were participated) CECA (Shanghai branch) was the host of the YQSG programme this year. Different from previous years, this year YQSG Progamme had lasted for two days. First Day of the program included a relaxing guided tour to the Terracotta Warriors, ShaanXi Historical Museum and the Wild Groose Pagoda. On Second Day morning session, there were presentations from each country about cost trend and latest development projects in a local cost consultants office (San Qian Company). In the evening session participants visited the Creative Pavilion in the Xi’an China International Horticultural Exposition (EXPO). At night the participants joined the dinner at Xi’an Hotel and tasted the local cuisines.

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Page 1: of the Pacific Association of Quantity Surveyors (PAQS) · The Pacific Association of Quantity Surveyors (PAQS) is an international association of national organizations representing

YQSG Newsletter 2013 Second Issue

YQSG Program 2013 - Xi’an, China.......!

Young Quantity Surveyors Group (YQSG)of the Pacific Association of Quantity Surveyors (PAQS)

Editor & Designer:

Prasath Sanjeewa Vice-Chairman, PAQS - YQSGInstitute of Quantity Surveyors- Sri Lanka

In this Issue.....

YQSG Programme 2013 - Xi’an, China ...........Page 1

About YQSG......................................................Page 4

Chairman’s Message .......................................Page 5

Articles:

Participating Member: Singapore The Power of Early Contractor Involvement: By Seah Hsiu Min Eugene.....................................Page 6

Participating Member: Hong KongRecent Cost Trend in Hong Kong:By Joseph Chong .................................................Page 8

Participating Member: Malaysia Short Case Study on Hospital Kuala Lumpur Specialist Complex and Amulatory Care Centre (HKL SCAACC):By Sr Shazali Sulaiman, Sr Yeap Soon Kiat............ Page 10

Participating Member: Philippines Why Phillippines is Now Opting for “Green” Building:By Jose Fernando Magsi, Haira Alilio....................Page 18

Articles (Cont’d):

Participating Member: Brunei Latest Project Development and Construction Cost Trend in Brunei:By Mohammad Eddie Bin Wasli................................ Page 20

Participating Member: Sri Lanka Construction Industry, Quantity Surveyors and Software in Sri Lanka:By V.D. Kahandawa....................................................Page 21

Participating Member: Sri Lanka Tender Submissions:By C.B. Allis..............................................................Page 22

Participating Member: ChinaIntroduction to “Guidance of Practice for Project Management for Construction Projects (First Edition, Shanghai)”:By Annabella Wu......................................................Page 23

Participating Member: China Latest Project Development and Construction Cost Trend in China:By Gu Xiaohui..........................................................Page 25

YQSG Program 2014 - Hong Kong............................. Page 30

Stay Connected......................................................Page 31

Disclaimer:The opinions or views in the Articles published in this newsletter are those of the authors and do not reflect the opinions and recommendations of PAQS and respective institutes.

Young QS Group Programme of year 2013 was successfully held in Xi’an, China on 17th and �8th May 2013 with the participation of about 32 young members and students from 9 PAQS member countries (Representatives from AIQS, BSIJ, CECA, HKIS, IQSSL, PCIQS, PUJA, RISM and SISV were participated)

CECA (Shanghai branch) was the host of the YQSG programme this year. Different from previous years, this year YQSG Progamme had lasted for two days.

First Day of the program included a relaxing guided tour to the Terracotta Warriors, ShaanXi Historical Museum and the Wild Groose Pagoda.

On Second Day morning session, there were presentations from each country about cost trend and latest development projects in a local cost consultants office (San Qian Company). In the evening session participants visited the Creative Pavilion in the Xi’an China International Horticultural Exposition (EXPO).

At night the participants joined the dinner at Xi’an Hotel and tasted the local cuisines.

Page 2: of the Pacific Association of Quantity Surveyors (PAQS) · The Pacific Association of Quantity Surveyors (PAQS) is an international association of national organizations representing

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YQSG Program 2013 - Xian, China Cont’d

Group Photo - 2013 YQSG

Tour to Terracotta warriors

City Tour

Visit to Wild Pagoda Dinner

Presentation Sessions

Visit to Creative Pavilion, Horticultural EXPOGroup Games (Tea making)

Presentation Sessions

Presentation Sessions

Page 3: of the Pacific Association of Quantity Surveyors (PAQS) · The Pacific Association of Quantity Surveyors (PAQS) is an international association of national organizations representing

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Presentations By Particiating Countries

YQSG Program 2013 - Xian, China Cont’dGift Exchange

Page 4: of the Pacific Association of Quantity Surveyors (PAQS) · The Pacific Association of Quantity Surveyors (PAQS) is an international association of national organizations representing

About PAQS - YQSG

The Current Members of PAQS are:

FULL MEMBER

- Australian Institute of Quantity Surveyors (AIQS) - Building Surveyors Institute of Japan (BSIJ) - Canadian Institute of Quantity Surveyors (CIQS) - China Engineering Cost Association (CECA) - The Hong Kong Institute of Surveyors (HKIS) - New Zealand Institute of Quantity Surveyors (NZIQS) - Singapore Institute of Surveyors & Valuers (SISV) - Institute of Quantity Surveyors Sri Lanka (IQSSL) - Royal Institution of Surveyors Malaysia (RISM)- Institution of Surveyors, Engineers and Architects, Brunei (PUJA)

The Pacific Association of Quantity Surveyors (PAQS) is an international association of national organizations representing Quantity Surveyors in the Asia and Western Pacific region.

The Missions of the PAQS are:

- The promotion of the practice of Quantity Surveying in the region.

- The promotion of “best practice” for Quantity Surveying in the region.

- The promotion of dialogue between member organizations.

- Encouragement of regional cooperation in the practice of Quantity Surveying.

- Fostering of research appropriate to the better understanding of building practice in the region.

- Rendering of assistance to members of member organizations working in each other’s countries.

ASSOCIATE MEMBER

- Fiji Institute of Quantity Surveyors (FIQS)

- Philippine Institute of Certified Quantity Surveyors (PICQS)

OBSERVER MEMBER

- Association of South African Quantity Surveyors (ASAQS)

On 15 August 2009, young members from PAQS country members attended the Sustainability Committee Meeting at Kuala Lumpur and formed the first Young Quantity Surveyors Group committee. This committee was subsequently appointed by the PAQS Board under PAQS Constitution article 3.2.

Quantity surveying students and members under 40 years of age from PAQS representing countries are encouraged to join YQSG.

YQSG Program has been held in following countries:2010 - Singapore2011 - Sri Lanka2012 - Brunei2013 - China

Year 2014 program will be held in Hong Kong SAR, China

The YQSG is a good platform to promote Quantity Surveying as a career choice for school leavers and university students.

••••

Page 5: of the Pacific Association of Quantity Surveyors (PAQS) · The Pacific Association of Quantity Surveyors (PAQS) is an international association of national organizations representing

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Sr JOSEPH CHONG Chairman Young Quantity Surveyors Group 2009 - 2014, PAQS

BSc(Surv)(HKU), MSc(IDM)(HKU), MHKIS, RPS(QS), MHKICM, MHKIVM, BEAM PRO (Incl. BI)

Chairman’s messageOn behalf of the Young Quantity Surveyors Group of PAQS, I am glad to present to you the 2nd issue of 2013 PAQS YQSG newsletter.

