The Audit Commission issued a new audit report today (23rd), revealing that in the Anderson Road development project, the authorities had substantially changed the design details of the footbridge system, causing the contractor to file a claim for an extension of the contract period and to recover the extension fee , the government signed a supplementary agreement and paid more than 70 million yuan to speed up the completion of the project and settle the claims.
Checking the contracts of the Civil Engineering Department, the contractor involved is China State Construction.
All in all, the total cost of the entire project was about 3 billion yuan, which was 1 billion yuan more than the original contract awarded.
The report also revealed that during the construction period, the contractor had six accidents involving slopes, such as falling concrete piers, landslides due to problems with the temporary drainage system, etc. It will be completed about 2.6 years after the expiry of the contract; as for the planting and beautification works and the cultivation works, it will take a long time, and will be completed in stages 3 to 5 years after the contract is completed.
The Audit Commission released its latest audit report today (23rd), which focuses on the problems arising from the Anderson Road development project.
(File photo/photo by Li Zetong)
2.063 billion contract for leveling 20 hectares of land and building three pedestrian bridges
Paying the bill and overspending changed to 2.844 billion
In January 2008 and January 2013, the Civil Engineering and Development Department awarded 2 works contracts to 2 contractors respectively, of which Contract A mainly involved the formation of a building platform of about 20 hectares and related geotechnical and slope stabilization works , and the construction of pedestrian bridges A to C, the Audit Commission has not disclosed the identity of the contractor, but after searching public records, the contract was won by China State Construction Engineering (Hong Kong) Co., Ltd., worth 2.063 billion yuan, but as of October 2021 , the actual contract expenditure was 2.8443 billion yuan, an overrun of about 780 million yuan.
The original completion date was July 2014, but it was finally roughly completed in December 2016.
The Anderson Road development involves two contracts. Contract A is responsible for the formation of a building platform of about 20 hectares and the associated geotechnical and slope stabilization works, as well as the construction of footbridges A to C.
(Audit Report)
Supplementary agreement for 141 changes to pedestrian bridge system involving more than 70 million
The audit report pointed out that the above-mentioned contract stipulated that in addition to land leveling, three footbridges were also to be built, namely, the footbridge A connecting On Tai Estate to Li On Road, the footbridge B connecting Anda Estate to Sau Mau Ping Road, and the footbridge connecting Anda Estate to Po Lam Road. The flyover C.
The CEDD pointed out that the design of the flyover had considered the proposed housing development plan at the time, but in response to changes in development, such as public and private housing plans being changed to uniformly build public housing, traffic review studies, etc., the engineering consultant instructed and reported to China The construction company issued 141 "change orders" to revise the details of the flyover project, such as lengthening and reorientation, etc., and built a fourth flyover as needed, and awarded another new contract worth 160 million.
China State Construction subsequently lodged a claim with the government, requesting an extension of the contract period and recovering the late completion costs.
The Civil Engineering and Development Department signed a supplementary agreement with the contractor in February 2014. According to the agreement, the government has to pay 70.1 million yuan to compensate for the rush cost.
All in all, the total cost of the entire project was about 3 billion yuan, which was 1 billion yuan more than the original contract awarded.
The Audit Office suggested that when the authorities promote land leveling and infrastructure projects in the future, they should finalize the project design before the contract bidding, so as to avoid the contractor’s claims due to major changes to the design after the contract is awarded, and consider the details of the project, such as pedestrians. Before finalizing the flyover, carefully consider corresponding measures to reduce claims and disputes caused by design changes.
The four new overpasses have been suspended 183 times for a maximum of 10 days
After the completion of the project, there are also "hand tails". The Audit Office found that from the beginning of 2019 to December 2021, the elevators of the four new flyovers built above were suspended 183 times in the three years, with an average of 10 hours each time. A lift on the Wo Lee On Road Flyover will be suspended for up to 242 hours (that is, about 10 days).
The Audit Commission recommends that the Government should closely monitor whether the lifts at pedestrian bridges are operating normally, and take improvement measures as necessary.
From 2009 to 2015, there were 4 slope accidents and 2 accidents
The audit report also revealed that during the construction period of China State Construction, there were six accidents involving slopes.
One of the concrete pier falling accidents occurred in May 2009. The investigation found that no protective measures were taken at the edge of the slope or at the lower part of the slope to prevent any material from rolling down the slope, and the positive measures taken by the frontline supervisors and workers In case of weak awareness of falling objects.
As for the other 3 landslip incidents, 2 occurred in May 2013 and 1 occurred in May 2015, all of which were related to the insufficient treatment capacity of the temporary drainage system; the other 2 involved retaining walls under construction The accidents of destruction occurred in July and September 2012 respectively.
The audit report also revealed that during the construction period of China State Construction, there were six accidents involving slopes. The picture shows the details of the accidents.
(Audit Report)
The Audit Office suggested that the CEDD should remind the contractors to take appropriate and sufficient protective measures when slope works are involved, and follow the guidelines on temporary drainage systems and rainstorm prevention measures.
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The maintenance work will be largely completed after 2.6 years after the expiry of the maintenance period
The audit report also found that after the completion of the leveling project, the contractor, China State Construction, still has to pay for maintenance for a period of 12 months. The period has expired for about 2.6 years, and the landscaping and planting works have not yet been completed.
Planting beautification works and cultivation process beyond the contract completion time
The audit report mentioned that the contract for the Anderson Road development plan, including beautification works and cultivation works, was delayed until January 2020 to September 2021 to complete in phases, when the project contract was completed 3 to 5 years after completion, while The relevant inspection and handover procedures were originally scheduled to be completed in the second quarter of 2022, while the accounts of the engineering contract will not be settled until the third quarter of 2022.
5.4 years after the completion of the contract, the review was far beyond a reasonable time
According to the "Civil Engineering Management Manual" issued by the Civil Engineering and Development Department, the contract will be reviewed within half a year after the completion of the contract. Unless the total expenditure of the project is less than 500 million yuan or does not involve complicated technical and management issues, no review is required.
However, as of October 2021, the project plan involves a huge project expenditure of 3.5221 billion yuan, which should have been reviewed within a reasonable time, but the review was only completed in May 2022, when the contract had been completed for about 5.4 years.
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