CONTENTS

1 1 CONTENTS2 Message from the Director3 Message from the Assistant Director ( quantity Surveying)4 The Organisation of the quantity Surveying Branch7 The Services and Activities undertaken by the Branch8 Project Cost Estimate10 Procurement and Tendering14 Preparation of Bills of Quantities17 Development in the Measurement of Building Services Installations19 Post Contract Administration and Final Accounts22 Term Contracts24 The Operation of Maintenance Term Contracts26 General Conditions of Contract31 Consultancy Management34 Subvented Projects37 The School Improvement Programme39 Dispute Resolution Advisors System42 Technical Audits44 Advisory Services47 Computerization and Information Management51 Training and Commitment to Continuous Improvement53 Special Articles54 Overview of ArchSD Tender Price Index and Contract Value (1986 to 2005)

2 56 Life Cycle Costing From Theory to Practice60 The Development of Construction Mediation in Hong Kong64 Legal aspects of QS69 The High Street ProjectThe Review and Outlook of the quantity Surveying Branch and the quantity Surveying Profession2 Message from the DirectorYue Chi-hangDirector ofArchitectural ServicesI am delighted to see that the Architectural ServicesDepartment has become a prominent worksdepartment within the Environment, Transportand Works Bureau since its establishment twodecades ago. The 20th anniversary of the departmentwitnesses the completion of a number of successfulprojects in recently years. To name a few: the HongKong Science Park, the Police Headquarters PhaseIII, the New Headquarters for EMSD, the WetlandPark, the New Territories South Regional PoliceHeadquarter, the Ma On Shan Sports Centre, theMargaret Trench Red Cross School and many than proudly handing over these completedprojects to our clients, we have also obtained awardsand merits for some of these outstanding works, suchas the Quality Building Award and the HKIA quantity Surveying Branch (QSB) is one of thesix functional branches, which have contributedtremendously to the success and achievements ofthe department.

3 One of the objectives of thedepartment is to deliver our quality services andcompleted products to our clients on time, with goodvalue for money and within budget. In upholding thisimportant objective, QSB effectively discharges itsexpertise in every facet of its interfaces with theproject teams in areas such as cost estimation,tender documentation and evaluation, payment, costcontrol and finalization of of our colleagues in QSB have been servingthe department for many years. They very often workunder pressure and always work hard to meetdeadlines. Their loyalty and dedication are deeplyappreciated. Their hard work can be represented bythe many public buildings erected in the past, whichstill serve well the people of Hong Kong. Our colleagueswill face with new challenges as the departmentdevelops and meets contemporary demands of thegovernment and the public.

4 I am confident that ourstaff can accomplish their formidable tasks as theydid in the wish that this booklet will enlighten the readers inthe department and in the industry alike, to march onwith us up the path to build an even better workingand living environment for the people of Hong Kongin the next 20 years and from theAssistant Director( quantity Surveying)Shum Kung-sherAssistant Director( quantity Surveying)This year the Architectural Services Department(ArchSD) celebrates its 20th Anniversary. TheQuantity Surveying Branch (QSB), as aconstituent branch since the department s inception,has progressed from strength to strength over thepast 20 years. With the joint effort and support of allthe staff in QSB, we have capitalized on ourprofessional expertise and capability in undertaking awide spectrum of services and made goodachievements with new and innovative developmentsin many aspects of our work.

5 Apart from playing asignificant part in leading and promoting the quantitysurveying profession in Hong Kong, QSB sets newstandards for the local construction provides quantity surveying services for allpublic building works within the purview of ArchSDincluding procuring new buildings, renovation orrefurbishment of existing buildings, and all thesubsequent maintenance. QSB also providesprofessional advice on behalf of the department topolicy bureaux, government departments, quasi-government bodies and subvented strive to maintain the highest possible standardsin the delivery of our services, which include traditionalquantity surveying services covering the preparationof cost estimates, tender documentation, post-contract administration, interim payment valuationsand finalization of accounts. New operating modesare introduced to improve our operation and computertechnology is also adopted in our services.