In Hong Kong, the 1st International BIM Conference related to Quantity Surveying was held in Nov. Representatives from Malaysia, Singapore and Sri Lanka attended the conference and shared their use of BIM. Our Past Vice Chairman Mr Eugene Seah also came to Hong Kong and presented a paper named “The QS Journey in Singapore – Lessons Learnt ”. On one hand BIM technology is moving in a fast pace, our contract documents and measurement rules must also be developed to enhance our efficiency and accuracy in estimating and controlling construction costs. I believe our young quantity surveyors around the world should take the lead to adopt new technologies and drive the change in our quantity surveying practice.

Our next young programme will be held in Hong Kong on 6-7 June 2014. We will have informal presentations by young representatives of each PAQS country members. Also, we will arrange site visits and a special tram tour of Hong Kong Island. Our tram expert Sr Alan Cheung will introduce the history of Hong Kong trams and surrounding architecture. As the host of this event, I would like to sincerely invite you to come to Hong Kong and participate PAQS 2014 Congress as well as the young programme (if you are under 40).

In this issue of newsletter, we have articles from different countries on various areas:

THE POWER OF EARLY CONTRACTOR INVOVEMENT by Eugene Seah

Recent Cost Trend in Hong Kong by myself

Short case study on Hospital Kuala Lumpur Specialist Complex & Ambulatory Care Centre (HKL SCACC) by Sr Amnah Salleh, Sr Shazali Sulaiman and Sr Yeap Soon Kiat of RISM JO, Malaysia

Why Philippines is now opting for “Green” Buildings by Jose Fernando Magsi and Haira Alilio Centralized Membership Committee, PICQS, the Philippines

‘Latest Project Development and Construction Cost Trend’ in Brunei By Mohammad Eddie Bin Wasli, PUJA-Brunei

Construction Industry, Quantity Surveyors and Software in Sri Lanka by V.D Kahandawa, University of Moratuwa, Sri Lanka

Tender Submissions By C.B. Allis, University of Moratuwa, Sri Lanka

Latest Project Development and Construction Cost Trend In China by Gu Xiaohui, China

Introduction of Guidance of Practice for Project Management for Construction Projects by Annabella Wu, China

Enjoy reading!

Page 6: of the Pacific Association of Quantity Surveyors (PAQS) · The Pacific Association of Quantity Surveyors (PAQS) is an international association of national organizations representing

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THE POWER OF EARLY CONTRACTOR INVOVEMENT Introduction

In the third quarter of year 2011, the Building & Construction Authority of Singapore put forward a scheme called the Early Contractor Involvement or ECI. This is a scheme whereby Contractors or a Contractor is invited early in the design stage or engaged longer in the tender period to seek clarification on design, safety, constructability and buildability, to name a few.

The main ethos of this is to seek advice from the party who knows best about construction risk, safety and methodology, and that party is the Main Contractor. In essence, all these factors also boil down to construction cost and speed hence we consider them as important drivers for success. The main objectives of the ECI process are to:

Shorten tender periodSeek their views on construction methodologySeek their views on buildability and constructability and other salient issuesSeek their views on time lines and programSeek their views on VM/ VE, embellishments to design To get to know the contractor and his team betterPromote Partnering concepts but in a tendering environment

This paper discusses Langdon & Seah’s experience in the use of ECI and discusses the processes proposed by us in our projects.

As a summary, the use of ECI has been very successful of which the applications have dated back to the early 1990s. One of the bigger projects would include the original extension of a large retail project at Orchard Road. The latest projects would include a skyscraper Office in the Central Business District and a Pre-Engineered Factory and Research and Development building at Tuas. Our experience of Contractors include both local and foreign Contractors but is centred on more of the bigger Contractors.

••

When it started?

In the early 1990s, Mr Seah Choo Meng started the process of working with the Contractors in either a Pre-qualification or Tender environment to seek Contractor’s views and opinions on cost drivers and also, to understand the Contractor’s concerns and construction team better. There are times that a project may be straight forward but the “people” factor may complicate the project process hence it is very important that the entire project team has to be of the same mind and drive. At the time, we called in the Advance Information Package or AIP and the success factors then and now remain. However, with the increase requirement on Constructability, Buildability, Green Mark, Safety and the need for productivity, the use of the AIP or ECI process becomes more and more important, and that is to engage the Contractor early.

In our experience, ECI can be used on both form of procurement such as the traditional lump sum tender and the Develop & Construct (or Design & Build). However, it is observed that the Develop & Construction (D&C) form of procurement seems to yield better result. This could be a fact that the Contractor, who takes over the Mechanical & Electrical Engineering and the Civil & Structural Engineering scope of work, together with his in-house design and construction management team, can come up with more efficient design that contributes to the efficacy of the construction and design management process on site.

With the use of Building Information Modelling (BIM), Contractors can, during the ECI period, model their building up to LOD 200 and some families to LOD 300, to carry level 1 clash detections and as well a simulations such as sustainability and scheduling (using Time liner). So, all in all, we can see that Contractors who uses BIM for the construction work can benefit greatly from the use of these software.

It has to be noted that ECI can be used for most types of building typologies but not suitable for projects that have

no clear project brief or Employer’s requirements.

What is the process?

The first section discusses on the ECI that we have been involved in for the PRIVATE sector. Prior to the ECI process, it is preferred to have a proper Prequalification (PQ) exercise to select the best Contractors to tender for the project. The PQ exercise can cover basic issues like experience, legal standing, finance and available manpower. But these are only entry level issues and not project specific issues.

With a formal PQ grading and evaluation process, 2-4 Contractors are selected to enter into the next stage of the ECI process. In most of the projects, we have limited it to 3 Contractors so as not to waste the resources of the Contractors and increase cost of tendering. There is little or no concern of the Contractors withdrawing during the ECI or tender process due to the specific requirement to get senior management (in some cases the CEO himself) to attend the ECI meetings and tender interviews. With such high level relationships being exchanged, there is little concern.

Generally there are two schools of thoughts on how the ECI process can be carried out. One is to have a longer tendering period and have the tendering Contractors work with the Consultants, getting their queries answered during the tender period. This would translate that the tendering period would extend from 1 month to 2 to 3 months. The second one would be the use a long pre-tender period, say a month, to get all the queries answered by Consultants to the Contractors and have a shorter tender period with little or no tender queries after the tender

By Seah Hsiu Min EugeneSingapore Institute of Surveyors & Valuers

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THE POWER OF EARLY CONTRACTOR INVOVEMENT (Cont’d)opening. The latter is mostly used and is preferred by us as it gives more surety on the tender requirements, addressing outstanding issues holistically but yet keep the special ace-cards by individual Contractors specific to that contractor only. Lets discuss more in the next paragraph.

