Regional News for. for September China Development. Chartered Institution of CIVIL ENGINEERING SURVEYORS Hong Kong Region.

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1 Regional News for for September 2011 Mr. Andrew Keung Hon Editor China Development Andrew Keung ICES has come a long way and gained the Charter status. Its membership climbs a few steps up with the support from Middle East and to some extent from Hong Kong. However, to sustain growth, ICES has to look into other prospects such as East Europe and Asia. Hong Kong has a close tie with China and it is only natural the Hong Kong Committee to recommend ICES to explore opportunities in China. In the past decade, China has opened its door and connected to the world economy. She has maintained a strong growth and elevated its global position in the business world. With its vast population and six millions graduates coming out from universities every year, it is a big market ICES cannot ignore however difficult it may be. The China government has been encouraging all its State Owned Enterprises (SOE) to go out and see the real world. Within the China government structure, these SOE in construction industry are being looked after by China International Contractors Association (CHINCA), a semi-government organization under the Ministry of Commerce. There is a strong desire for these enterprises to bridge their knowledge with the western world, Eric Lo and Andrew Keung, past chairs of grasped this opportunity and approached CHINCA during their chairmanship and finally managed to sign a Memorandum of Understanding with CHINCA in 2005 for close cooperation in training and membership recruitment. Since the signing of the MOU, two training seminars on International Project Management and Project Procurement had been successfully organized for the senior members of these SOEs. ICES had built up stronger ties with some of these companies (e.g. China Harbour & China Overseas). The has approached CHINCA again and agreed to organize another training session in September 2011 and at the same time; we introduced BKSurco to CHINCA as our training agent. A great applause must be given to the lead speaker John Battersby for his hard works in the preparation of the training course and other facilitators including Honby Chan (HK Chair); Andrew Keung (Past Chair and current CoM council member); Miranda Lui (Vice Chair); Steven Yip (ICES HK Hon Legal Advisor); LC Yu of China Harbour and Jacob Lam of NQS. It is encouraging to note that some delegates have shown their keen interests in the ICES qualification and submitted the ICES membership applications to us soon after the Workshop. 1

2 Dispute Resolution in Construction Project Alex Tang 5 Sep 2011: A Commercial Management seminar Dispute Resolution for Construction Projects by the. 75 ICES members and guests attended the seminar. During the seminar, Alfred Wu introduced the different types of alternative dispute resolution (ADR) which are common in Hong Kong. The benefit of ADR and the demerits of litigation were discussed. Furthermore, Alfred introduced the history of mediation in HK since the 80 s. Current developments, features and process of mediation were also discussed. Finally, Alfred gave us a brief but comprehensive introduction for the New Arbitration Ordinance Cap 609 which came into force on 1 June 2011, e.g. removal of the split regime for arbitration and adoption of the UNCITRAL Model Law with its 2006 amendments for all arbitrations. Alfred Wu, Solicitor of Sidley Austin, delivered a talk about dispute resolution and recent arbitration practice. This is a joint function with the Hong Kong Polytechnic University. CPD Convenor Cordia Yu (right) presents a souvenir to Alfred. 2

3 BIG BIM and how the Spatial Data Infrastructure supports it Ray YY Ng 16 Sep 2011: A technical seminar organized by the IT Division, Associate Members Committee of HKIE and ICES () on BIG BIM (Building Information Model) was held on 16 Sep The Speaker Mr. Jimmy Lau, Solution Manager with Bentley System Hong Kong Limited, introduced BIG BIM Building Information Modeling further moving beyond design and build, creating a single integrated data model that can be used for any project and worked through four interlinked stages. BIG BIM will challenge the established procurement norm, pushing the industry to deliver at less cost, with less risk, less carbon and less time. 85 participants attended the seminar. The Big BIM stand was made up of 3D data collection. Perhaps we should think of BIM in two ways, BIG BIM and Little BIM. Little BIM is what many refer to in the industry today as BIM, this addresses the discipline specific Building Information Modeling as preferred by designer, but this does not address the bigger picture. It is also well documented that integration and interoperability are real issues with Little BIM It is important to keep in mind that the future is not so much about exchanging files; it is about using the Web to publish, discover, and access information. The Web companies we have come to rely on provide information services, not data files. That is what the service-oriented BIM vision is about. The seminar was well received by the participants with a brief review on the use of BIG BIM in planning a construction project. 3

