In this chapter, how QM is implemented in lodging undertakings of Hong Kong and Mainland, China, will be discussed and examined based on old researches and studies. Factors that impact quality direction in both parts will be emphasized and jobs in pattern will be explained. Differences of QM between them will be summarized as the concluding portion of this chapter.
5.2 Quality direction execution in Hong Kong lodging undertakings
Quality direction is non a new construct to the Hong Kong building industry. In 1960s, there was a great demand for public lodging to suit new immigrants. Much of the public lodging established at that clip, though in a big measure, had been at the disbursal of quality, ensuing in 26 lodging blocks for 70,000 people needed to be redeveloped in 1986 ( Kam & A ; Tang, 1997 ) . The cost in remedial work was tremendous and the Hong Kong Housing Authority ( HKHA ) wholly recognized the construct of QA- “ acquiring it right first clip, every clip ” . Hence, accent on quality shifted from the “ sensing of errors ” -so called QC to the “ bar of errors ” – so called QA.
In March 1990, the Hong Kong Government held a “ quality consciousness run ” and the HKHA took the enterprise by endeavoring for an betterment in the quality in the building of all public lodging plants. The HKHA, being the largest developer for residential edifices in Hong Kong, required all its building contractors to be ISO 9000 certified before 31 March 1993. Otherwise, the contractors would be removed from the list of tendering for HKHA ‘s undertakings ( Chan, Wong, et al. , 2006 ) . The HKHA farther introduced a public presentation appraisal hiting system ( PASS ) to supervise public lodging quality. In add-on, since 1996 the Hong Kong Government works Branch required all its technology, architectural associated advisers to be certified to ISO 9000 ( Tang, Ahemd, et al. , 2005 ) . In December 2000, a new edition of ISO 9000 was published as mentioned in Chapter 2. The Hong Kong Government required all building organisations in Hong Kong to obtain re-certification to this new edition by the center of December 20003 before they could subject stamps for public occupations. Until now, clients of the Hong Kong building industry have succeeded in acquiring the building contractors accredited to ISO 9000 criterions. QA has penetrated into the whole Hong Kong building industry ( Lau & A ; Tang, 2009 ) .
Although some benefits were experienced by contractors after the execution of the quality system, surveies have indicated that many jobs and troubles are still encountered by them ( Ahmed et al. , 1998 ) . It is non unusual that most surveies arrived at the same decision that: “ client-led thrust was the chief motive for enfranchisement ” . The chief benefits generated by enfranchisement contain clearer work processs, better certification and competitory advantages ( Tam, 1996 ; Tang et al. , 2005 ) . Another study conducted by Kumaraswamy and Dissanayaka ( 2000 ) examined both positive and negative results of ISO 9000 enfranchisement as perceived by contractors. Based on this study, the top two negative facets were “ more paperwork ” and “ more clip spent on direction ” ; while the top two positive facets were “ more systematic record maintaining ” and “ improved internal communicating ” . In the undermentioned pages, the specific elements that influence quality of Hong Kong public lodging undertakings will be discussed and jobs that exist in current PQM pattern will be examined and analysed.
5.2.2 Factors impacting Project quality in Hong Kong
Based on the reappraisal and comparing of old studies and research consequences of Hong Kong public edifice undertakings, there are chiefly 17 underlying factors that affect the undertaking quality. Among them, six factors were found to be highly important associated with the quality public presentation step ( PASS mark ) , which can ease making higher quality of undertakings and higher PASS mark for contractors. This decision is besides found by Low & A ; Tan, 1996 ; Abdel-Razek, 1998 ; Arditi & A ; Gunadydin, 1998 ; Chan & A ; Tam, 2000 ; and Chan el Al, 2006. These six factors are presented as followed:
Appointment of a competent and experienced undertaking director in running public lodging undertakings ;
Adopting proactive quality civilization ;
Enhanced fullness of farm outing review system ;
Increased use of skilled labor ;
Better competence of site labor ;
Increased client ‘s accent on quality, safety and environment.
From the empirical findings, undertaking director ‘s experience in running public lodging undertaking has the highest coefficient with undertaking quality and success ( Chan el al, 2006 ) . Project director ‘s cognition on covering with the PASS appraisal can lend to acquire higher PASS mark. Since 1990s, the HKHA has applied standardized design for building public lodging, where contractor undertaking directors can construct up the necessary experience and hence can lend to better building quality. Harmonizing to the research of Chan et Al ( 2003 ) , “ the more experient undertaking directors are, the lower proportion of rework there will be ” . This indicates that there is a positive relationship between the undertaking director ‘s experience and quality public presentation.
