Ref : WB(PS)105/88(98)

Group: 2, 5

1 April 1999

Works Bureau Technical Circular No. 15/99

Improvement to Quality of Maintenance Works

Scope

This circular sets out the action plan together with the monitoring
performance indicators to ensure that maintenance works are delivered by
contractors in accordance with the terms and standards specified in
maintenance contracts. It calls for the commitment of senior directorates
to bring about the culture change which is considered essential for the
continuous improvement to the quality of maintenance works.

Effective Date

2. This circular takes immediate effect.

Effect on Existing Circulars

3. This circular has no effect on existing circulars.

Background

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4. In recent years, the quality of maintenance works has aroused
serious concern of the general public, the media and the Government. In
order to ensure that the maintenance works are delivered in accordance
with the set standard, a series of meetings have been held with the works
departments involved in building and civil engineering maintenance
works. Based on the findings of the meetings, an action plan has been
formulated with a view to rectifying the situation.

Policy

5. A paper outlining the reasons leading to poor quality of

maintenance works and the action plan needed to tackle the problems has
been endorsed in a recent Works Group Directors Meeting. Departments
should implement the activities in the action plan and report their
progress to Works Bureau initially at quarterly interval for the next 24
months and thereafter subject to review in due course at less frequent
interval. At the same time, the achievements against the performance
indicators should also be reported for monitoring the improvement.

Major Observations on the Quality of Maintenance Works

6. The unsatisfactory quality of maintenance works can be reflected

by the premature failure and frequent re-execution of works due to poor
workmanship and defective materials, untidy site conditions, nuisance to
the neighbourhood, poor progress of the works and poor attendance to
routine and emergency works. Other observations include:

traffic lanes or footways occupied without works in

progress
unrealistic completion dates given in publicity signboards
unrecognizable characters/letters of signboards
uneven and excessive settlement of road surfaces due to
inadequate compaction of backfilled materials
bumpy surfaces created by temporary covers of road
openings
dislocated paving blocks
obstruction of traffic signs by maintenance works

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Reasons for Unsatisfactory Quality of Maintenance Works

7. One major reason for poor quality of maintenance works is the

entrenched and unhealthy culture of the maintenance sector constituted by
the irresponsible attitude of contractors, lax and lenient attitude of some
government staff and general disregard of the importance of maintenance
works. Other reasons identified are insufficient supervision and loose
control by our staff, and throat-cutting bidding of the contractors with an
intention to cut corners after they are awarded the contracts.

Action Plan for Implementation

8. To address the causes for unsatisfactory quality of maintenance

works, action plan has been formulated for each of the five departments
(Arch S D, CED, DSD, HyD and WSD) to follow. This action plan is
generally described in paragraphs 9 to 11 below and given in more detail
with implementation and reporting schedules in Appendix A.

9. The first group of actions relates to culture change. Regular

internal meetings with professional and supervisory staff are required to
instill in them the importance of quality of maintenance works and the
need for stringent supervision. This is quite similar to the so-called works
quality circles. To show the determination and commitment of the
departments, these internal meetings should be organized and chaired by
Directors and Deputy Directors. It is also necessary to have frequent
meetings with contractors including pre-tender meetings and progress
meetings after award of contracts for stressing to them that we are
stepping up the supervision and control, and emphasizing to them that
they take sole responsibility of the works even if the works are carried out
by sub-contractors. Performance of contractors have to be accurately
assessed and appropriate regulating actions are taken against poorly
performing contractors.

10. Departments have to press for improvement in quality of works

through stringent supervision, strict adherence to acceptance standard and
accurate assessment of contractors performance. For stringent
supervision, departments have to produce works instruction and
checklists to facilitate close supervision of works. Departments have to
develop and implement a technical audit system. Departments also have
to develop and put in place the management information system so as to
keep track of the status and progress of all works orders, thereby

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providing the objective data for preparing the contractors performance
reports and for compiling the achievements against the performance
targets/indicators in respect of quality of maintenance works.