With the overall administrative management by us, the Consultants are expected to present the design intent to the Contractor and the management of the ECI process is usually by the Quantity Surveyor that is Langdon & Seah. Heads of discussion would include but not limited to:

Architect Design Overview M&E Design OverviewC&S Design Overview ESD Design Overview Safety Overview (for projects going for Design For Safety)Etc

Timelines for the ECI/ AIP Process

The overall timeline, as a guide, can be as follows :

Day 1- Briefing to Contractors and Collection of the ECI/ AIP documentDay 12- Queries from Contractors to ConsultantsDay 17- Replies from Consultants to ContractorsDay 29- Submission of ECI/ AIP documents. Day 31- Presentation of ECI/ AIP from Contractor to Consultants.TENDER PreparationDay 45- Call tenderDay 75- Tender return and commencement of evaluationDay 120 - Tender Award

During the 31st day, the Contractor is expected to present his proposed solutions in a 1 hour presentation. A typical format is as follows :

a) Contractors’ organisational chart and project team proposed for the project. The project team has to be present at the presentation

b) Preliminary program showing main

1.2.3.4.5.

6.

•••

heads of works and suggestions how to shorten this program

c) Construction implementation proposal, including any special construction methodology such as semi or full top down construction.

d) Quality proposal on how to maintain quality of the works.

e) Hazard Identification and Risk Assessment (HIRA) and how the risk can be addressed with the HIRA Checklist (HIRAC).

f) Innovation, Constructability and Buildability

g) Sustainability proposal

h) EHS best practices

i) Value Management Proposals

As mentioned, these points are non-exhaustive and should be adjusted to cater for different projects. It is also essential that enough information is given to the Contractors to understand the requirements, including drawings, schematics, parameters and assumptions, BIM model (if any) , etc to assist in this fast pace period. Tender deposits can be paid prior to the collection of the ECI/ AIP document.

In some projects, even the meeting notes, plans and discussions with the authorities such as the Land Transport Authority (LTA) is included, especially for projects involving the Mass Rapid Transit (MRT) reserve lines. The more information is provided, the clearer the Contractor is, the more he will contribute constructive in the ECI process as well as a keener construction cost that has lower risk buffers by the Contractor.

So, what is the procedure for public project? Because of the PQ process that is an open process, the subsequent short listing to the primary 5 Contractors should suffice to the Government’s procurement procedures. The ECI procedure can be deemed as a lengthened PQ procedure on the 5 shortlisted Contractors with the tender period and submission as a final submission with little or no queries coming in. Although there have been discussions with certain Government departments

and the Building & Construction Authority of Singapore, some of our projects are in its infancy stages on the use of ECI/ AIP in public projects.

Conclusion

The objective of the ECI/ AIP process is to integrated current and existing process to allow early involvement with the contractors for the following reasons:

Shorter tender periodSeeking their views on construction methodologySeeking their views on buildability and constructabilitySeeking their views on time lines Seeking their views on VM/ VE, embellishments to design To get to know the contractor and his team betterPromote Partnering concepts but in a tendering environment

The experience by our office on ECI and AIP has been a good one with 100% success on all of our projects. Of course, the Developer and the entire Consultant team has to have the same like-minded thinking and cooperation coupled with the right group of Contractors who have the same thesis in understanding of the ECI. The success in these projects are because of everyone in the team.

It is very apparent that Contractors who use BIM ( and the related suite of software) and other simulation tools, coupled with their in-house speciality on design management (for construction, sustainability etc), have benefited greatly in the ECI/ AIP process. In some projects, Contractors have shown that the construction time can be reduced considerably by changing minor designs but have greater impact on construction sequencing. This will increase productivity on site and yet stay construction cost, saying that market conditions are stable.

••

••

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Recent Cost Trend in Hong KongHong Kong is still suffering from the problem of lack of construction labour. According to statistics from Census & Statistics Department, 65.5% of workers employed by construction industry as at Dec 2012 are 40 years old or above . The Secretary for Labour and Welfare told reporters last year that “the construction industry is facing the perplexing issues of “3D” — difficulties, dirty and danger — in recruiting young staff”. He opined that the issues of “difficulty and dirty” can still be easily resolved by strengthening the industry’s training qualities and enhancing the industry’s professional images through the image-building process”.

For quantity surveyors, there is a similar problem of shortage. HKIS President Sr Stephen Lai told reporters that a 30 percent vacancy in the middle-rank level of qualified surveyors is recorded in the construction sector . The shortage problem may become even worse due to competition of other economies. There is an increasing number of casino and hotel projects in Macau and Singapore is investing SDG$20 billion on railway projects and compete fiercely for construction professionals stationed in Hong Kong .

On the other side, the total gross value of construction works that the main contractors performed in Hong Kong in 2002 increased 24.2% in nominal terms over a year .

Actually the infrastructure expenditure in Hong Kong had been steady from 1993 to 2008 (between HK$20-30 Billions) but it started to increase tremendously since 2009. In 2013, the infrastructure expenditure is HK$76 billions . For housing, the Long Term Housing Strategy Steering Committee just suggested the government to set a new target of 470,000 units to be built in next 10 years, i.e. 47,000 units annually . This almost doubled the annual supply of housing units from 2006-2013. With the continuous increase in demand of both infrastructure and residential works, the demand for construction workers and professionals would continue to be strong and the construction cost in Hong Kong is expected to rise sharply.

In order to attract university graduates to join the industry, the Construction Industry Council organized job expo and 6-months training scheme to recruit and train graduates without any construction work experience. A news report showed that a graduate who worked for IT changed to work in construction as he expects his salary can reach HK$30,000 per month .

A recent employment survey shows that increase in salary of quantity surveyors fresh graduates in 2002 was 9.4% and was highest among all fresh graduates . Increase in QS’s salary may attract more new blood to join the profession.

Table: Average Gross Income of 2012 Full-time Graduates in Professional Services

A solution to the shortage of construction labour problem is to allow import of construction workers. A legislator Abraham Razack, who represents real estate and construction, said the shortage was delaying progress on infrastructure projects and increasing building costs. He viewed that the government should take a courageous political step and import foreign labour. Another legislator James Tien Pei-chun said the supply of skilled construction workers was 15 per cent short of the demand, representing a lack of 8,000 to 9,000 workers. He questioned that the government has pledged to meet the housing target and this target cannot be met if we do not have sufficient workers.

However, chairman of the Construction Industry Employees General Union opposes the proposal. He said the city had about 110,000 skilled workers and 170,000 unskilled workers at present - and the shortage was only in skilled workers.

By Sr Joseph Chong, Council Member, QS Division

Hong Kong Institute of Surveyors (HKIS)

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Recent Cost Trend in Hong Kong (Cont’d)According to L&S QUARTERLY CONSTRUCTION COST REVIEW FOURTH QUARTER 2012, the building cost per m2 in Hong Kong is highest among all Asian major cities. Developers should focus and work hard to control construction cost as it becomes a more and more important element of the development costs. Import of construction labour would be an issue to be considered if the shortage of labour problem affects the economic growth of Hong Kong.

