paul y. construction company, limited

Paul Y. Construction

Company, Limited

West Island Line Contract No. 713

Re-Provisioning of Kennedy Town Swimming Pool (Phase 2)

NEC3 Option A - Project Mid-Term Report Card : 10th November 2015

Nov 2015

Content

Part 1: Project Information

Part 2: Project Constraints & Challenges

Part 3: Adoption of NEC3 Option A with MTRCL Amendments

Part 4: NEC3 Project Workflow

Part 5: Implementation of NEC3 to enhance productivity

Part 6: Typical Presentation Materials used in Risk Reduction

Meetings

Part 7: NEC3 Benefits & Challenges

Part 8: NEC3 Project Experience Sharing

Part 9: Mid-term Achievements

Nov 2015

PART 1

Project Information

Nov 2015

Project Information Summary

Phase 1 Phase 2

Contract No. Contract 710 Contract 713

Contract Start Date 14th July 2009 1st September 2014

Contract Completion Date 14th March 2011 30th October 2016

Contract Period 20 months 26 months

Form of Contract MTR Lump Sum Contract NEC3 Option A (with relevant clauses of MTR Conditions of

Contract)

Contract Sum (Approx.) HK$ 311 million HK$ 671 million

Total Gross Floor Area 13,494 m2 7,058 m2

Final Account Agreement April 2011 November 2016 (envisaged)

Project Name Re-Provisioning of Kennedy Town Swimming Pool

Nov 2015

Scope of Work Summary

1. Bored Piles and Pile Caps 2. Superstructure – RC and Structural Steel 3. Architectural Building Works and Finishes 4. Phase 1 Interfacing and Improvement Works 5. Building Services 6. Built-in Furniture 7. Landscaping

Nov 2015

19

1/F Plan +13.500 mPD : Pool Deck

Phase 2 Phase 1

Multipurpose Pool

15m x 25m

Training Pool

12.5m x 15m

Jacuzzis

Main Changing Rooms

on Split Levels

Family cum Disabled

Changing Rooms

Project Information – Building Facilities

15 30

Leisure Park

Zone1 Zone2 Zone3

G/F Floor Plan + 4.5 mPD : Leisure Park

Nov 2015

Project Information - Completed Roof 3D Layout

• 3D View

PTFE Layer

VM Zinc Roof Cladding

Sunshading Area

Structural

Steel Frame

Nov 2015

Duranta repens golden

假連翹

Tabebuia rosea

紅花風鈴木

Tabebuia tabebuia chrysantha

黃花風鈴木

Timber Benching Granite paving varying in color and size

Project Information – Leisure Park

Nov 2015

PART 2

Project Constraints & Challenges

Nov 2015

Phase 2 Constraints & Challenges:

Nov 2015

Project Constraints & Challenges:

1. Previous Experience on NEC3 – NONE! 1st NEC3 Contract for both MTRCL &

Paul Y.

2. NEC3 training – Extensive NEC3 training given to MTRCL and Paul Y staff

during early part of the Project.

3. Only 1 site logistic route.

4. Triangular Shape Site – surrounded by busy roads.

5. Tight working schedule – Contract period = 26 months.

6. Interface work to integrate Phases 1 and 2 – Tight work schedule - to complete

in 10 months (Dec 15 to Sept 16) to comply with LCSD Phase 1 operation

requirement.

Nov 2015

Project Constraints & Challenges (Cont.):

7. Stakeholder involvements –

• Leisure and Culture Service Department (LCSD)

• Architectural Service Department (ASD)

• Electrical and Mechanical Service Department (EMSD)

• Drainage Service Department (DSD)

• Railway Development Office (RDO)

• Central & Western District Council (C&WDC)

• Local residents

Nov 2015

Part 3:

Adoption of NEC3 Option A with

MTRCL Amendments

Nov 2015

Purposes of Amending NEC3 Clauses

i. Suit MTRCL Practice

ii. Meet Local Practice

iii. Satisfy Current Project Nature

Nov 2015

Purpose of Amending NEC3 Clauses

• Revise the date for PM to certify Completion from within 1

week to within 1 month of Completion

• Suit MTRCL’s required time in processing Completion

application

Example 1: Clause 30.2


• Original • Amendment

Suit MTRCL’s Practice

Clause 30.2

• “The Project Manager decides the date of

Completion. The Project Manager certifies

Completion within one week of Completion.”