11. To prevent throat-cutting bidding by poorly performing

contractors, pre-qualification should normally be conducted to screen out
this type of contractors prior to tendering. The basic rates must be
examined and updated regularly to ensure that they are reasonably close
to market values. It is necessary to avoid the use of star rates and
variation orders, and stick to the use of tendered rates so that contractors
know that they have to tender realistically. When departments require to
carry out maintenance works of specialist nature where appropriate
tendered rates are not available, priority should be given to adopt separate
contract arrangement in lieu of variation order. In deciding on change in
materials for repair and reconstruction involving the use of schedule
items with higher tendered percentages, justification must be submitted to
obtain the prior approval from officers at least at D2 level.

Monitoring by Performance Indicators

12. In conjunction with the action plan, a set of performance

indicators, as shown in Appendix B, is used to monitor the
implementation of the action plan. Initially the achievements against the
performance indicators will be monitored regularly by Works Bureau for
examination in Works Group Directors Meetings. In the long run, it is
intended to publish them in the Works Digest so as to allow public
scrutiny of the performance of the Works Departments and the
maintenance contractors.

Commitment by all Staff

13. The poor quality of maintenance works is largely a cultural

problem developed through years of inaction, disregard and indifference
by some of the practitioners in this sector of the construction industry.
Appropriate actions are desperately needed to rectify the situation.
However, substantial improvement cannot be achieved without
commitment of all the staff from Directors to Works Supervisors.
Directors have to convey this message to their staff so that all staff are
committed to improving the quality of maintenance works. Directors also

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have to give top priority to implement the activities in the action plan in
this technical circular and provide the necessary support to their staff.

(W S CHAN)
Deputy Secretary (Works Policy)

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 Appendix A

Action Plan to Improve Maintenance Works

Item No. Action Implementation/Reporting Schedule

1 Internal meetings with professional and supervisory staff at frequency To be implemented with immediate
no less than quarterly. Meetings are to be chaired by Director or effect. Notes of meetings should be sent
Deputy Director. Discussion in meetings should include but not to WB within the first 2 weeks of the
limiting to : following quarter (i.e. the first set of
notes of meetings should be despatched
t Promote the improvement to quality of maintenance works before 14.7.99).

t Works orders are completed on time, within budget and meet

the technical requirements

t Remind staff to accurately and objectively assess the

performance of the contractors

t Adequate stand-by/emergency resources are provided by

contractors as stipulated in the contracts

t Review the quality of maintenance works as well as complaints

received in the last quarter
2 Meetings with contractors to stress on improvement of maintenance To be implemented with immediate
works effect. During pre-tender meetings and
signing of contracts, contractors are to be
warned that we are stepping up control
and supervision and that they must carry

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 Item No. Action Implementation/Reporting Schedule
out works strictly in accordance with the
contract.
In addition, meetings with contractors at
frequency no less than quarterly must be
held to follow up what have been
discussed in the meetings under Item No.
1. These meetings should be conducted
preferably by the same Chairman as for
Item No. 1.
3 Issue work instructions/standard checklists to facilitate supervision of Work instructions/standard checklists
maintenance works shall be issued by 30.6.99. Thereafter,
they shall be reviewed annually.
4 Management Information System It is intended that WB will set up a
working group to study the development
of a standardized management
information system to keep track of the
status of each work order and
performance of contractor, and to
produce indicators of works quality. The
working group should be set up and
commence the study before 1.6.99.
Before the availability of the
standardized management information
system, departments should use their
own database systems (with
modification if necessary) to keep track
of the status and progress of each works
order and performance of contractors.

