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Introduction

EXECUTIVE SUMMARY

This is a construction industry performance report published by the Construction Industry Council (CIC). The information in this report, verified by Rider Levett Bucknall Limited, provides an overview of the performance of the Hong Kong Construction Industry in terms of productivity, health & safety, manpower and dispute resolution over the last 12 years (2001 ~ 2012).

PRODUCTIVITY

Tender price indices rose between 2004 and 2008. Following a fall in the fourth quarter of 2008, tender price indices went up again in the third quarter of 2009. Both the percentage of gross value of construction works to Gross Domestic Product and the percentage contribution of construction activities to Gross Domestic Product at basic prices have been increasing since 2008 after a continuous decreasing trend from 2002. The recent increase was mainly due to the increase in the number of new projects in the public sector. The gross value of construction works per capita has been increasing since 2009, largely due to the increase in gross value of the public sector construction works per capita. Correspondingly, the number of manual workers employed per HK$1,000,000 gross value of construction works has been decreasing over the same period.

HEALTH AND SAFETY

A generally decreasing trend of industrial accident rate / number was recorded in the last 12 years. Whilst there was an improving performance in most categories or sectors in this aspect, improvement in fatal accident rate was not obvious. There was a general trend of improvement in terms of summonses under the Factory and Industry Undertaking Ordinance and Occupational Safety & Health Ordinance before 2011, but in 2012, the numbers rebounded in all sectors. In general, the public sector demonstrated a better performance than the private sector in this area.

MANPOWER

The salaries of craft and related workers / elementary occupations were lower than the Hong Kong median monthly earnings and also the industry median, while the managers and administrators / professionals / associate professionals had a higher median salary than the Hong Kong median monthly earnings as well as the industry median. The salary differences between different groups of employees remained largely unchanged in the last 5 years. The median salary in the construction industry was the same as the Hong Kong median salary in 2012.

Just over 30% of the currently registered workers are under the age of 40. The number of registered workers in this age group has been decreasing steadily over the last 5 years although the number of registered workers with mandatory basic safety training course (green card) in the same age group has remained largely unchanged. There has been an improvement trend since 2007 in the retention rate of graduates for the basic craft courses and Construction Supervisor / Technician Programme provided by the CIC

DISPUTE RESOLUTION

The number of construction related court cases registered at the High Court Registry had been decreasing gradually from 2003 to 2009. A rebound happened in 2010, while the number decreased again in the recent years. The number of arbitration cases in construction industry handled by Hong Kong International Arbitration Centre (HKIAC) increased significantly in 2006 and was kept at a high level during 2007 and 2008. There has been a drastic decreasing trend since 2009. In 2011, the number decreased by 51.9% compared to the year before. The number of labour disputes in construction industry handled by Labour Department (each case involves more than 20 employees) has been decreasing since 2003.

INTRODUCTION OF KEY PERFORMANCE INDICATORS (KPIs)

The KPIs for the Hong Kong Construction Industry are classified into 5 areas and presented in 4 categories and 2 sectors as listed in Table 1. Descriptions of the KPIs are provided in Table 2.

Table 1 – Classification of KPIs

5 Areas

4 Categories

2 Sectors

  • Productivity (7 KPIs)
  • Health & Safety (3 KPIs)
  • Environment (3 KPIs)
  • Manpower (3 KPIs)
  • Dispute Resolution (3 KPIs)
  • Whole Industry
  • Civil Engineering Works
  • New Building Works
  • RMAA Works
  • Public
  • Private

During the data collection exercise for the first stage KPIs, further division of the KPIs has been found necessary due to some deviation of the available data coverage from the original intention. Such further division of the KPIs and their descriptions are provided in Table 3.

The KPIs will be launched by stages based on availability of data and the programme for new data collection.

The performance of the Hong Kong Construction Industry in terms of the first stage KPIs (P3 ~ P7, HS1 ~ HS3, M1 ~ M3, DR1 ~ DR3) over the last 12 years (2001 ~ 2012) is presented in this report. The data used for the computation of KPIs has been verified by Rider Levett Bucknall Limited.