• “The Project Manager decides the date of

Completion. The Project Manager certifies

Completion within one month of

Completion.”

Nov 2015


• Code of Conduct is one of MTRCL’s core values

• To ensure this commitment, relevant clauses are added

Example 2: Clause 91.8 added


• “The Contractor, any subcontractor or any employee does not offer, given or

taken any gratuity, bonus, discount, bribe or loan of any sort to an employee of

the Employer, to the Project Manager or to any member of the Project

Manager’s staff or to the Supervisor or to any member of the Supervisor’s staff.

If so discovered the Employer forthwith requires the dismissal and removal from

the Site of such subcontractor or employee and holds the Contractor liable for

any loss or damages which the Employer sustains. In the event the Contract

that defaults then the Employer may terminate forthwith the Contractor’s

obligation to Provide the Works as if for any of the reasons R1-R15 under

Clause 91, and hold the Contractor liable for any loss or damage which the

Employer may thereby sustain.”

Nov 2015


• Parent Company Guarantee and Performance Bonds are to be

provided before payment made by MTRCL

Example 3:


Clause X4.3 added

• “No payments which may otherwise have become due under the

Contract shall be made by the Employer to the Contractor until such

time as the guarantee referred to in Clause X4.1 has been accepted by

to the Employer.”

Clause X13.2 added

• “No payments which may otherwise have become due under the

Contract shall be made by the Employer to the Contractor until such

time as the bond referred to in Clause X13.1 has been accepted by to

the Employer.”

Nov 2015


• Additional clauses are added to make sure the guarantee is

submitted by individual JV partners of the Contractor if

applicable.

Example 4: Clause X4.2 added


• “If the Contractor comprises two or more companies acting in

partnership, joint venture or otherwise, the Contractor gives to the

Employer a parent company guarantee in respect of all companies

acting in partnership, joint venture or otherwise and additionally a joint

and several guarantee executed by all such companies both in respect

of the Contractor’s performance and in the forms set out in the Works

Information. If the guarantees were not given by the Contract Date, it is

given to the Employer within four weeks of the Contract Date.”

Nov 2015


• NEC3 Contract is originally published in United

Kingdom (UK)

• Weather conditions are based on UK’s climate

• Contract clauses are amended based on local

weather conditions in Hong Kong


Nov 2015

Original

• “A weather measurement is recorded

– Within a calendar month,

– Before the Completion Date for the

whole of the works and

– At the place stated in the Contract

Data

The value of which, by comparison with

the weather data, is shown to occur on

average less frequently than once in ten

years.

Only the difference between the weather

measurement and the weather which the

weather data show to occur on average

less frequently than once in ten years is

taken into account in assessing a

compensation event.”

Amendment

• “A weather measurement is

recorded as one or more of the

following weather conditions:

– The hoisting of tropical

cyclone warning signal No.

8 or above, or

– A Black Rainstorm

Warning.”



Example 5: Clause 60.1(13)

Nov 2015


Contract Data Part One was amended to cover re-

measurement of piling works

• Piling works are subject to ground conditions which

may vary from design assumptions based on site

investigations

• Actual quantities cannot be determined during the

design stage

• Re-measurement of piling works are a fair system

to pay contractor based on actual works done on

site.

iii. Satisfy Current Project Nature

Nov 2015

PART 4

NEC3 Project Workflow

Nov 2015

Traditional (Non NEC) MTR Work Flow

- Contractor to raise RFI for queries

- MTR to reply RFI with required info

- Not an Engineer’s Instruction

Request for Information

(RFI)

Design Queries

Design Changes/ Variations

Drawing Issue Sheet

(DIS)

Major amendments to drgs

Minor amendments to drgs

Drawing Amendment

Sheet (DAmS)

Engineer’s

Instruction (EI)