4 The speaker and representatives from the supporting organisations A full house of participants listening to our speaker, Mr. Jimmy Lau CHINCA Training First CPD in Beijing Miranda Lui 5 8 Sep 2011: The four day training involved workshop type instead of classroom lecture. The focus was on the management and administration of claims and variations on international civil engineering contracts using FIDIC conditions. All training briefings, presentations and lectures were in English. There were some 60 delegates and the practical exercises were carried out in groups of 5 to 6 to reflect a project team approach to contract administration. Each group has to prepare the draft letters to the Engineer and present their argument in front of the class for open discussion with John provided a model answer to each of the exercises after the discussion. On the last day of the training sessions, Michael Grose and Ben Cowling from Clyde & Co, Dubai shared their experiences on the Middle East construction market and the opportunities for Chinese contractors. 4

5 John Battersby briefed the workshop facilitators on the first day of the Workshop John delivered his lecture and discussed various the important principles relating to completion and entitlement to extensions of time and payment for variations and prolongation and disruption using FIDIC conditions of contract 5

6 The practical exercises were carried out in groups of 5 to 6 to reflect a project team approach to contract administration Practical exercises were carried out in groups with John and other senior ICES members facilitating the discussion 6

7 A group photograph with all the delegates and CHINCA officials. John Battersby together with senior ICES members including Andrew Keung (HK Past Chairman); Honby Chan (HK Chairman); Miranda Lui (Vice Chair); Steven Yip (ICES HK Hon Legal Advisor) and LC Yu and Mr. Jacob Lam are in the front row. Vice Chair Miranda Lui also introduced BK SURCO (ICES training partner) as well as ICES training programme to the delegates Tianjin University Visit Miranda Lui 9 Sep 2011: After four days training in Beijing we then went on another rush journey to Tianjin, another direct administered city of the China Central Government. Honby Chan, Cordia Yu and myself from the and John Battersby from BK SURCO visited the College of Management and Economics of the University. We discussed with Dean Professor Zhanwen Niu and Associate Professor Wenxue Lu about BK SURCO training modules where the University s own training modules were also compared. We also suggested that collaboration on courses, tutors and role of each party could be further explored. We look forward to signing a collaboration agreement during our CEO Bill Pryke in ICES Headquarter to visit Tianjin in coming October. 7

8 Picture taken in front of the College of Management of Tianjin University Contract Surgery Construction Risk Management Denny Mak 27 Sep 2011: A training presentation on Contracts Surgery on Construction Risk Management was conducted by Mr. John Battersby, Director of BK SURCO in Room 202, Duke of Windsor Social Service Building, Wan Chai. This was the second talk on Contract Surgery held this year by Mr. Battersby. John introduced construction risks, its identification and management, the allocation of risk in contracts and the management of risks in respect of tendering and time overrun. John gave examples of risks and elaborated on the effects. The consequences of risks events might be significant to the overall completion and closure of a project. However, some measures could be taken to reduce those risks. Contractors might minimise risks by building in contingencies in their working programme. He demonstrated the use of programmes to illustrate how to prevent a project being overrun with suitable measures in association with sub-contractors. Commercial and contracts managers could also play an important role in risk minimisation by implementing effective contract administration. This includes close monitoring of procedural documents, reporting and prior measures to agree payments in acceleration measures to recover any delay. Proactive contract and sub-contract management is a very useful tool to avoid risk. In conclusion poor programming and poor contract administration are probably the most significant risks in construction. Risk can also be reduced significantly by contracts specifying the quality and requirements of the project management team. 8

9 We must express our deep appreciation to John s efforts in delivering more and more talks over the years. In October he will again speak to us about variations in a Saturday morning seminar. We look forward to attending this talk. From Left: Honby Chan (Chairman HK Region, Cordia Yu (CPD Convenor), John Battersby (Speaker, Director of BK SURCO) John delivered his second Contract Surgery. The topic is about Risk Management 9

10 Q & A time: members are satisfied with John s further clarification Honby represents the HK Region to present a souvenir to John Council of Management Nomination Eric Tse Nomination for members to serve on the Council of Management was closed. This year there are seven vacancies and 8 valid nominations forms including our past chairman, Mr Andrew Keung and vice chair Ms Miranda Lui were received by the closing date. Please therefore watch out for the polling paper. As you all know, both of them have contributed a lot to the development of ICES in Hong Kong, Macau and Mainland China. The Hong Kong Committee fully supports and endorses their nominations. We also call upon your keen support on the Poll Day. 10

11 Coming Events 8 Oct 2011: Technical Visit to Ocean Park: Thrill Mountain and Polar Adventure, details to be confirmed. 22 October 2011: Contracts Surgery on Valuation of Variations under the Hong Kong Government General Conditions of Contract conducted by John Battersby at Room 103, Duke of Windsor Social Service Building, Wan Chai 22 Oct 2011: Our CEO Mr. Bill Pryke will visit Hong Kong and introduce ICES coming development, details to be confirmed. 11