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Audit Report | Unsatisfactory project management of the Civil Engineering Department expends 32 million public funds to China Construction Reconciliation

2021-04-30T16:56:03.121Z


In the early years, the government promoted the "Development of Choi Wan Road and Jordan Valley Adjacent", which later developed into the current Choi Tak Village, Choi Fu Village, and Choi Ying Village. In the latest report of the Audit Commission, it was found that among the three engineering contracts


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Written by: Wang Jieen

2021-04-28 14:09

Last update date: 2021-04-28 14:09

In the early years, the government promoted the "Development of Choi Wan Road and Jordan Valley Adjacent", which later developed into the current Choi Tak Village, Choi Fu Village, and Choi Ying Village.

The latest report of the Audit Commission found that all of the three engineering contracts awarded at the time were later than the original contract completion date, which was delayed by more than one year at the longest.

Among them, the basic engineering contract was even more controversial. In the end, the government had to pay 32 million yuan to the contractor, China Construction, to settle the settlement. Together with other overspending projects, the contract amount increased from 1.338 billion yuan to 1.7 billion yuan at the time of settlement.

The Audit Commission also found that there had been blasting activities on the same contract site, but there were two incidents of flying rocks. The windows of the housing estates were damaged and 9 people were slightly injured.

In addition, the report also revealed that the consultant submitted the documents to the Geotechnical Engineering Office more than one year after the completion of the contract, and conducted a final audit of the completed slope, but eventually found that the slope needed improvement works.

The "Cai Wan Road and Jordan Valley Adjacent Development Project" was developed into the current Choi Tak Village, Choi Fu Village and Choi Ying Village.

According to the audit report, the original three contracts were all later than the original contract completion date by more than one year at the longest.

(Data Picture/Photo by Gao Zhongming)

All three contracts were delayed in completion

The audit report did not disclose the contract name and contractor information. However, the government contract record was checked. The contract A mentioned in the report, namely the development site formation and related infrastructure works of Choi Wan Road and Jordan Valley, was contracted by China Construction Engineering. (Hong Kong) Limited Company.

As for contracts B and C, they are the remaining infrastructure works of the Choi Wan Road and Jordan Valley Development Project-Phase 1 and the remaining infrastructure projects of the Choi Wan Road and Jordan Valley Development Project-Phase 2 respectively. The contractors are Maeda Construction Industrial Co., Ltd. and Hypo Construction Co., Ltd.

The audit report pointed out that the land leveling infrastructure project started in 2001 and was completed in October 2010.

At that time, the Civil Engineering and Development Department awarded three construction contracts to three contractors. The land was later developed into public rental housing, but all were later than the original contract completion date.

Among the three contracts, site formation and related infrastructure works have the longest delay, which is 13.9 months or more than one year, totaling 422 days.

The remaining contracts were delayed by 8.8 and 9.4 months respectively. The former included the construction of a footbridge across Choi Wan Road and Kwun Tong Road, and the latter included the construction of a footbridge connecting Choi Ha Road to the lower open space.

The contract is disputed and the government pays 32 million to settle

The audit report pointed out that there had been disputes with China Construction in the land formation project. At that time, China Construction pointed out that the Civil Engineering and Development Department could not arrange the land for disposal of materials in a timely manner, so it had to stack and handle the disposal materials and incurred additional expenses. Claim additional payments.

The contract also involved other disputes, including China State Construction's claim on the valuation of materials used to strengthen the slope.

In addition, the report also pointed out that the quantity and quality of stone materials delivered by China Construction to the Shek O Quarry were insufficient and of poor quality. Another contractor had also claimed additional payment for this.

The government must then pay the other party to settle the matter, and then file a counterclaim against China State Construction Engineering Corporation.

In the end, the government signed a settlement agreement with China State Construction in November 2018. The government paid 32 million yuan to the other party to settle, resulting in other overspending expenses. The total leveling project contract expenditure was estimated at 1.338 billion yuan, and the bill became about 1.7 billion yuan. .

The Audit Commission believes that in the future implementation of engineering contracts involving the excavation and disposal of discarded materials, the agency needs to closely monitor the effectiveness of the enhanced control measures for the management of discarded materials; and the agency should also take measures in the preparation of engineering contract documents in the future. Measures to strictly verify contract documents in accordance with relevant guidelines.

Contract A in the development plan adjacent to Choi Wan Road and Jordan Valley mainly involves the excavation of materials on site by blasting methods and the leveling of about 20 hectares of building platforms and related slopes and retaining walls.

(Website of the Institution of Engineers)

The change order increases the actual cost by 3.2 to 2.8 times

The report also found that the Land Development Department issued three "change orders" in the remaining infrastructure projects of the Choi Wan Road and Jordan Valley Development Project-Phase II, which increased the actual cost by 280% to 327% from the estimated cost. , An increase of approximately 1.099 million and 910,000 yuan.

In addition, the report also mentioned that the consultant once said that the steel grade of the construction bill of materials of the above project did not meet the requirements of the contract drawing. In the end, the department had to pay 1.2 million yuan to the contractor Huibao Construction Co., Ltd. for omissions. The works involved in the project.

The Audit Commission recommended that the Civil Engineering and Development Department need to remind its staff and consultants to follow these guidelines when preparing documents for engineering contracts in the future.

Blasting activities have damaged windows and slightly injured 9 people

The Audit Commission also found that there were blasting activities on the site during the leveling project, but there were two incidents of flying rocks, which caused damage to 5 units and 8 windows in a private housing estate in February 2003; June 2003 9 people were slightly injured in the month, and 4 cars and property were damaged, including the covers and railings of 2 bus stops.

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Audit Report Civil Engineering and Development Department

Source: hk1

All news articles on 2021-04-30

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