- Major amendments to drgs

- EIs to cover DamS/ DIS

• Significant cost implication *

• Affect other interface contracts

MTR to seek prior approval

before issue EI/ DAmS

• Affect site safety

• Affect site progress & cause delay

• Small cost implication *

MTR to issue EI/

DAmS/ DIS directly

Form C Approval MTR to issue

EI/ DAmS

Form C Approval Form C Approved

Retrospectively

* Usually internal assessment without prior agreement with the Contractor

Design Meeting

- Discuss design issues

- Resolve Contractor’s queries

Scenario 1

Scenario 2

Nov 2015

Current NEC Work Flow System

Nov 2015

Potential Early Warning (PEW) System

MTR to Issue PEW when:

1) Potential Design Change affects Scope of Work &

Construction Method

Paul Y to Issue PEW when:

1) Discrepancies between Works Information,

Construction Drawing and/or Specifications

2) Outstanding Design Information

3) Design Change Technical Queries

Nov 2015


Design Technical Meeting Every Wednesday Morning

Nov 2015


Based on the Agreed Technical Solutions, Paul Y

will develop the Construction Methodologies:

1) Change in scope of work,

2) Revised Construction Method,

3) Programme effect,

Afterwards, Paul Y will issue an Early Warning (EAR).

Nov 2015

Early Warning (EAR) in Risk Reduction Meeting

Risk Reduction Meeting Every Tuesday (Based on EAR)

Paul Y will then assess the cost & time implications and present

them to MTR.

Nov 2015

MTRCL – issue PMI to reply the Early Warning to

seek time and cost quotation for Paul Y to reply

within 3 weeks.

Paul Y – concurrently prepares detailed cost & time

estimates to respond to PMI when received.

Deadline to reply to PMI is within 2 weeks.

Project Manager Instruction (PMI) and Compensation Event (CE)

Nov 2015

MTRCL – issue Compensation Event based on the

agreed time and cost quotation.

Paul Y – No further action needed. Item closed.

Project Manager Instruction (PMI) and Compensation Event (CE)

Nov 2015

Compensation Event (CE) In CE Meeting

Compensation Event Meeting

Weekly CE Meeting to discuss the CE items:

1) Paul Y to advise likely time & cost effects of CE items.

2) MTRCL and Paul Y to discuss & agree the time and cost effects of the CE items.

Nov 2015

PART 5

Implementation of NEC3 to

enhance Productivity

Nov 2015

Via Sharepoint

by Thur noon

Risk Reduction Meeting

(2 hours)

Design Meeting

(2 hours)

Internal Meeting

(1 hour)

Compensation Event Meeting

(1 hour)

Early Warning Register

PEW Summary

CE Register

• Works / CM Meetings to be held bi-weekly on Tuesdays before Risk Reduction Meetings

• Sketch/ DamS/ DIS Register is contained in PEW Summary

Mon Tue Wed Thur Fri

KPI Summary

• Update EAR Register

• Add any PEW / EAR items

By email

• Review EAR Register

• Review PEW Summary

• Add any PEW from DDC

Submit EAR via ePMS

• Review quotations

• Update CE Register

Risk Reduction

& Mitigation

Cost/ Time Assessment

Prepare DamS

Update EAR/ PEW

Register

Project Management

Update KPI Summary for

Weekly PM Report

Report Writing

NEC3 Work Flow – Regular Meeting Schedule

Nov 2015

Assessment of Compensation Events

During Design Meetings

• An ideal platform for MTRCL, Consultants and Paul Y to have open discussions on how changes can best be technically accommodated in the Works.

During Risk Reduction Meetings

• Aimed at expediting the construction and commercial approval process, Paul Y prepares PICTORIAL diagrams to illustrate the construction method and effects on working schedule.

During CE Meetings

• MTRCL & Paul Y commercial teams to discuss and agree on the cost effects of the CE items basing upon the agreed construction method and programme impacts.