Change of bing behavior is a major obstruction to the execution of a quality system on site and to appeal an organization/project toward quality direction ( Abdul-Rahman, 1996 ) . In add-on, most employees in Hong Kong tend to see QA procedure as another “ extra modus operandi ” in which a batch of unneeded paper plants have to be done ( Low & A ; Goh, 1994 ) . Consequently, altering the perceptual experience of QA and cultivating a proactive civilization for quality betterment are an indispensable measure to QM ( Chan et al. , 2006 ) . Furthermore, the direction committedness was advocated by many research workers and practicians as an of import factor impacting quality ( Low & A ; Goh, 1994 ; Chan & A ; Tam, 2000 ) . These research workers concluded that motive by the chief contractor ‘s senior direction is indispensable to advance quality and their findings provided powerful support to the importance of set uping a proactive quality civilization among the organization/project.
In Hong Kong building industry, 80 per centums of contractors ‘ plants are sub-contracted, so labour sub-contracting plays a major function in the work organisation. Although this system produces many benefits, including specialisation and professionalism, it besides has serious drawbacks in the coordination of work and accomplishment of quality criterions ( Fan, 1994 ) . The inordinate beds of farm outing tend to cut down the quality of craft because of the lower net income border as farm outing pyramids down ( Loh & A ; Ofori, 2000 ) . With mention to CIRC ( 2001 ) , the multi-layered sub-contracting pattern restraints the chief contractors from exerting supervising of work and the combination of chief contractors and assorted types of subcontractors cause a high grade of atomization, which exacerbates the job of communicating, cooperation and direction. Notwithstanding, the chief contractors have the duty to the employers for any breach of the subcontractors. Under these conditions, it is clearly in the involvement of the chief contractors to set up a comprehensive review system with specific unambiguous instructions every bit good as to supervise and command checkpoints in order to guarantee quality of craft and stuffs ( Chan et al, 2006 ) . At present, as for cut downing the load of chief contractors, CIRC ( 2001 ) has amended statute law to necessitate subcontractors responsible for site issues and has established a voluntary enrollment strategy for qualified subcontractors.
In Hong Kong merely few large-scale contractors straight employ their ain skilled labor and as mentioned above largely of the building work is sub-contracted. The impermanent nature of the building work force and frequent switch of the work for building workers from one site to another site, do it more hard to develop workers, peculiarly the trade labor ( Arditi & A ; Gunaydin, 1998 ) . In this state of affairs, the chief contractors should carry on preparation activities for their ain employees and increase the use of direct skilled labor.
CIRC ( 2001 ) addresses that human resource is the most valuable plus in the building undertakings so the building workers ‘ accomplishments are important to the undertaking quality. The proper preparation and widening experience for site labors are necessary. Arditi & A ; Gunaydin ( 1998 ) point out that instilling basic quality construct in craftsmen and site directors can better undertaking quality. In this state of affairs, the HKHA and Hong Kong Construction Industry Training Authority have set up extended programmes in preparation, proving and attesting skilled workers. At the same clip, a codification of pattern has set up necessitating all workers to take accomplishments tests on a regular basis.
Clients have a major influence on the result of undertaking quality ( Abdul-Rahman, 1996 ) . Cost, clip and quality are ever a trigon relationship for undertakings. Each is restricted by the other two. For the most of undertakings in Hong Kong, costs and clip parametric quantities are the chief pre-occupying factors for measuring success ( Chan et al. , 2006 ) . Undertaking quality is frequently taken for granted and unequal accent has been given to this parametric quantity ( Rad & A ; Kjosrowshahi, 1998 ) . The consequence found by Chan and Tam ( 2000 ) indicates that the grade of client ‘s accent on quality has an impact on undertaking success. Chan et Al. ( 2003 ) agree that supervising work by the client is a really of import undertaking to guarantee quality.
In position of these six important factors, a prognostic theoretical account for quality public presentation appraisal ( PASS ) on public lodging undertakings has been established by HKHA, inside informations in Appendix IV.
