A cost-saving task force set up by the Development Bureau has cut about HKD13 billion from the bill for public works projects in just over a year, saving the government 7 to 8 percent, as reported by The South China Morning Post.
Set up in June 2016, the Project Cost Management Office (PCMO) has reviewed cost estimates for more than 60 projects worth HKD170 billion in total, according to Development Secretary Michael Wong Wai-lun.
“The challenge of high construction costs has beset Hong Kong for many years. The government is determined to strengthen the cost management of public works projects,” Wong said.
Cost overruns and delays have plagued some of the city’s major infrastructure works, including the Hong Kong-Zhuhai-Macau bridge and the high-speed rail link to Guangzhou.
The PCMO’s task was to try to prevent cost overruns in public works projects, and it has since looked at the construction of government offices, staff quarters, hospitals, schools, parks, roadworks, waterworks and drainage works. Its cost management measures include leading and coordinating the bureaus and works departments. The unit will review 300 public projects being planned or designated in the next three years.
Capital works expenditure for the development of land, transport network, hospitals, schools and other large-scale infrastructure projects in recent years exceeded HKD70 billion annually and is expected to remain at that level for the next few years. — Construction+ Online