Nov 2015

Statistical Comparison

KPI Phase 1 Phase 2 *

Request for Information (RFI) 717 83 (Discontinued 4 months after contact commencement because it has duplicated EAR functions)

Early Warnings (EAR) - 131

Drawing Amendment Sheet (DAmS) 65 40

Engineer’s Instruction (EI) (no agreed time and cost quotations, to be settled

later)

63 -

Project Manager’s Instruction (PMI) (seek Paul Y’s time and cost quotations within 3

weeks from day of issue and MTRCL to agree within

2 weeks upon receipt of quotations)

- 105

Compensation Event (CE) (to conclude PMI within 5 weeks of issue)

- 92

* Up to of 26 October 2015

Nov 2015

KPI Monitoring Summary Early Warning and Compensation Event Summary

Current status: 1) CE events quotation – 98% agreed. 2) Early Warning - 90% closed out. 3) MTRCL’s response to Paul Y submissions = Average 10 days.

Nov 2015

Project Management – More Benefits in NEC3 workflow when compare with

traditional workflow

Issues Traditional Workflow NEC3 Workflow

Submission of technical query to

the Engineer / PM

Request For Information (RFI) (No time

limit set for response)

Early Warning (EAR) (Target to respond

within 14 days under Contract 713)

Contents in the submission Usually concentrate on current

construction issues.

All current / future issues affecting

project time and cost.

Engineer / PM feedback 1) Response usually without contractor’s

input.

2) Limited resources, slow response.

3) Usually prioritize response to urgent

issues. Other un-resolved issues keep

piling up.

1) Integrated response achieved based

on coordination among the Engineer,

PM, Contractor and Consultant

2) Adequate resources are provided up

front.

3) Sort out all issues according to the

agreed action dates.

Effects on project 1) The purpose is to solve the

immediate construction issue without

affecting site progress.

2) Works changes are carried out

without any prior agreement reached

on time and cost implications.

1) Register all issues affecting the

project in a systematic manner.

2) No changes of works are carried

out without any prior agreement in

principle reached on time and cost

implications.

Nov 2015

PART 6

Typical Presentation Materials used in

Risk Reduction Meetings

Nov 2015

Additional Works Due to Design Change

Nov 2015

Additional Works Due to Design Change

A. EAR0068

• Contract drawings do

not provide RC detail

for the following E&M

fitting installations:

1. Spa Jet Fitting

2. Supply Inlet Fitting

3. Vacuum Fitting

4. Sampling Fitting

5. Level Sensor Fitting

Nov 2015

Location Plan For Additional Recess

Swimming Pool plan showing the original and additional RC recess locations

Nov 2015

Elevation of Multi-Purpose Pool

Multi-purpose pool - Pool basin

elevation showing the original and

additional RC recess locations

Nov 2015

Elevation of Multi-Purpose Pool

Additional Recesses

E3

E4

Multi-purpose pool - Pool basin

elevation showing the original and


Nov 2015

Elevation of Training Pool

Training Pool - Pool Basin

Elevation showing the original and


Nov 2015

Additional Recesses in Pool Slab & Wall

Summary

Pool Type Original

Recesses

Additional

Recesses

Revised Total

Recesses

Multi-Purpose Pool (Zone1) 18 19 37

Multi-Purpose Pool (Zone2) 14 15 29

Training Pool 16 24 40

Jacuzzi 0 24 24

Nov 2015

Typical Example: Pictorial Presentation – change in work sequence to

mitigate project risks 1) Pictorial Presentation Method to illustrate the methodology 2) Bar Chart Presentation Method to illustrate the time Justification

Finally, Come to a mutually agreed solution

Nov 2015

PART 7

NEC3 Benefits &

Challenges

Nov 2015

NEC3 Benefits

1. Potential project risks are identified through the Early Warning System.

2. Communication enhanced amongst project team members through frequent discussions on potential time and cost implications.

3. Thorough understanding of the project through team members’ direct participation in the preparation of presentation materials.

4. Potential risks are effectively mitigated through the Risk Reduction System.

5. Relevant details are captured contemporaneously through the Compensation Event System to expedite the agreement on time and cost effects in a timely manner.

Nov 2015

NEC3 Benefits (cont.)

6. Construction productivity is significantly improved as most risks have been mitigated.

7. Early agreement on CE items enables early conclusion of final account.

8. Project cash flow and cost control are improved through early agreement and payment on CE items.

9. Agreement on CE items are expedited as quotations are prepared concurrently with MTR’s preparation of PMI once the construction methodology on a CE item is agreed in Risk Reduction Meeting.