5.3 QM execution in existent estate undertakings in Mainland, China
Since the reforming and unfastened door policy started in the terminal of 1970s, China has experienced a enormous alteration from a stiff plan-oriented economic system society to a market-oriented economic system society. It is worthwhile to observe that one feature of this reform is the dual-track passage, in which province programs remained while private market emerged at the same clip. During this transitional period, the economic system of China developed at an astonishing rate, which was regarded as an of import economic force in the universe ( Liu et al. , 2004 ) . Construction industry of class contributed to the accelerated development and has achieved extraordinary growing and dramatic development in the past 30 old ages.
However, there were no independent professional PM companies in building industry until 1988. At that twelvemonth, undertaking supervising system was introduced to the building field and building supervising ( CS ) as an independent professional undertaking direction companies were involved to take the responsibility of PM on behalf of the client. In order to get by with the alterations and convey it in line with international pattern, a series of Torahs and ordinances were enacted by the Chinese Government in the early 1990s to better the building industry in China. These included the Government Standard Form of Contract in 1991 ; the Client Responsibility Ordinance in 1992 ; the Client Construction Supervision Ordinance in 1995 ; and the Tendering and Bidding Administration Ordinance in 1995. The current technology quality direction theoretical account in building industry is presented below ( Figure 5.1 ) .
The proprietor, being the patron, is responsible for suggesting the overall quality criterions. Survey and design units are responsible for the quality design of the undertaking. Construction supervising unit are on behalf of the proprietor to carry on a comprehensive quality direction, including supervising the work of the contractors or subcontractors, inspecting and proving stuffs and equipments. Contractors through specific undertakings implement the undertaking quality program and the undertaking providers provide the stuffs and equipment in conformity with defined demands. The review unit is a recognized organic structure which is authorized by the authorities to inspect and prove stuffs such as concrete, steel, etc. The authorities technology quality supervising ( EQS ) section represents the authorities to modulate and oversight the undertaking quality direction. A series of activities launched by this authorities section is to guarantee the building market a healthy and ordered development, to protect national Torahs related to building, safeguard national and public involvements and better the safety and wellness environment for the undertaking. Overall, under this theoretical account, each unit has to organize and collaborate with each other in order to accomplish the quality demands and run into the proprietor outlooks.
At present, although the gradual execution of compulsory supervising system had bit by bit improved building lodging undertaking quality, there are legion jobs bing in pattern. Therefore, factors that influence quality direction and jobs that occur in pattern will be discussed with mention to the consequences and analysis of old empirical surveies.
Yung and Yip ( 2010 ) province that the handiness of resources, including machinery, labor and capital, is taken for granted in developed economic systems. Management issues are normally found in many surveies to be the most of import factors that influence building quality. However, these decisions are non applicable to developing economic systems, like mainland, China. Harmonizing to the surveies of old research workers, there are several cardinal factors that affect undertaking quality.
Belassi and Tukel ( 1996 ) agree that handiness of resources ( human, fiscal, natural stuffs and installations ) is of import to the undertaking quality. Ling et Al. ( 2004 ) point out that the “ adequateness ” of a contractor ‘s works of equipment was one of the most influential factors impacting the quality of edifice elements in design-build undertakings. In recent state of affairs of Chinese building undertakings, both handiness of stuffs and the mobility of labor are the affairs serious plenty to impact quality. The empirical statistics produced by Yung & A ; Yip, reveals that the power of machinery per laborer is a better measuring of the impact of equipment on quality than the book value of the machinery per laborer. In add-on, the usage of more workss or machinery per aZ? of floor infinite will increase building quality, while the usage of more laborer per aZ? will diminish building quality.
Peoples populating in China 30 old ages ago were satisfied if they could maintain warm and fulfill their hungriness. The primary map of residential belongingss was to protect people from the conditions. At that clip most people were hapless with low buying power, so the demand for high quality lodging was rare. However, with the accelerated development of China ‘s economic system, more and more people could afford high quality lodging and so the quality public presentation of undertakings were bit by bit be emphasized. As a consequence, the authorization had to increase the choice criterion for lodging appraisal and the high quality of undertaking became a scheme for competitory advantage. Consequently, the high demand for better quality lodging determines the quality in building undertakings.
