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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, environment, manpower and dispute resolution over the last 13 years (2001 ~ 2013).

PRODUCTIVITY

In 2013, the Builder’s Works Tender Price Index reached the highest level over the past 13 years. 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. It also recorded the highest level over the past 13 years. Correspondingly, the number of manual workers employed per HK$1,000,000 gross value of construction works has been decreasing over the same period, followed by a rebound in 2013.

HEALTH AND SAFETY

A generally decreasing trend of industrial accident rate / number was recorded in the last 13 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 and 2013, the numbers rebounded significantly in all sectors. In general, the public sector demonstrated a better performance than the private sector in this area.

 

ENVIRONMENT

The consumption of resources and energy in the construction industry fluctuated between 2001 and 2012. The building energy use in the Residential and Commercial sectors showed an increasing trend in the recent years while that of the Industrial sector has been decreasing gradually since 2004. For the construction waste generated from the Hong Kong construction industry, there has been an improvement since 2006 and kept at a low level in the recent years.

MANPOWER

The salaries of craft and related workers / elementary occupations were lower than the Hong Kong median monthly earnings and also the industry median earnings, while the managers and administrators / professionals / associate professionals as well as the industry median monthly earnings had a higher median salary than the Hong Kong median monthly earnings. In 2013, the median salary in the construction industry increased by 12.5% compared to 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 6 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 between 2007 and 2012 in the retention rate of graduates for the basic craft courses and Construction Supervisor / Technician Programme provided by the CIC. The retention rate showed a drop by 8.8% in 2013, compared to the year before.

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 and recorded the lowest level in 2013, over the past 13 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 KPIs (P3 ~ P7, HS1 ~ HS3, E1 ~ E3, M1 ~ M3 and DR1 ~ DR3) over the last 13 years (2001 ~ 2013) 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

kpit1e

kpit2e

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
E1 Consumption of Resources and Energy per HK$1,000,000 Gross Value of Construction Works
  E1.1 Whole Industry
  E1.2 Civil Works
  E1.3 New Building Works
E2 Building Energy Use
  E2.1 Residential Building
  E2.2 Commercial Building
  E2.3 Industrial Building
E3 Construction Waste (tonnes) to Landfill per day per HK$1,000,000,000 Gross Value of Construction Works
  E3.1 Whole Industry
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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