DSSOPT mulling introduction of penalty clauses

The Public Works Bureau has set up a special task force to study the suggestions of the Audit Commission on public works and is reviewing its current mechanism, said Li Canfeng, Director of the Land, Public Works and Transport Bureau (DSSOPT) in a written reply to legislator Chan Meng Kam’s enquiry.
The legislator slammed the government for the poor supervision of public projects, naming the ventilation system at the Border Gate bus terminal, the Science Bureau, the Taipa Central Park and the quality issue of public housing buildings.
Chan questioned the authorities for having little to no supervision or penalty system in place to manage public works, directly resulting in the poor quality of many projects.
Mr. Chan pointed out that the government had failed to supervise the inspection company with regard to the Taipa Central Park case. He urgesd the government to review the current administrative system and put the accountability system into practice.
The DSSOPT director said in his reply that the Bureau accepts the Audit Commission’s report and is reviewing the current system, including the supervision and internal working methods.
Li Canfeng named a few measures, including promptly dealing with construction working time extension application, and enhancing supervision on outsourcing works, such as supervision. Li stressed that if the supervision company failed to fulfil the obligation, penalties would be applied and the contract even terminated.
In addition, the DSSOPT director said the Bureau – along with the Infrastructure Development Office (GDI) and the Transportation Infrastructure Office (GIT) – is reviewing the mechanism for tender evaluation, especially in introducing compensatory penalties on public works projects.
Li said the government will study the possibilities based on current laws and may introduce penal clauses in future public works contracts in order to push the contractors to finish their job on time.