ReferencesLangdon and Seah (2013) QUARTERLY CONSTRUCTION COST REVIEW Hong Kong First Quarter 2013 (URL: http://hk.langdonseah.com/costdata/cost_data_1Q2013.pdf)Chan, O. (2012) Meeting challenges of HK’s construction industry, China Daily, 14 Dec 2012 (URL: http://www.chinadaily.com.cn/hkedition/2012-12/14/content_16016231.htm) Chan, O. (2012) Meeting challenges of HK’s construction industry, China Daily, 14 Dec 2012 (URL: http://www.chinadaily.com.cn/hkedition/2012-12/14/content_16016231.htm)Chan, O. (2012) Meeting challenges of HK’s construction industry, China Daily, 14 Dec 2012 (URL: http://www.chinadaily.com.cn/hkedition/2012-12/14/content_16016231.htm)News.gov.hk (2013) Construction output up 24.2%, March 12, 2013 (URL: http://www.news.gov.hk/en/categories/finance/html/2013/03/20130312_163035.shtml Wong, H.M.A. (2013) Infrastructures and Long Term Housing Supply in HKIS Annual Conference 2013 ProceedingsNews.gov.hk (2013) 10-year housing goals proposed(URL: http://www.news.gov.hk/en/categories/infrastructure/html/2013/09/20130903_134041.shtml)Apply Daily (2013) 加人工有保證 理大生棄IT轉行扎鐵 操fit準備入行 盼數年內月薪破三萬

http://hk.apple.nextmedia.com/news/art/20130414/18227572 HKU (2013) Full employment for HKU graduates reflects positive outlook 29 Apr 2013http://www.hku.hk/press/news_detail_9629.htmlHKU (2013) Full employment for HKU graduates reflects positive outlook 29 Apr 2013http://www.hku.hk/press/news_detail_9629.htmlBut, J. and Siu P. (2013) Business and labour groups disagree over importing construction workers, SCMP Friday, 01 February, 2013, 4:09amhttp://www.scmp.com/news/hong-kong/article/1140620/business-and-labour-groups-disagree-over-importing-construction But, J. and Siu P. (2013) Business and labour groups disagree over importing construction workers, SCMP Friday, 01 February, 2013, 4:09amhttp://www.scmp.com/news/hong-kong/article/1140620/business-and-labour-groups-disagree-over-importing-construction

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5.

6.7.8.9.10.11.12.13.14.15.

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Short case study on Hospital Kuala Lumpur Specialist Complex & Ambulatory Care Centre (HKL SCACC)(The first IBS70 government hospital project)

Keywords about IBSStandardization / PenyeragamanComponent SizeIndustry Standard (Specification)Component CodeModularBasic ModuleModular Coordination / Dimension CoordinationBasic UnitMalaysian Standard MS 1064Off -Site AssemblyPrefabricationPrecastIBS ScoringOn-Site InstallationDelivery & HoistingSpecialized WorkersHigher Cost

1. IBS Construction Technology In Action

The Implementation Of IBS System For Government Projects came about from the Treasury Letter of Memorandum dated 31 Oktober 2008 which requires the adaptation of Open Tendering System through Modular Coordination MS 1064 (Modular Kordinasi MS 1064).

The letter requires 70% IBS components in government projects and the Prime Minister’s Department shall act as the implementation and monitoring unit with monitoring assistance from National IBS Secretariat (Sekretariat IBS Kebangsaan). And the Construction Industry Development Board’s (CIDB) IBS Centre (Pusat IBS CIDB) will be the reference and information centre for the smooth implementation of IBS in Malaysia.

•••••••••••••••••

Reported by Sr Shazali Sulaiman,

Sr Yeap Soon Kiat(Appearing from left to right)

Royal Institution Of Surveyors Malaysia, Quantity Surveying Division’s Junior Organization

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��

Short case study on Hospital Kuala Lumpur (Cont’d)Site Location

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IBS Component (Structural & Architectural) in use comprises of the following:Precast Hollow Core SlabPrefab Steel RoofPrecast WallPrecast BeamsPrecast Cornice & MouldingPrecast StaircaseAluminium System FormworkPrecision BlockworkOne-way Spanning Hollow Core Slab

Precast Hollow Core Slab

The precast hollow core slab (one way direction type) allows for speed of progress of work, where in average it can achieve 1 floor per month for structure framing.

Speed Of Progress Of WorkThe below graphic shows the progress of precast hollow core slab for east wing & centre lobby.

1.2.3.4.5.6.7.8.9.

Short case study on Hospital Kuala Lumpur (Cont’d)

Page 13: of the Pacific Association of Quantity Surveyors (PAQS) · The Pacific Association of Quantity Surveyors (PAQS) is an international association of national organizations representing

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The below graphic shows the progress of precast hollow core slab for west wing & carpark.

Short case study on Hospital Kuala Lumpur (Cont’d)

Page 14: of the Pacific Association of Quantity Surveyors (PAQS) · The Pacific Association of Quantity Surveyors (PAQS) is an international association of national organizations representing

��

2. Summing Up The IBS Score IBS Score Percentage Distribution comprises of the following categories which makes up 100% (maximum IBS Score for a building is 100%):

Structural system, (which contributes most wet trade i.e. 75% labour content) = max 50%Wall system, which is widely available components in the market = max 30%Others Simplified Saving Construction Solution (using standard components MS1064; repetition; 3D components; etc ) = max 20%

Scoring For Structural SystemThe calculation of structural point system is as follow and points awarded are based structural system used:

Allocation based on % floor area that utilises the structural system.Sub-structure works (elements) are not taken into account in the calculation e.g. piling, ground beam, ground slab, underground car park etc).The construction area includes car porch but excluding driveway, apron and landscaped areas.For structural system using load bearing wall, whether precast or in-situ the factor can be determined from the table by treating the wall as wide column.The factor for tunnel formwork system is 0.6.This is for structural without floor.

IBS Factor For Structural Systems

1.2.3.

1.2.

3.4.

5.6.

Short case study on Hospital Kuala Lumpur (Cont’d)

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Scoring For Wall SystemThe calculation of wall point system is as follow and points awarded are based wall system used:

Points are awarded based wall system usedAllocation based on % length of the wall system usedExternal basement wall for earth retaining purposes and toilet cubicle partition walls are excluded from the calculationFor cavity wall, consider the two separate skins as a wallParapet and corridor must be counted in the calculation

IBS Factor For Wall Systems

Other Simplifying FeaturesUse of standardised components; MS1064 (Beams, columns, walls, slab, windows, door)Use of prefab components; toilets, staircase etcRepeating features – grids, floor ht, etc Vertical repetitions, horizontal repetitionLabour saving techniques, spray plaster

IBS Factor For Other Simplified Construction Solutions

1.2.3.

4.5.

1.2.3.4.

Short case study on Hospital Kuala Lumpur (Cont’d)

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Short case study on Hospital Kuala Lumpur (Cont’d)

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3. IBS In Construction Procurement & Costing

In order to derive at a reasonably accurate IBS project budget normally requires 2 Steps as follows:

The 1st step In Estimating IBS Construction Cost involves upfront construction planning and IBS components detailing and specifications.After the 1st step has been identified only can the QS proceed to estimate the cost based on either the below approaches.

In general there are 3 approaches that can be adopted by QS for establishing the IBS project cost and they are namely as follows:

Elemental MeasurementDetail MeasurementProduction Cost Estimation

4. IBS In Contract Management Considerations

Construction ConsiderationsThe following are some of the construction methods & cost consideration when planning to embark on an IBS project:

Heavy lifting crainage (180 ton per lift @ RM60K/Month) / tower crainMore full time crainage (50 ton, 65 ton & 180 ton) Different lifting contraptionWalky-talkySub-contractingLimited IBS system / brandsLack of connection / integration of IBS componentsRequired a lot of floor to floor & services by services planning & coordinationAllow for starter bars or connectorsCost ConsiderationsSavings on formworkSavings on timber scaffoldingSavings on construction periodLower labor contentLess wastageHigher cost of IBSHigh initial / setup cost of IBSLess competitive tender priceNeed high tech contractors / sub-contractors

Alteration / Renovation Consideration

Despite of its advantages above, IBS system lacks in the following when compared against conventional systems:Difficult to accommodate, needs to be pre-planned upfrontAny alterations or renovations will requires hacking of concrete membersStructural elements cannot be hacked

1.2.3.