6 Havingbeen fully computerized in the delivery of our servicesfor both capital works and maintenance works, ourmeasurement and valuation services have also beenextended to cover building services works. On contractadministration aspects, QSB pioneered theintroduction of the Dispute Resolution Advisors System10 years ago and the system has operatedsuccessfully. We have gained valuable experience inadopting the Design and Build approach in theprocurement of projects not just for capital works butalso for minor works and fitting-out works. Ourexpertise has also been employed in developing theproject managing role of the respond to the needs and expectations of thelocal construction industry and the community atlarge, QSB has adopted a proactive strategy inplanning and formulating the delivery of its services,and will continue to seek improvement in this will respond to constructive suggestions forimprovement and will take proactive actions to elevatethe standard of our services.

7 In facing new challenges,we are prepared to explore new services for ourclients such as strengthening our role in advisoryservices, to utilize our experience and expertise inresearch and development that will benefit the buildingindustry and Hong Kong as a , I would like to take this opportunity to thankall my colleagues for their dedication and contributionsin the past 20 years which will form a solid foundationfor future quantity Surveying Branch (QSB) is one of thesix functional branches within ArchitecturalServices Department. Headed by the AssistantDirector ( quantity Surveying), there are four divisionswithin QSB, namely Division 1, 2, 3 and SubventedProjects Division. Division 1, 2 and 3 are each underthe supervision of a Chief quantity Surveyor and theSubvented Projects Division is headed by a ChiefTechnical Advisor.

8 There are also a number of individualgroups under each division consisting of seniorprofessionals, professional and technical 1 This Division is responsible for the provision of advisoryservices in respect of professional and technicalmatters such as consultant procurement andmanagement, preliminary project estimates, computerand information technology, quality assurance andprocedures, contract advices and technical are seven groups operating under Division estimating unit of this division has been providingadvisory services on the construction cost for theplanning of West Kowloon Cultural District 2 This Division is responsible for the provision of quantitysurveying services for government capital buildingprojects and it has five supporting groups. Thetype and nature of projects handled by the Divisionvary.

9 They may include primary and secondaryschools, special schools, hospitals, correctionalinstitutions, staff quarters, office buildings, lawcourts, libraries, sports complex, swimming pools,parks, police stations, and fire and ambulanceQuantity Surveying BranchThe Organisation of the5stations etc. Examples of some of the recentlycompleted projects handled by Division 2 areScience Park, Phase 1 in Shatin, Wetland Park inTin Shui Wai, EMSD Headquarters in Kowloon,Police Headquarters Phase III in Wan Chai, Lok MaChau Boundary Crossing, Castle Peak Hospital StageII, Phase 2 in Tuen Mun, and New Infectious DiseasesCentre attached to the Princess Margaret Hospitalin Lai Chi 3 This Division is responsible for the provision of quantitysurveying services for Minor Works, Maintenance,Fitting-out and the School Improvement Programme(SIP).

10 It comprises six groups, two located at the APBC entre, three at the Kwun Tong office and one atQueensway Government Projects DivisionThis Division provides professional, multi disciplinaryadvisory service to government departmentsresponsible for awarding public funds to privateorganizations delivering educational, health and socialwelfare facilities. In addition, the Division examinesand advises on government projects entrusted toprivate examining and commenting on constructioncost, best practice, development standards,consultant and contractor procurement processesthe Division ensures that subvented and entrustedprojects offer quality standards of design at reasonablecost levels. This is achieved through a dedicatedgroup comprising independent senior professionals,professional and technical officers working in concertto provide coordinated project advice through theChief Technical Chart ofthe quantity Surveying Branch7 The services and activitiesundertaken by the Branch8 Cost estimateProject estimates are essential information in thesubmissions for the upgrading and approval of projectsin the public sector.