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 Item No. Action Implementation/Reporting Schedule
5 Quarterly Maintenance Quality .Day WB together with an AD from each
works department, will jointly tour
around maintenance works sites (chosen
at random) for one day every quarter.
This day is called Maintenance Quality
Day. During the tour, quality of works
on site will be appraised according to
departments checklists.
6 Performance Indicators for Maintenance Works A set of performance indicators for
maintenance works is at Appendix B.
They reflect the performance of the
works departments and contractors in
respect of the maintenance works.
Departments should submit quarterly
return to WB within 15 days immediately
after the expiry of each quarter. The first
quarterly return will cover the period
from 1.4.99 to 30.6.99 and be submitted
before 15.7.99 for each maintenance
contract and for each department.
7 Technical Audit Technical audits on maintenance works
shall commence with immediate effect.
Each department shall determine its own
frequency of technical audits and the
sampling rate of works order and inform
WB accordingly. Apart from including it
as an item in performance indicators in
Appendix B, a more detailed summary of

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 Item No. Action Implementation/Reporting Schedule
the audit results shall be submitted to
WB every 3 months.
8 Prequalification of contractors Prior to tendering of maintenance
contracts, departments shall critically
consider if there is a need to conduct
prequalification exercise.
9 Review on schedules of rates With immediate effect, a review of the
rates shall be conducted and completed
prior to tendering for all future
maintenance contracts.
10 Standardization of reasons/explanation by notice board for temporary With immediate effect, for works
suspension of works exposed to the public, notice shall be
displayed whenever the works are
temporarily suspended. The notice
boards shall be to the standard design
issued by Highways Department and
with standardized reasons.
11 Training The updated training materials kept by
departments shall include the quality of
maintenance works. New supervisory
staff shall be given training on this aspect
within 3 months of their
posting/recruitment to the departments.
12 Control on the use of star rates With immediate effect, star rates shall
not be used without justification and
prior approval from officers at least at
D2 rank. When tendered rates are not
applicable, it is better to adopt separate

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 Item No. Action Implementation/Reporting Schedule
contract arrangement. By minimizing
the use of star rates and variation orders,
contractors will understand the
importance to tender realistically.
13 Control on the change in maintenance materials For repair and reconstruction with
change in materials involving the use of
schedule items with higher tendered
percentages, justification shall be
submitted to obtain the prior approval
from officers at least at D2 level. This
action shall be implemented with
immediate effect.

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 Appendix B

Performance Indicators for Maintenance Works

Department :
Whole Department/Contract No. : *

Indicators Performance

Item No.
99/00
Description Unit 98/99
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year Total
1 Percentage adjustment to the Schedule of rates offered by the %
contractor**
2 Public complaints on maintenance works received with No.
breakdown into different nature of complaints
(to be listed by department at sub-items b, c, d, etc.)

a. Total

b.

c.

d.

3 Average time taken to resolve public complaints received Hr./Day*

4 Target time for attendance to emergency and the percentage of
incidents that the target time is met (Target time : ) %
5 Number of works orders issued late to contractor No.

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 Indicators Performance

Item No.
99/00
Description Unit 98/99
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year Total
6 Number of works orders which incur delay in commencement
with breakdown in the days of delay

a) less than 7 days No.

b) more than 7 days but less than 14 days No.

c) more than 14 days but less than 30 days No.

d) more than 30 days No.

7 Number of works orders which incur delay in completion with
breakdown in the days of delay

a) less than 7 days No.

b) more than 7 days but less than 14 days No.

c) more than 14 days but less than 30 days No.

d) more than 30 days No.

8 Percentage of works orders audited (the long term target being %
10%) and, out of those works orders audited, the percentage of
works orders found to be satisfactory %
9 Percentage of value of work executed as star rate items or %
covered by variation orders

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 Indicators Performance

Item No.
99/00
Description Unit 98/99
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year Total
10 Percentage of works with change in materials in repair and %
reconstruction involving the use of schedule rates of higher
tendered percentages
11 General comments on performance of maintenance contractors Enter VG
(and their performance index if the Contractors Performance for very
Index System is established) good; S
for
satisfactory;
P for poor

* Delete whichever inappropriate

** Enter the overall contract percentage adjustment for the accepted tender in the latest tendering exercise

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