1.2.3.4.5.6.7.8.9.10.11.12.13.14.15.16.17.18.19.

1.2.3.

Short case study on Hospital Kuala Lumpur (Cont’d)

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Why Philippines is now opting for “Green” BuildingsIn the 2011 Climate Change Vulnerability Index (CCVI) by British firm risk analysis Maplecroft, Philippines was cited as one of the six fastest growing cities in the world that is at “extreme risk” to the impact of climate change. The disasters brought about by typhoons along with news of calamities elsewhere have heightened local awareness on climate change and is pushing local construction professional to participate.

The bright projection of the economic performance of the Philippines is complemented by the country’s efforts to introduce green or sustainable means of development. With the rising initiative to introduce environmentally-sensitive methods and technologies in construction, local stakeholders are now aware of the countless benefits which will result, not only in addressing the problems of climate change, but also in reducing construction and long-term property management costs.

In the quest to introduce improved systems of development, locally-available and ecologically-sustainable building materials to support effective construction designs have been re-discovered. The degree of energy efficiency and the ability to recycle other resources have increasingly become incentives to developers, as property management costs are significantly reduced.

The serious move to encourage sustainable development designs and buildings prompted the creation of a local ratings system called the Building Ecologically Responsive Design Excellence (BERDE) – the local counterpart of the US Green Building Council’s Leadership in Energy and Environmental Design (LEED) design standards, in promoting green architecture and design.

The success of this new type of development will certainly encourage more developers, with the help of local governments, to build better cities and communities. As the country is poised to become one of the more important players in the global economy, what is clear, for now, is that the success factors in maintaining the country’s competitive advantage are being enhanced by concerted efforts towards sustainable development. More multinational corporations that want to set up local headquarters in the Philippines look for eco-friendly skyscrapers. There is a mounting demand from the international business community, especially foreign investors, on local locators to offer more green buildings. An increasing number of Filipino building owners are retrofitting and upgrading existing buildings to improve energy efficiency and environmental performance.

The Philippine Green Building Council (PHILGBC) was incorporated on March 22, 2007 as a national non-stock, non-profit organization that promotes the sharing of knowledge on green building practices to the industry to ensure a sustainable environment. It was

organized to serve as a single voice in the promotion of holistic and market-based green building practices, to facilitate the sharing of green building information and practices in the building industry, and to serve as a non-partisan venue for the development of a green building rating system.

BERDE is a green building rating system developed by the Philippine Green Building Council (PHILGBC), and is used to measure, verify, and monitor the environmental performance of buildings that exceeds existing mandatory regulations and standards. It is consensus-driven, and achieved through a multi-stakeholder consultation and collaboration process.

LEED Certified Projects in the Philippines include Asian Development Bank, Nuvali One Evotech, Texas Instruments Baguio and Pampanga, Sunlife, Mind Museum, Shell Shared Services Office, Manila Water, NET Lima and Zuellig. There are 58 projects that are awaiting LEED certification in the Philippines.

By Jose Fernando Magsi Communication Committee,

Haira Alilio Centralized Membership Committee ,Philippine Institute of Certified Quantity Surveyors (PICQS)

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Why Philippines is now opting for “Green” Buildings (Cont’d)The Role of the Quantity Surveyor in Sustainability

Quantity Surveyors in the Philippines have now incorporated aspect of sustainable construction in their services, and is fast becoming a key feature in construction projects. With focus of energy reduction and cost of occupation, whole-life cost studies and assessments on long term impact are now part of investment decisions along with examining options using payback and rates-of-return on capital. Is Going GREEN Costly

According to the study conducted by Langdon and Seah Philippines International (LSPI), using LEED Certification Rating, the % on construction cost would be 6%-9% if its Platinum Rating and 3% - 5% if its GOLD rating. These figures are based on a project above $100M with base design not having any Green Building technologies and basic elements only meeting code requirements.

LSPI offices see a decline in the extra over cost for GBTs as basic designs incorporate these GBs as an integral part of the building design (under total building performance). The cost of going green is insignificant as compared to the value of the building. 2% of the increase in construction cost translate to a small % of total development cost and this is nothing compared to the value and future proofing of asset.

Green buildings earn almost 8 percent more in terms of rent than a regular building and surprisingly, for sales purposes, they can go as high as 16 more than conventional buildings. So whatever small investment you give is offset by the additional income

COST of NOT Going GREEN

There are social pressures due to increasing public awareness of going “Green”. In addition, retention and productivity of employees is of increasing importance. A study conducted by CBRE US found out that in green buildings, there is an average of almost three days less absences per employee, so that is a big factor when employers consider the output of the workforce, they know that a green building is a better place for work and it is generally healthier so the productivity is there. The anticipated carbon tax being imposed on energy consumption (as in other developed countries) is also a threat to not going green.

References:http://earthsky.org/earth/top-10-countires-most-at-risk-from-climate-changehttp://www.honestbuildings.com/projects/43673/leed-certified-gold-texas-instruments-philippines-clarkhttp://ph.news.yahoo.com/green-buildings-philippines-122634159.htmlhttp://berdeonline.org/index.php/rating-schemes/project-registryhttp://www.gbig.org/activities/leed-10133321Mary Joyce Areola’s RICS Presentation in LSPI in Manila, Philippineshttp://www.philstar.com/real-estate/649658/one-evotech-nuvali-gets-leed-silver-certificationhttp://business.inquirer.net/6368/sustainable-development-seen-by-going-green

1.2.3.4.5.6.7.8.

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‘Latest Project Development and Construction Cost Trend’ in Brunei Brunei Darussalam is located in the Island of Borneo in South East Asia neighbouring to East Malaysia and Indonesia. Brunei is a small country with an area of 5,271 square kilometers where 75% is still covered with tropical rainforest. Our current population is approximately 400,000 people. Brunei Darussalam is well known as “A Kingdom of Unexpected Treasure” since 2010.

Below here are some of the latest project development in Brunei together with its construction information. The first is the Block B26 Knowledge Hub, Anggerek Desa Technology Park. This project costs approximately US$4 Million procured using Design and Build method. The construction period of the project is 15 months. The Hub consist of some green features such as Low-E glazing, automated lighting using motion sensors, environmental friendly air-conditioning system, energy saving elevators, water saving sanitary fittings and solar power panels.

Follow by the next is the Lugu National Housing Project which is procured using traditional method. This project is expected to be completed 4 months in advance instead of the 36 months allocated. The construction cost for this project is approximately US$55 Million providing 520 units of houses under the national housing scheme. One of the main reasons this was achievable is due to the good relationship between project parties. This project is also expected to be completed within the budget allocated.

Another example is the Upgrading of Kampong Ayer Apprentice Project located at the heart of Bandar Seri Begawan. The objective of this project is to renovate and replace some of the water village houses. A traditional with selective tendering procurement was used for this project which costs around US$25 Million. The duration of the project is 7 months and was completed in July 2012. Some features of this project is the use of dry wall fibre cement stud wall, integrated aluminium roofing, pre-cast structures, spun pile concrete and etc. Most of these features promote fast track construction to overcome its windy and wet conditions.