The acceptance of compulsory building oversing agreements has improved building quality in China. Clients are the concluding users of the lodging and bear the quality of lodging, but they have small control and information on the quality their edifices than developers or contractors. Hence, the compulsory institutional agreements can break better the bottleneck quality than merely go forthing the market to monetary value the derived functions in quality in the instance of positive dealing costs ( Yung & A ; Lai, 2008 ; Yung & A ; Yip, 2010 ) . This statement is consistent with the corollary of the Coase Theorem ( Coase, 1937 ; Lai et al. , 2008 ) .
As mentioned above, one feature of transitional economic system is the outgrowth of both state-owned Enterprises ( SOEs ) and non-SOEs. The SOEs evidently received resources and capital much more easy than non-SOEs, because if non all of them, are include in the province programs. Although it was clear that the extent of province planning for building stuffs bit by bit decreased after 1993, it is really improbable that makers succeeded in happening new purchasers ( Yung & A ; Lai, 2009 ) . In other words, it is easier for SOE contractor to obtain resources and financess than non-SOEs. Research workers have found that the building quality of SOE contractors ‘ work tends to be better than that of non-SOEs ( Chen, 1998 ) , though the general building undertaking quality is hapless in China ( Chan et al. , 1999 ; Chen, 1998 ; Lam & A ; Cheng, 2004 ) . Furthermore, the consequence of survey performed by Yung & A ; Yip ( 2010 ) indicates that higher labor productiveness tends to hold a positive correlativity with better building undertaking quality.
5.4 Findingss and Discussion
At present, the construct of QA has penetrated into the whole Hong Kong building industry, though, many jobs and obstructions occur in the pattern of QM in a existent state of affairs of undertaking. The typical jobs will be reviewed and discussed below based on the empirical surveies.
Harmonizing to Au & A ; Yu ( 1999 ) , when choosing contractors less attending was given to the stamps ‘ public presentation in supplying specified quality certification. Fewer tenderers ‘ entry comprised all needed quality paperss as stated. The proportion for the submitted paperss that are equal for clients to measure the tenderer ‘s quality system is comparatively low. Furthermore, the “ quality ranking ” has small consequence on the determination of concluding contract award. It was by and large agreed that “ cost ranking ” and “ proficient ranking ” are still the direction ‘s lone consideration in the current pattern.
It is compulsory demand that contractors have to subject quality programs and records on a regular basis after subscribing the contract. Harmonizing to the findings ( Au & A ; Yu, 1999 ) , the quality manuals and programs submitted by most contractors may non encompass all activities of themselves and their sub-contractors of any grade. Monthly advancement studies and assessments on the public presentation of the quality largely may non be submitted as required. Controlled quality paperss may non keep throughout the continuance of contract.
From the study, there is a consentaneous understanding that the current opinion of presenting interim payments is colored towards the building advancement of the contract, instead than the quality of completed work. In other words, the current ordinance of money payment, being regarded as the most effectual inducement, is unable to actuate the contractors to accomplish the needed degree of public presentation and concentrate on QA issues.
It is worthwhile to detect that the quality forces assigned by the contractors are non really competent and skilled. The qualified and experient quality representative are nor appointed for guaranting QMS demands, such as the confirmation of design and the execution and care of audit activities. This so has a close relation to the contractor ‘s committedness in the confidence of their ain system.
Another issue in pattern is that it is hard or even more impossible to supervise sub-contractors ‘ building work on site. Although the contractual demands have commissariats for commanding contractors in the choice of sub-contractors for the work, there was a deficiency of engagement in the following grade organize the sub-contractor to the sub-sub-contractors. In add-on, there are no proper regulations and ordinances in the local building industry to command the multi-tiers of sub-contracting.
The current technology quality direction theoretical account of China plants on the monitoring of the building technology quality to certain grade, but there are still some jobs in pattern.
The current direction theoretical account in China focal points on supervising afterwards instead than pre-control, hence, it can non forestall the happening of some technology quality hazard. Furthermore, the technology supervisor lacks quality confidence consciousness and nonconformities bar has non became the nucleus of supervising. Government straight manage the technology quality by administrative intercession instead than economic methods. Due to big sum of undertakings and limited supervising force, most of the EQS go a mere formality ; it may even ensue in rent-seeking behavior and corruptness.
