XN000022-1991-03-13 — Page 19

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WEDNESDAY, MARCH 13, 1991

RISE IN PROJECT COSTS NOTHING TO DO WITH DUTY DERELICTION

IN

THERE IS NO INDICATION IN ANY OF THE CASES THAT AN INCREASE THE COSTS OF PUBLIC WORKS PROJECTS COMPLETED OVER THE PAST THRES YEARS SUGGESTS ANY DERELICTION OF DUTY BY GOVERNMENT OFFICIALS, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SAID

REPLYING TO A QUESTION BY THE HON POON CHI-FAI, SIR PIERS AS FOR CONSULTANCY STUDIES, WITH THE EXCEPTION OF ONE CASE WHICH WAS AT PRESENT UNDER ACTIVE INVESTIGATION, TO HIS KNOWLEDGE THERE HAD BEEN NO CASES IN RECENT YEARS OF INCOMPETENCE BY CONSULTANTS LEADING TO MAJOR ERRORS IN PROJECT ESTIMATES.

HE NOTED THAT FROM 1988 ΤΟ 1990, ABOUT PROJECTS APPROVED REQUIRED AN UPWARD REVISION APPROVED PROJECT ESTIMATES BY THE FINANCE COMMITTEE.

ONE-THIRD OF THE OF THE ORIGINAL

DURING PAST THREE YEARS, OUT OF A TOTAL OF 847 CASES, 282 CASES HAD THEIR TOTAL PROJECT COSTS REVISED WITH AN INCREASE IN PROJECT ESTIMATES AMOUNTING TO ABOUT $10 BILLION.

"IN MOST CASES, THE INCREASE IN PROJECT ESTIMATES WAS TO CATER FOR PRICE FLUCTUATIONS SINCE THE ORIGINAL APPROVED PROJECT ESTIMATES WERE BASED ON RATES PREVAILING WHEN THE ORIGINAL ESTMATES WERE DRAWN UP, WITHOUT ANY ALLOWANCE FOR PRICE INCREASES, SIR PIERS EXPLAINED, NOTING THAT THIS HAD BEEN THE NORMAL PRACTICE FOR MANY YEARS.

"

"FOR SOME PROJECTS, THE INCREASE IN APPROVED ESTIMATES WAS NECESSITATED BY CHANGES IN THE ORIGINAL SCOPE OF PROJECTS OR BY UNFORESEEN TECHNICAL PROBLEMS SUCH AS DIFFICULT GROUND CONDITIONS, HE ADDED).

甲申

SIR PIERS SAID A WORKING GROUP HAD BEEN SET UP IN THE WORKS BRANCH TO REVIEW DEPARTMENTAL PRACTICES WITH A VIEW TO ENHANCING THE QUALITY OF PROJECT ESTIMATES AND THE GROUP'S REPORT WAS EXPECTED TO

· BE READY NEXT MONTH.

"IN THE MEANTIME, WORKS DEPARTMENTS HAVE BEEN SEEKING TO IMPROVE THE ACCURACY OF THEIR PROJECT ESTIMATES, HE SAID.

THE DEPARTMENTS WERE SETTING UP PLANNING, ESTIMATING AND COST CONTROL GROUPS AND INSTITUTING COMPUTER BASED MEASURING AND COST DATA BASED SYSTEMS, HE ADDED.

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