maintaining its own electrical and mechanical workshops, the introduc-tion of a sophisticated workshop costing system is necessary.

2.36. A post of Treasury Accountant was established in May 1967 with the object of implementing such a system. However considerable recruitment difficulties were encountered in finding a person possessing the particular qualifications and experience required for this post.

2.37. In fact two years and three months elapsed before the post was filled. The newly appointed officer arrived in the Colony in July 1969 and after serving for seven months gave notice of resignation. A considerable amount of groundwork has however been covered and a basic costing system is now operating in the Hong Kong Island work-shops. This system is producing data not previously available to the workshops, and is already proving to be of value for workshop manage-ment purposes.

TECHNICAL AUDIT

Chief Technical Examiner

M. D. HARDING, F.R.I.C.S., F.I.Q.S., A.I.Arb. P. FRENCH, A.R.I.C.S. (Acting)

2.38. The third year of this Unit saw continuation of surveillance of all contractual aspects of the Department's construction tenders and contracts.

2.39. Advice was given where requested in sub-departments on a wide range of contractual matters. On building work considerable time was spent by the Unit in investigating and reporting on the discrepancies between materials found on site on a re-entry contract and those included in previous payment valuation.

2.40. During the year a start was made on implementing the recently enlarged Unit mandate to include the technical audit of contracts con-trolled by private architects, private quantity surveyors and consulting engineers.

2.41. Out of its approved establishment of one Chief Technical Examiner and four Technical Examiners, the actual establishment on 31st March, 1970 was one and three respectively. During the year two Technical Examiners had been recruited from Britain, and one trans-ferred back to Architectural Office Quantity Surveying Division.

2.42. No substantial matters concerning malpractices by members of the Department were reported during 1969-70.

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