Many of the clients can non clearly define their demands of undertaking quality and standards against which the work completed will be measured. Some clients particularly for private 1s, who normally have one-off undertakings, are unable to bear specific quality direction accomplishments and quality consciousness ( Dallakoti, 1997 ) . When choosing contractors, the client ‘s accent and attitude are more cost-oriented or schedule- oriented, instead than on quality. The capacity of hazard handling is normally ignored but an attack of “ all-risk-to-contractor ” is adopted in the contract.
Client ‘s misinterpretation of the function and duty of CS companies is a cardinal job that obstacles the sweetening of undertaking quality. Liu et Al. reveal ( 2004 ) that clients do non clearly understand the place and duty of CS companies in building quality direction. Clients merely focus on CS applied scientist ‘s proficient accomplishments instead than their direction accomplishments and clients frequently treat them as “ quality accountants ” or “ site spectators ” . The cause of this false perceptual experience and misinterpretation illuminated by Chan ( 1999 ) may deduce from the traditional building direction system. Another issue is that the clip of naming CS companies is excessively late to let them to exercise their map on the success of a undertaking. Clients in China normally appoint CS companies after origin and design phases and before the beginning of building phase. In other words, they prevent CS companies from fall ining the early phases of a undertaking and hence restrict CS companies ‘ part to the undertaking quality direction.
Cesium companies largely focus on the review of work against with set demands, which does non affect the construct of bar. Almost of the undertaking CS companies are merely “ building supervising ” which means they are non carried out related supervising on origin phases. The consequence of this phenomenon is the defects in the study and design phases beyond pre-control and so affects the quality of subsequent undertaking phases.
The deficiency of competent and experienced CS practicians is a critical obstruction for undertaking quality betterment. Edum-Fotwe and McCaffer presents that a undertaking director in building by and large has to roll up at least 10 old ages ‘ working experience to obtain that place. However, given the comparatively short history of CS in China, it tends to be an inevitable job with local companies. Furthermore, the low wage of CS practicians in the market can non pull the competent forces from other relevant professions, although it is an appropriate attack to relieve the serious deficit of experient practicians. A silent issue is that a little proportion of employees in some CS companies assigned to them by their state-owned companies are unqualified and incapable of finishing CS undertakings.
Apart from the deficit of experient CS practicians, the limited cognition and accomplishments borne by CS practicians is considered an of import restraint factor. Based on the study of Liu et al. , the bulk of practicians in China, although are competent in proficient facets, deficiency equal cognition and accomplishments in direction, finance and communications. It has been argued by a figure of research workers that practicians in undertaking direction demand to larn non-engineering cognition and accomplishments in order to complement their traditional engineering-oriented cognition. The uninterrupted preparation is besides needed to develop competence of CS practicians for successful undertaking direction in the long-run.
Most of the Chinese contractors are “ trade ” contractors, which mean that the contractors obtain high quality instruction and have sufficient proficient cognition in trade. However, most people at work degree are unskilled and most of them are non stable building workers and non see building as their calling. As a consequence, the quality of work is frequently non guaranteed. Furthermore, building directors of the contractors are frequently non given adequate authorization by top direction to do determinations and have no duty for net income and loss of undertakings. Consequently they frequently lack motive to transport out the work in the most cost-efficient manner.
In add-on, unlike contractors in Hong Kong, contractors in China usually do non hold good concerted relationships with each other. They seldom take into history of the demands and outlook of other trades. Therefore, this may take to stillborn or ill coordinated sequence of work. Furthermore, the testing and commissioning mechanisms for a undertaking is non operated efficaciously, as the contractors have established good relationships with the authorities building sections. Hence, the blessing of building completion can be obtained easy organize the authorities building sections, without the undertaking being decently completed and all minor defects rectified or even noticed.
Due to the history and civilization, Hong Kong has developed a mature market-economy and established more complete system of Torahs and ordinances, compared to Mainland China. Of class, this distinction creates the spread in building quality direction between these both parts. Harmonizing to above treatment and analysis of QM, the distinctions between Hong Kong and Mainland are summarized in the below.
From the comparing, it can be found that the cardinal factors that affect choice direction in Hong Kong are more related to direction issues, while in Mainland the handiness of resources and capital is the chief factor which is taken for granted in Hong Kong. In add-on, although there are important differences of jobs occurred in Hong Kong and Mainland, the deficit of competent and experienced undertaking directors and staffs is the common obstruction for quality direction met by both topographic points. Therefore, the demand for uninterrupted preparation and instruction on QM are pressing and indispensable.