tracts.'
But, just because there are enough firms submitting tenders, it does not necessarily follow that those firms and companies submitting tenders are those best able to com- plete the job.
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In the case of Shatin Town Park, it was clear to many involved in the project that the main contractor, Shui Tai Ltd, was incapable of completing the work for which it had been hired by the Government as it lacked the expertise and know- how, having never worked on a project of such a nature.
The same contractor was simultaneously working on the construction of the first phase of Tuenmun Cultural Com- plex.
Ultimately, both projects suffered delays and budget in- creases when Shui Tai went into liquidation and was unable to complete either project.
Since 1983, 17 Government-approved contractors have defaulted on works, 13 of them because they went into liquidation.
The problem which could arise during the current prop- erty boom is whether or not the Government would be able to re-award any major contract to a suitable company should the original contractor find itself in a position where it was unable to complete the works.
A number of sources within the construction industry have suggested that, of the companies on the Government- approved Lists, there were many who have not worked 'for years and years'.
According to the Government's criteria, a contractor may be removed from the lists of approved contractors if it fails to submit a valid, competitive tender for a period of 3 years, though removal is not automatic.
The Private Sector
Mr John Loo, President of the Hongkong Building Con- tractors' Association, told TARGET: 'I have never received any complaint that we are short of contractors in Hongkong. Personally, I think we have too many foreign companies in the business."
Though many local contractors would probably agree with Mr Loo, TARGET has been informed by sources close to the Government that concern has been expressed as to whether or not there will be contractors of sufficient calibre to compete for the tenders involved in the construction of Hongkong's third university.
The Royal Hongkong Jockey Club is responsible for the construction of the $HK1.5 billion Hongkong University of
Science and Technology and is working in close consultation with the Government, which will be ultimately responsible for the internal fittings of the University when the building works have been completed.
According to Mr William J. Greig, Project Controller at The Jockey Club, consultation is still in progress to establish exactly how many tenders will be necessary to complete the university.
It has been suggested by normally reliable sources that the negotiations are being prolonged by concerns that those companies best able to compete for the work will already have their hands full when the tender procedure is initiated. Mr Greig said that he was confident that there would be no problems in awarding the contracts.
The third university is expected to be constructed in 3 phases, though Government approval has, as yet, only been granted for the first 2 phases.
Phase One, which will represent approximately 20 per- cent of the total project, is hoped to be completed by early 1991 with construction commencing by May 1989.
According to Mr Greig, the companies which will be awarded the various tenders will not necessarily have to be Government-approved contractors though they will have to demonstrate a good track record for similar projects, as well as being considered capable, financially and technically, of completing the works within the period allotted.
The Effects of the Labour Shortage
That the construction industry is being adversely affected by the shortage of labour was unanimously confirmed by ev- eryone to whom TARGET spoke on the topic.
Despite the availability of work for companies, their ability to compete for more projects is restricted by the lack of workers.
The industry has tried to minimise the problem by intro- ducing technological methods which would reduce reliance on manual labour.
In an attempt to attract people into the industry, as well as to maintain the current number of employees, the industry has been forced to raise wage levels.
However, wage increases last year, which raised the average daily wage of a construction worker by almost 26 percent, have apparently not proved to be a sufficient incen- tive as, since June 1987, there has been a slight reduction in the construction workforce.
Many companies seem to be using an increasing number of illegal immigrants on sites to increase manpower and
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