Nov 2015

NEC3 Challenges

1. MTRCL & Paul Y team members are required to attend extensive NEC3 trainings.

2. Great challenge for team members to adapt to NEC3 philosophy in the beginning.

3. Considerable amount of time is spent in coordination workshops which are not very productive initially.

4. Extra resources are required to prepare programmes & pictorial presentations on CE items.

Nov 2015

NEC3 Challenges (cont.)

5. A significant amount of technical documents are required to substantiate changes and the resultant effects (both time and cost).

6. Tight schedule specified for preparation of quotation and commercial justifications = within 3 weeks.

7. Prior to the building up of trust between MTRCL and Paul Y in the beginning of the Contract, open-minded discussions appear difficult. This was overcome once mutual trust is established within a short time .

Nov 2015

PART 8

NEC3 Project Experience Sharing

Nov 2015

Facilities / Resource

provided for 713 project Effectiveness

1 Joint Site Office All issue can be discussed and solved

immediately on site

2 Joint PM Office All technical, programme and contractual

issues can be discussed and resolved

immediately

3 Joint Whatsapp Group Creative communication for urgent issues

4 Additional Staff Resource Provision of additional resources to meet the

project need

Project Facilities and Resources to enhance Communication

Nov 2015

Joint Site Office

MTRCL’s office

Paul Y.’s

office

Solving Site Problems

Nov 2015

Design

Consultant

MTRCL

Engineer

Joint PM Office

Paul Y. Engineer

PM Office, 27/F

PM Office, 36/F

Paul Y. Management Staff

MTRCL

Management Staff

Nov 2015

Joint WhatsApp Groups for integrated communication

WhatsApp Groups Listed below:

1. MTR713 Safety Group

2. MTR713 RC Structure Group

3. MTR713 Steel structure Group

4. MTR713 ABWF Group

5. MTR713 Survey Group

Nov 2015

NEC3 Project

Lessons Learnt Summary

Nov 2015

Item Challenges Real Situation facing during

NEC3 system running Solution

1 Fixed time frame

for response

Time rush in different stages for

different groups of team members:

a) To prepare technical solution

b) To prepare methodology

presentation

c) To submit quotation

d) To access quotation and issue

CE item

1) Additional resources (Engineer,

QS, Programmer, Administrator)

during Project Operation.

2) Close coordination between

team members for early

preparation of documents at

each stages

2 Not fully familiar

with NEC3

workflow procedure

1) Workflow is complex to follow

2) To understand the NEC3

workflow requirements for

document preparation.

1) NEC3 training given to the

working team

2) Acquired NEC3 working

experience through sharing

sessions with project team

members as well as to learn

from other NEC3 projects

3 Lack of trust and

cooperation in

early stage of

project

1) Natural human thinking to

protect the interest of his/her

organization

1) Worked hard to change the mind

set of all the team members.

2) Early involvement and support

of management to build up trust

and cooperation.

NEC3 Project Lessons Learnt Summary

Nov 2015

Item Challenges Real Situation facing during

NEC3 system running Solution

4 Numbers of regular

meetings required 1) Meetings are time-

consuming.

1) Define the purpose of each

meeting for time efficiency

2) Preparation in advance for

easy understanding (such

as Time comparison

program, pictorial change in

working sequences, etc)

5 Creative

Communication 1) Communications are not

limited to only progress

meetings, e-mails, formal

memos and letters.

1) Joint site and the PM office

for immediate discussion.

2) WhatsApp for immediate

information sharing

NEC3 Project Lessons Learnt Summary

Nov 2015

PART 9

Mid-Term Achievements :

1. Time

2. Cost

3. Quality

4. Safety

5. Social Services

Nov 2015

Time Achievement

Early Assessment on Major Time impacts

Typical Case: Revised Pile Cap Level

Effect: Time Implication

Solution: Agreed time recovery measures by increasing resources to mitigate delay due to the revision in pile cap level.

Nov 2015

Nov 2015

Cost Achievement

Early Discussion on cost saving items

Typical Example: To revise lighting design to suit the revised Landscape layout

Effect: Cost Implication

Result: Optimum lighting design to meet government requirements for landscape area at the least cost option.