From the above few projects, Brunei Darussalam mainly uses the traditional procurement method. Some of the projects were still awarded to the lowest tenderers which may not achieve the goals or objectives that were intended in terms of cost, time and quality. This may lead to cost and time overrun, bad relationship between parties, encouragement of the blaming culture, poor workmanship, low quality materials and etc. The question is whether it is the consultants’ failure in advising the client or is it due to the stubbornness of clients? These effects can be minimize by ensuring contractor’s capabilities, whole life costing data and sharing experiences of bad projects with identical specifications. Currently, Brunei Darussalam is moving away from the practice of selecting the lowest bidder.

The other practice often seen in Brunei Darussalam is cost reduction exercise. The cost reduction exercise is often carried out when architects over design exceeding the budget. This exercise often involves substituting to low quality specification thus the original perceived product is no longer achievable. Another common factor leading to cost reduction is derived from the lack of detailed brief from end user or client and the lack of communication between all the stakeholders. This means that the time and effort for estimating the original package might end up being omitted. The cost reduction exercise is not a bad practice; however, it should ideally be carried out during design stage instead of after the tender awarded in order to prevent any potential problems.

The application of modular design and prefabrication works are still limited in Brunei Darussalam. This method has been practiced in the national housing scheme but it is being fabricated on site using formwork moulds casted on site. This has been practiced in one of the housing project to build over 4000 houses in a relatively short period of time. The outcome of this method is that the houses are completed within the time allocation and also some savings to the contract sum.

Even though Brunei Darussalam is still practicing traditional procurement but design and build procurement is getting more and more popular nowadays. The risk in design and build can be minimized by practicing it regularly to optimize its advantage. Using this procurement may lead to changes in design leading to variation works, however these can be minimized by firming the end user’s or client’s design brief and avoid any changes during construction. In terms of assessment of design and build compared to traditional procurement method, it may be difficult for client to select between the bidders, because essentially it’s like comparing apple to orange. The consultants will have an important role of recommending the most suitable option to the client.

As of 13th May 2013, the Brunei Green Building Council (GBC) is formed. The council’s main objectives are to develop more environmental-friendly buildings; promoting sustainability in the built environment as well as an awareness to the general public. A green building rating tool formulated to suit the country is underway.

By Mohammad Eddie Bin Wasli PUJA-Brunei

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Construction Industry, Quantity Surveyors and Software in Sri LankaConstruction industry is unique nature due to the features of output, its size, government as a main client, nature of demand for construction output, nature of construction work, variety of construction technology, and structure of industry (Nazib Faizal, 2013). As a quantity surveyor in this vast, unique and dynamic environment we must use many methods to improve our efficiency and effectiveness. In this 21st century, in the midst of the digital world, software can be an assistance to mitigate and minimize the vast work load that a quantity surveyor has to bear. The quantity surveyor are spending more time on repetitive work than using the quantity surveying practices.

In the Sri Lankan context, to my knowledge and experience in industrial training, there are many software that are been used by quantity surveyors. They can be mainly, Microsoft word, Excel and Autocad. These softwares are used currently to reduce repetitive work and ease the work. There is a lot of time wastage in repetitive work in the preparation of equations and BOQ etc..

There are many areas that can be improved to help quantity surveyor use of software. To my experience, these softwares they are now using are not compatible with each other as well as the users do not have the complete knowledge. For example, Autocad and Excel cannot directly connect with each other which, has reduced the working speed in producing a BOQ. Furthermore there are many way to increase the speed of using Excel as well. One may be using macros, or even a template can be used with all the equations added.

We can also go for new softwares that have the ability to work with all the needs of the quantity surveyor such as drawing and documents. In addition, Software engineering and developing professionals could be used to develop current softwares to quantity surveyors need and expectation. One program that I learn has such potential is Costx software that can deal with the drawings, 3D models, rates and documentation. But such softwares are not popular among current practitioner and they not willing it leave their comfort softwares.

In conclusion, quantity surveyor plays a major role in the construction industry handling the expenditure. Therefore there is major workload on his shoulders. In this digital world, software can used to minimize the work load of the quantity surveyor, and focus more quantity surveying aspects. Therefore we must improve our softwares and skills on them to be more efficient and effective.

ReferencesNazib Faizal (2013). Construction Industry and its characteristics. [online] Retrieved from: http://kumahauing.wordpress.com/2010/11/13/construction-industry-and-its-characteristics/ [Accessed: 26 Oct 2013].

By K.A.R.V.D KahandawaBSc (Hons) Quantity Surveying

University of Moratuwa, Sri Lanka

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TENDER SUBMISSIONSOne of the utmost important documents in construction industry is the tender response which is offered by the contractor. Substantially the time duration that provided to write the tender response may be varied according to the nature of the project, client needs to start the project as soon as possible and etc. Nevertheless the only thing you have to verify as the bidder who has necessitated of succeeding the bid, that you submit your tender before the given dead line. Otherwise you may be deprived of not only that bidding but also your staff’s valuable time, energy and may be motivation even.

I had one such experience in my training period as trainee Quantity Surveyor in the contractor’s tendering department. Phase I of that project was being constructing by the same contractor when there was a call for tendering to Phase II. As the one of the trainee, who had been involving for that Phase I project, I also personally knew that the project is contributed good profit to the contractor and the client also highly satisfied about the speed of construction where the master programme was in step back. By the way contractor had mobilized already in the site and it trimmed the price of preliminary bill significantly, which would be highly advantage to the contractor in the evaluation process. Even the risks which could have to face by the contractor had also highly predictable than other bidders. Whole the management and financial department of the organization were keen on that tender and all had the idea that “we can win this without matter”.

Can you imagine what happened at the end? Yes, by frustrating whole the tender department and giving me the article topic, the tender was rejected without openly because of the late submission. Still it is kept in my heart as a sweet dream which was ended as a nightmare. In the first time of my life, I felt how much value it is having for 15 minutes. As a profit it was millions. In your case it can be billions and even more.

One thing I want to emphasize is, please be careful about your time management as professional Quantity Surveyors in case of these situations. It will diminish the wasting time, money and all other resources as well as acquire more for you and your company. Unlike other resources, time cannot be bought or sold, borrowed or stolen, stocked up or saved, manufactured, reproduced, or modified. All we can do is make use of it in a superior way. Therefore, corroborate about the deadline of the tender submission, if you sense you can’t achieve it better to throw away the tender document without taking single attempt to fill it.

By P.A.C.B. AllisBSc (Hons) Quantity Surveying

University of Moratuwa, Sri Lanka

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Introduction to “Guidance of Practice for Project Management for Construction Projects (First Edition, Shanghai)”In recent years, the scale of construction projects is getting larger, technologies adopted are becoming increasingly complex, more stakeholders are involved in the construction process and the clients’ requirements are getting stricter. Accordingly, the scope of professional project management services provided by project management companies are getting wider, deeper and with more responsibilities. The whole industry believes the construction consultants industry has a long way to go facing current trends and heavy tasks. So, we must try our best to improve every project management team’s professional skills and knowledge. The better project management environment and more good practices in Shanghai have provided foundation for researching and concluding on project management for construction projects and formulating a guidance book for the industry. Hence, being the initiator, organized scholars from universities including Tongji University Complicated Engineering Management Research Institute and experts in the construction consultants industry in China together formulate the Guidance of Practice for Project Management for Construction Projects (referred to as Guidance hereinafter) as an important step to prosper the construction consultants industry.

