MEANS OF REDUCING COSTS
EDITOR'S NOTE-In the March-April issue of the "Hong Kong Builder" we quoted from the Building Costs Committee's report on the reasons for the high cost of building construction in Hong Kong. In this issue we reproduce that section of their report which deals with suggestions which might lead to the reduction of such costs.
To those who are in any way interested in construction work in Hong Kong, we recommend a careful perusal of the following pages. We particularly call their attention to such points the training of labour in the various trades, the use of local building materials as far as possible, the recommendo- tion that Government allow exchange for the import of essen- tial building materials, and, above all, certain recommendations they make to Government, the adoption of which would result in considerable reduction in cost of land.
High costs of building are related to the cost of living, freight, rent and land. It is difficult therefore to suggest clear cut methods of reducing building costs.
A. LABOUR
This Committee can foresee no immediate likelihood of reduced wages and the only means of reducing the cost of building lies in the improvement of the skill of labour and increased output.
(1)
Reduction in wages will be effected when
(a) world wide supply and distribution problems of food are settled. There is no visible means by which we in Hong Kong may aid the solution of these problems,
(b) sufficient accommodation at economic rents is available. This is dependent on the availability of finance, building supplies, labour and land, all of which are dealt with later in this chapter.
(c) more skilled labour is available than can be absorbed into the building trades. The only means of increasing available skilled labour is a long term one whereby young unskilled labour is trained at trade schools. We must also hope that the present influx of population into the Colony will contain a good proportion of skilled tradesmen.
(d) conditions in China become sufficiently stable to encourage non productive members of workers families to remain there.
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(ii)
(iii)
B.
Increased output per man-day can only be achieved by increasing working hours, the fostering of competition amongst the workers and by better balancing of skilled and unskilled labour.
(a) Present day trend, which is encouraged by trades unions, is towards even shorter working hours and it is doubtful, except in the event of unforeseen economic conditions, if the pre-war working day will ever return.
(b) To induce a competitive spirit among workers and as a means of increasing output, Government and building owners should encourage contractors, on whom the choice will lie, to introduce a form of "payments by results" or bonus system which has been found successful in the United Kingdom during and since the war. Under such a system the worker is given incentive to increase his output by being paid a bonus commensurate with his output, in addition to his basic wage, We realize that with such schemes closer supervision may be required to ensure that scamped work does not result.
A better standard of workmanship may be attained and this committee recommends, as part of a long term policy to improve the skill of labour, that the efforts of industry and labour be co-ordinated in apprentice training by setting up trade schools and encouraging the employment of apprentices by approved and reputable firms. In the United Kingdom this is being achieved by the "trainee" system whereby ex service- men and others receive short term courses in various trades as distinct from the usual very long term apprentice training.
MATERIALS.
While little can be done in Hong Kong to relieve shortages of imported materials, certain steps may be taken to effect economies in the use of such materials.
(1)
(ii)
Improved supplies of building materials cannot be achieved other than by improved world wide situation. (a) Every effort should be made by all concerned to examine alternative materials of construction or processing of new material. Conversion of coal burning to oil burning for example, may show a considerable saving in cost and should result in lower cost of locally produced supplies of cement, bricks tiles and electrical supply.
(b) All possible economy should be made in the use of the materials which are available. Hong Kong has not derived the benefit that has resulted in the United Kingdom, U.S.A. and Europe from emer- gency and austerity standards. For example, emer- gency specifications were issued with the object of reducing the quantity of steel used during the war. Generally these have been found to be satisfactory and will, it is expected, be maintained or at the most only slightly revised. Advantage should be taken of all such specifications which should be made permissable under the revised building regula- tions.
Control of prices of materials has been considered but we are of the opinion that little could be achieved by such action.
(iii) Higher costs of material at source can only be offset by the more economical use of materials suggested above, and by the possible use of alternatives, an aspect of which is dealt with under Testing given below.
(iv) Exchange Control.. In view of the high priority of housing we consider that Government should give most sympathetic consideration to applications for exchange to purchase building materials in preference to less essential commodities.
(v)
Locally produced materials are comparatively few but include major items of building such as cement, bricks, tiles, joinery, stone and sand.
(a) The shortage of sand may be overcome by Govern- ment opening selected beaches where sand can be dug and graded by private enterprise under permit and adequately controlled.
(b) The shortage of stone may be eased by permitting private enterprise to quarry, for example, on the north side of Morrison Hill and at Tsat Tze Mui, two of the most easily accessible sites on the Island. This would have the added advantage of expediting the clearing of these areas to allow of development. The issue of permits to contractors for the quarry- ing of stone should be expedited.
(c) The use of mechanical plant in the crushing of stone and the dredging, grading and washing of sand will greatly reduce costs and improve quality. (d) As an immediate means of reducing the cost of joinery, it would be of advantage if timber were imported generally in scantlings instead of logs. In addition to the saving of freight costs, it would
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