Table 2 – Construction Industry KPIs  

kpit1

kpit2

Table 3 – Further Division of First Stage KPIs

Key Performance Indicators
P3 Construction Cost Indices
  P3.1 Builder's Works Tender Price Index (RLB) (4Q 1968=100)
  P3.2 Building Works Tender Price Index (ArchSD) (1Q 1970 = 100)
  P3.3 Building Services Tender Price Index (ArchSD) (new base schedule 2007)
P4 Percentage of Gross Value of Construction Works to GDP
  P4.1 Whole Industry
  P4.2 Civil Works (Structures & Facilities)
  P4.3 New Building Works (Buildings)
  P4.4 RMAA Works
  P4.5 Public Sector Construction Site
  P4.6 Private Sector Construction Site
P4a Percentage Contribution of Construction Activities to GDP at Basic Prices
   
P5 Gross value of Construction Works per Capita
  P5.1 Whole Industry
  P5.2 Civil Works (Structures & Facilities)
  P5.3 New Building Works (Buildings)
  P5.4 RMAA Works
  P5.5 Public Sector Construction Site
  P5.6 Private Sector Construction Site
P6 Number of Manual Workers Engaged per HK$1,000,000 Gross Value of Construction Works
(at Construction Sites)
  P6.1 Whole Industry (except RMAA Works)
  P6.2 Civil Works (at Civil Engineering Sites)
  P6.3 New Building Works (at Building Sites)
  P6.4 Public Sector Construction Site
  P6.5 Private Sector Construction Site
P7 Number of Manual Workers Engaged per 1,000 sq. m. Gross Floor Area
    New Private Building Works (at Private sector)
HS1 Industrial Accident Number / Rate (Reportable Industrial Accidents per 1,000 Manual Workers)
  HS1.1 Whole Industry (Number)
  HS1.2 New Works (Rate)
  HS1.3 RMAA Works (Number)
  HS1.4 Public Sector Sites (Rate)
  HS1.5 Private Sector Sites (Rate)
HS2 Fatal Accident Number / Rate (Fatal Accidents per 100,000 Manual Workers)
  HS2.1 Whole Industry (Number)
  HS2.2 New Works (Rate)
  HS2.3 RMAA Works (Number)
  HS 2.4 Public Sector Sites (Rate)
  HS 2.5 Private Sector Sites (Rate)
HS3 Number of Summonses Convicted per HK$100,000,000 Gross Value Of Construction Works
  HS3.1 Whole Industry
  HS3.2 New Works
  HS3.3 RMAA Works
  HS3.4 Public Sector
  HS3.5 Private Sector
M1 Workers' Wage Index
    Hong Kong Construction Industry - Employed Persons' Median Wage
M2 Workers' Aging Index - % of Registered Workers Under and Above the Age of 40
  M2.1 Whole Industry
  M2.2 Registered workers with Mandatory Basic Safety Training Course (Green Card)
M3 Retention Rate of Graduates (Basic Craft Courses And Construction Supervisor / Technician Programme Provided By CIC)
    Retention Rate of Graduates (after 12 Months from Works)
DR1 Number of Construction Court Cases
     
DR2 Number of Construction Arbitration Cases
     
DR3 Number of Construction Labour Disputes

Enquiries

Enquiries on this publication may be made to the CIC Secretariat at:

CIC Headquarters
38/F, COS Centre
56 Tsun Yip Street, Kwun Tong
Kowloon
 
Tel: (852) 2100 9000
Fax: (852) 2100 9090
Email: enquiry@cic.hk
Website: www.cic.hk

Disclaimer

This publication is prepared by the Construction Industry Council (CIC) in collaboration with Rider Levett Bucknall Limited (RLB) to report findings on specific subjects for reference by the industry and is not intended to constitute any professional advice on these or any other subjects. Whilst reasonable efforts have been made to ensure the accuracy of the information contained in this publication, the CIC nevertheless would encourage readers to seek appropriate independent advice from their professional advisers where possible and readers should not treat or rely on this publication as a substitute for such professional advice for taking any relevant actions.


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