Nov 2015

Contract Landscape Lighting Layout

Original Contract Cost:

HK$0.4M

Nov 2015

First Change of Lighting By Landscape Architect (Costly Option)

Cost Estimation (Costly Option): Interim cost

of HK$2.76M based on government

requirements using floor mounted light on

the revised landscape design.

Nov 2015

Further Change of Lighting Layout (Cost Saving Option)

After presenting to Government the cost of HK$2.76M for using floor mounted

light, Government accepted an optimum lighting design of using ceiling

mounted light only which has greatly lowered the lighting cost.

Cost Estimation (Cost Saving Option): Final Cost of HK$0.3M

The cost reduction was achieved by the early warning system

which Paul Y raised the cost quotation to MTR for review. MTR,

Paul Y and Consultant worked together to find an optimum

lighting design solution with least cost which still meet

government requirement.

Nov 2015

Quality Achievement

Early Discussions on Quality Enhancement Issues

Typical Example: Additional Steelwork Protective cladding

Effect: To reduce potential risks to FRP Paint

Result: MTR agrees Paul Y to provide additional protective cladding (which is not specified in the Contract) to safe-guard against undesirable damages to the FRP paints.

Nov 2015

Past Experience at Phase 1

Nov 2015

A few years after the Phase 1 pool

become operational, FRP paint

system started to peel off.

FRP Protective Coating Peeled Off at Pool Deck Area in Phase 1:

FRP Peel Off at Pool Deck Area in Phase 1

FRP Peeled Off

Nov 2015

Early Warning (EAR-31)

To consider the past job experience

and lessons learnt

Nov 2015

EAR-031 raised by

Paul Y. in Jan 2015

Early Warning Register

Main Causes and

Consequences

Early Warning

Nov 2015

DAmS/030

Sectional View

Protective

Cladding Details

Nov 2015

Adopt NEC System in Site Safety

Safety Achievement

Nov 2015

Adopt NEC Working Spirt in Site Safety

Early Discussion

Joint Inspection

Evaluation

Continuous Improvement

• Conduct workshops to

discuss Method Statement &

latest Safety Requirements

• Weekly Safety Inspection

• Understand site constraints

• Ensure site works are carried

out as per method statement

• Regular monitoring

• Identify areas for improvement

• Discussion with MTR/ front

line staff/ sub-contractors

• Implement recommended

measures

Nov 2015

MTR Safety Awards in March 2015

MTR Safety Award in March 2015

Construction Industry Safety Award by Labour Department

List of Award

Silver Safety Award

Lowest Reportable

Accident Frequency Rate

Award

Best Site Condition Award

Supervisor Safety Award

Winner

Supervisor Safety Award

Runner-up

List of Award

Meritorious Prize in the

Safety Team

Bronze Prize in Civil

Engineering Sites – Sub-

contractors category

Best Site Condition Award

Nov 2015

22nd Considerate Contractors Site Award Scheme 1st Site Assessment on 8th July 2015

DEVB Assessment Form MTR Assessment Form

Development Bureau gave

FULL marks (7 nos. “BEST”)

MTR gave 7 nos. “BEST” &

3 nos. “Very Good”

Nov 2015

MTRC Quality , Safety & Environmental and

Stakeholder Engagement Awards in October 2015

Gold Safety Award

West Island Line

Gold Safety Award

Nov 2015

00.20.4

Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15

WIL 713 Accident Rate Summary (Sept 2014 – Oct 2015) Accident rate per 100,000 man-hours

Accident Rate per 100,000 man-hours

Zero Accident

Zero

Accident

Ceremony Stanley Lo Paul Y.

Director and

General Manager,

Group Legal Counsel

Man Wai Ming Paul Y.

Chief Operating

Officer

Stanley Wong Paul Y.

Chief Executive

Officer &

Executive Director

Stephen Hugh Hamill MTR

Project Manager(Civil) of

WIL Project

Nov 2015

Social Services Participation

Social Services Achievement

Nov 2015

Community Services in July 2015 – Elderly Community

Nov 2015

Community Services in September 2015 – Elderly Home Visit

Nov 2015

Thank You

paul y. construction company, limited

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