SCCA always focuses on the dynamic state of international and domestic project management, especially on member’s implementations of project management services and explore platforms in order to provide chances for SCCA members to display and exchange ideas and practical experiences. 2010 November, 1st International Project Management Conference•Shanghai attracted over 400 Chinese and foreign experts, scholars and professionals during the two-day conference, and organized more than 10 thematic reports and panel discussions. 14-15 November, 2013, 2nd International Project Management Conference: current development and future trends in project management - common values and cultural connotation held in Shanghai.

Project management may be defined as “the overall planning, co-ordination and control of a project from inception to completion aimed at meeting a client’s requirements in order to produce a functionally and financially viable project that will be completed safely, on time, within authorized cost and to the required quality standards.“ (Code of Practice for Project Management for Construction and Development - Fourth Edition). Project management services refer to the intelligence services mainly provided by the third party professionals and oriented to the whole society, clients and owners.

Project management runs throughout every construction process, i.e. from the very investment intention and under condition of sustainable development, through initial, planning and designing, pre-construction, construction, completion and handover, post-completion review until facility management. The final purpose is to satisfy the requirements of the client through all-process planning, organizing, coordination and control of a project, so as to build a project which is full-featured, financially profitable, environmentally friendly, and beneficial to the final users and with time advancement. In another word, project management aims to safely complete the project within scheduled time, authorized cost and required quality standards.

Referring to standards of project management in European and American and the practice experience of domestic project management services, the guiding concept of the Guidance is to refine the standardized contents of whole-process project management service provided by consultation companies to the clients/owners, including the framework of what to do, how to do and the result of doing for professional project management services, as well as working contents, scope and extent

By Annabella WuCECA (Shanghai branch)

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Introduction to “Guidance of Practice for Project Management for Construction Projects (First Edition, Shanghai)” - Cont’dof service, and flow of project management service. By referring to the current project management standards worldwide including standards of FIDIC, the Code of Practice for Project Management for Construction and Development (Fourth Edition) from the Chartered Institute of Building (CIOB) and various internal project management service standards from many domestic consultant and project management companies, it has been eventually decided to formulate the Guidance in six stages according to the whole process time sequence of project, i.e. initial stage, planning and designing stage, pre-construction stage, construction stage, completion and handover stage, and post-completion review stage.

In the viewpoints of the consultation companies providing professionalized project management services to the clients/owners, the Guidance tries to generate a guideline for their service, complying with the current laws and regulations of China, and taking the market demands as orientation. It not only takes the regulation between current system and approval procedure into consideration, but also makes allowance for the development of project management service in the future as a whole, and users of the Guidance may include clients/owners who plan to employ project management service and the project management companies assigned by the clients/owners. It may also be used by other participants and relevant parties of construction projects for reference. The preconditions of its specific contents are that the owner has engaged other professional consultant companies according to the current laws and stipulations as well as conventions, such as construction supervision company, tender agency and cost consultants company (QS, cost engineering, cost auditing), etc., and assigns project management service on such basis, the contents of which to be undertaken by the project management service provider under such situation. If the owner does not employ aforesaid professional consultant companies according to the normal ways, the services undertaken by aforesaid companies may be transferred to the project management company. Specific services may be decided by the two parties through negotiation in the normal ways. As the types, location, stages of implementation involved and the clients/owners’ requirements are different, the detailed contents of project management services may vary according to the actual situations.

Therefore, the formulation of the Guidance have referred to the current laws and regulations, adopted general professional terms, which guarantees the normalization and operation ability, and meanwhile forecasts the development trend in the future.

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Latest Project Development and Construction Cost Trend In ChinaA. The Real Estate Market In China

In 2012, the Central Government of Mainland China issued a series of policies on macro-control of the real estate market. However, the growth of GDP of Mainland China was not able to get rid of the dependence on the fixed asset investment. As the important part of the fixed asset investment, the real estate market kept growing in 2012. The total investment in the real estate market was RMB 7180.4 billion, increased by 16.2%. Among them, the investment in housing was RMB 4937.4 billion, increased by 11.4%. The investment in office was RMB 336.7 billion, increased by 31.6%. And the investment in commercial was RMB 931.2 billion , increased by 25.4%.

Fig. 1.1 The house price index has increased consistently from June 2012. (Source: http://www.fangchan.com/)

According to the figure 1.1, we can see that the house price index decreased slowly from Aug. 2011, the beginning of this round macro-control on the real estate market. During the first half year of 2012, the house price index was stable. From Jul. 2012, the house price index began to increase at a relatively high speed and exceeded the beginning point in Oct. 2012, which means the real estate market has recovered and this round macro-control was not successful.

Fig. 1.2 The sales performance of the major developers in China in 2012.

By Gu XiaohuiCECA (Shanghai branch)

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Latest Project Development and Construction Cost Trend In China (Cont’d)

Fig. 1.3 The unit prices of land transaction in some cities in China from 2012.

The data of Fig. 1.2 also proved that the real estate market is still in the boom years. From Fig. 1.3, we can see that compared with the land cost, the proportion of construction cost is very small. As the real estate market is booming and the land cost is very high, clients pay more attention to time rather than cost.

B. The Factors Influencing Construction Cost

Fig. 2.1 The price of concretor in Shanghai (RMB/day) Source: http://203.95.6.186/newver/

Fig. 2.2 The price of steel bar in Shanghai (RMB/t) Source: http://203.95.6.186/newver/

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Latest Project Development and Construction Cost Trend In China (Cont’d)Labor cost: With the labor cost growing higher, the construction cost will increase accordingly. However, this will promote the contractor in improving capacity of management and efficiency.

Material cost: The material cost will keep fluctuating. However, if the CPI, PPI and inflation keep growing, the material cost will increase collectively. The proportion of material cost in construction cost will decrease.

The change of policy: The central government is going to issue value-added tax policy in construction industry. This will influence the construction cost greatly. Contractors should be more professional in construction cost management.

Green building: With the consumers now being more concerned about energy conservation and low-carbon, developers now pay more attention to green building.

New technology: With the application of BIM and cloud computing, all the parties in the construction industry will learn to adapt to these changes. New technology will change the method of how a building will be built up. It will also change our wok manner.

C. Latest Project Development

a. The Shanghai Tower

The building will stand approximately 632 meters high and will have 121 stories. The construction area is 576000 square meters. The tower will take the form of nine cylindrical buildings stacked atop each other, totalling 121 floors, all enclosed by the inner layer of the glass façade. Between that and the outer layer, which twists as it rises, nine indoor zones will provide public space for visitors. Each of these nine areas will have its own atrium, featuring gardens, cafes, restaurants and retail space and providing 360-degree views of the city.

b. Ping’an IFC

Ping’an International Finance Center is a 115-storey supertall skyscraper that is under construction in Shenzhen, Guangdong province, China. The tower was commissioned by Ping An Insurance, and designed by the American architectural firm Kohn Pedersen Fox Associates. It is expected to be completed in 2016, and will at that time be the second-tallest building in the world, as well as the tallest in China, standing a total of 660 m (2,165 ft) high.

