Construction Industry Council - Annual Report 2024

CONSTRUCTION INDUSTRY COUNCIL 86 OPERATIONAL REVIEW Consultancy Study on Review and Enhancement of Construction Contract Terms The consultancy study has been completed, reviewing various contract forms commonly adopted in Hong Kong across both public and private sectors. Based on the pain points related to risk-sharing identified in stakeholder interviews, short-, medium- and long- term recommendations were proposed. Additionally, representatives from industry institutions and associations have been invited to provide feedback on the findings and recommendations of the study. Simultaneously, steps have been taken to implement these recommendations in advance by preparing best practices for change management, final account settlement and sub-contractor management, ensuring fair compensation, timely payments, optimised cash flow, and increased transparency throughout sub- contracting tiers. Collaborative Meetings and Workshops to Address Industry Financial Issues Considering the current market situation of the industry, the Committee facilitated meetings and workshops between banking professionals and industry stakeholders to address the financial challenges faced by the industry, identify solutions offered by banks, and explore potential opportunities to improve cash flow within the sector. Way Forward In line with one of the focus areas in the CIC’s three- year strategic plan, the Committee will continue to explore measures and promote best practices to enhance the business environment, and support DEVB in completing preparatory tasks for the implementation of the Construction Industry Security of Payment Ordinance and provide relevant training for industry practitioners. Seminars on NEC Engineering and Construction Contract (ECC) and Term Services Contract (TSC) The Committee, collaborating with the Development Bureau (DEVB) and the NEC, organised seminars on 9 and 18 July 2024, focusing on the latest development in the NEC for public works contracts in Hong Kong. These included briefings on the NEC ECC Hong Kong Edition and NEC ECC/TSC for building projects. Furthermore, in response to the increasing use of NEC4 TSC in Building and Electrical & Mechanical (E&M) Works, the NEC TSC Hong Kong Edition was drafted by NEC and DEVB and launched this year. A co-organised briefing seminar was held on 29 November 2024. Briefing Seminar on NEC TSC Hong Kong Edition on 29 November 2024