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Latest Project Development and Construction Cost Trend In China (Cont’d)c. The China Expo Convention & Exhibition Complex

The China Expo Convention & Exhibition Complex will have 400,000 square meters of indoor space and 100,000 square meters of outdoor areas - double the size of the Shanghai New International Expo Center, currently the city’s largest exhibition facility. The project was started at the end of 2011 and will be completed in 2015. The total investment is CNY 20 billion.

d. Shenzhen International Airport Terminal 3

The 400,000 square metre terminal will be built in three phases, with the final elements completed in 2035. Major facilities in Phase 1 will include the unit terminal with 63 contact gates, the first se of the APM, traffic system, parking place, landscape, and shopping centre. During Phase 2, the first remote passenger concourse will be constructed to add gates and the satellite terminal with rail stations will be operational. Development of the airport’s west side will continue until about 2035 when T3 Shenzhen International Airport will be fully constructed.

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Latest Project Development and Construction Cost Trend In China (Cont’d)e. Shanghai Disneyland

The opening ceremony for the construction of Shanghai Disneyland was held on April 8, 2011. The first period construction of Disney Resort covers 390 hectares, including the core area, 116-hectare Magic Kingdom. The infrastructure and supporting facilities consist of the theme hotel, retail store, restaurant, parking lot, central lake, traffic hub, etc. The estimated total investment of the park is CNY 24.5 billion.

f. Hello Kitty Theme Park in Anji

In 2014, the Hello Kitty Theme Park will be opening in Anji, Zhejiang Province. At a cost of $215 million, the 95,000-square-meter will feature all things all things Hello Kitty. The park will be the third of its kind in the world and the first Hello Kitty theme park outside of Japan. It will cover a total area of 60 hectares, including a theme park, hotel and catering services.

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Stay connected.The YQSG Committee

Web1. www.yqsg.net2. http://paqsyqsg.proboards.com/index.cgi3. http://www.linkedin.com/groups?mostPopular=&gid=26083774. http://www.facebook.com/groups/ypaqs/

Chairman: Joseph Chong (HKIS)[email protected]

Vice-Chairman:Prasath Sanjeewa (IQSSL)[email protected] Soon Kiat (RISM)[email protected] Annabella Wu (CECA)[email protected]

Secretary:Nila Dimaano (Philippines)[email protected]

IT:Prasath Sanjeewa (IQSSL)[email protected] Soon Kiat (RISM)[email protected]

Treasurer:Aaron Phua Tuan Chuan (PUJA-Brunei)[email protected] Sow Fun (PUJA-Brunei)[email protected]

Members:Kenta Fukagawa (BSIJ)[email protected] Eugene Seah (SISV)[email protected] Wong (SISV)[email protected] Sze Boon (SISV)[email protected] Salleh (RISM)[email protected] Sulaiman (ISM)[email protected] Wichramasingae (IQSSL)[email protected]

Members:Max Shea (AIQS)[email protected] Alex Ling Kie Kuck (PUJA-Brunei)[email protected] Wong Chuan Xing (PUJA-Brunei)[email protected] Siti Seri Hj Jamil (PUJA-Brunei)[email protected] Muhammad Fahrurrazi Hj Abdul Hamid (PUJA-Brunei)[email protected] Yeo (AIQS)Quek Li Ting (SISV)Vincent Lau (AIQS)

Australian Institute of Quantity Surveyors (AIQS)

Suite 602, Level 6, 65 York Street, Sydney, NSW 2000 Australia.

Phone: +612 9262 1822Fax: +612 9279 1400Web: www.aiqs.com.auwww.yourunthenumbers.com.au

Australia Brunei

Institution of Surveyors, Engineers and Architects, Brunei (PUJA)

Unit 3, 2nd Floor, Block B9, Simpang 32-66, Kampong Anggerek Desa, Berakas BB3713, Brunei Darussalam

Phone: +673 2384021Fax: +673 2384021Web: www.puja-brunei.com

Email: [email protected] or [email protected]

China

Quantity Surveying Division, The Hong Kong Institute of Surveyors (HKIS)

Hong Kong

Room 1205, 12/F, Wing on Centre111 Connaught Road Central, Sheung Wan,Hong Kong.

Phone : (852) 2526 3679 Fax : (852) 2868 4612Email: [email protected]

China Engineering Cost Association (CECA)

No.9 SanLiHe Road, Ministry of Construction, Beijing, P.R China

Phone: +86 10 5781 1486 Fax: +86 10 5781 1485Web: www.ceca.org.cn

Canada

Canadian Institute of Quantity Surveyors (CIQS)

90 Nolan Court, Unit 19, Markham, Ontario, L3R 4L9 Canada

Phone: +905 477 0008Fax: +905 477 6774Web: www.ciqs.org Email: [email protected]

FIJI

Fiji Institute of Quantity Surveyors (FIQS)

PO Box 286, Suva, Fiji

Phone: 67 9 300 455Fax: 67 9 300 375Email: [email protected]

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Stay connected.

If you are a practising Quantity Surveyor below age 40 with an interest in publishing articles in YQSG Newsletters, you can send your articles to Prasath ([email protected]).

New Zealand

New Zealand Institute of Quantity Surveyors (NZIQS)

Level 8 276 Lambton Quay Wellington 6011 New Zealand

Phone: (64) (0)4 473 5521 Email: [email protected]

Phillipines

Philippine Institute of Certified Quantity Surveyors (PICQS)

Unit 4H Tower 5 Avida, Sucat Towers,Dr. A. Santos Avenue, Sucat, Paranaque, Philippines

Phone: 0063 9189092612 0063 917 8111068Web: www.picqs.orgEmail: [email protected] or [email protected]

Singapore

Singapore Institute of Surveyors and Valuers (SISV)

110 Middle Road #09-00 Chiat Hong Building Singapore 188968

Phone: (65) 62223030 Fax: (65)62252453 Email: [email protected]

Institute of Quantity Surveyors Sri Lanka (IQSSL)

The Professional Centre, No. 275/75, 2nd Floor, Prof. Stanley Wijesundra Mawatha, off Bauddhaloka Mawatha, Colombo 07

Phone: 0094 11 2595970 Fax: 0094 11 2595570 Email: [email protected]

Sri Lanka

Malaysia

Royal Institution of Surveyors Malaysia (RISM)

3rd Floor, Bangunan Juruukur, 64-66 Jalan 52/4, 46200 Petaling Jaya, Selangor, MALAYSIA.

Phone: 603 7955 1773, or 603 7956 9728 Fax: 603 7955 0253Web: www.rism.org.my Email: [email protected]

Japan

Building Surveyor’s Institute of Japan (BSIJ)

105-0014 3-16-12 Shiba, Minato-ku, Tokyo Mita 3F Sunrise Building

Phone: (03) 3453 - 9591 Fax: (03) 3453 9597 Web: www.bsij.or.jp Email: [email protected]

South Africa

Association of South African Quantity Surveyors (ASAQS)

Suite G6, Building 27, Thornhill Office Park, Bekker Road, Midrand, 1686, South Africa

Phone: +27 11 315 4140Fax: +27 11 315 3785Web: www.asaqs.co.zaEmail: [email protected]