TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 126

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projects in the immediate vicinity could have altered the water table and thereby contributed to the water leakage problems later encountered at the stadium. With regard to the use of the waterproofing material, he explained that this was an attempt to solve the problem by the least expensive means and was a calculated risk that with hindsigh poor choice. With regard to the vetting of designs by consultants, the Director expressed the view that if touch control or vetting was imposed upon consultants, there was the danger of shifting the design and supervision responsibility from the consultants to the department. This not only put a strain on in-house staff resources but also defeated the primary objective of engaging consultants and reduced the consultants' accountability and liability for negligence. The Director further informed me that the current departmental practice was to assign professional officers to liaise with consultants to oversee the consultants' work, including looking at the scheme designs and cost implications in order to ensure value for money, consistency and adherence to current standards and policies as well as highlighting likely construction problems or special requirements at the preliminary design stage. He opined that any change in the present policy would require substantial additional resources which would be hard to justify in view of the great majority of consultant projects which were satisfactory in all respects.

145. The Director has agreed that all procedures for the management of consultants and the approval and use of building materials will be reviewed and improved where necessary and that in this and future cases legal advice will be sought in respect of contractual issues involving significant financial implications.

146. Head 703 – Buildings. Subhead 3012RE. Hung Hom indoor stadium – superstructure. In January 1975 the Finance Committee of the Legislative Council approved the upgrading of the project for the construction of the Hong Kong Coliseum (formerly known as the Hung Hom indoor stadium) to Category A of the Public Works Programme at an estimated cost of $69 million. Under the Memorandum of Administrative Arrangements made with the Urban Council in 1973 the Government was responsible for the planning, financing and construction of the Coliseum. The project was originally scheduled to be completed in October 1979 but was not completed until March 1983, 41 months later, at a final cost of $163 million. Included in this sum were claims submitted by the superstructure, roof, air-conditioning and electrical contractors which were settled at $18 million.

147. An audit review to ascertain the reasons for the delays in the completion of the Coliseum, which gave rise to the contractual claims, revealed that the delay of 41 months could be broken down into:

-a delay of eleven months in the commencement of the superstructure contract resulting from a late revision of the

schedule of accommodation;

-an extension of three months in the contract period for the superstructure contract at the time the contract was

awarded; and

an extension of 27 months in the superstructure contract period due to unforeseen difficulties in construction, additional works and the effects of inclement weather.

148. The Coliseum was built in the form of an inverted pyramid on the podium of the Hung Hom Railway Terminus and, because of the special design, the roof was constructed before the main works and was to be lowered and fitted to the main structure when built. The roof contract commenced in October 1976 and the superstructure works were scheduled to commence under a separate contract in April 1977. Following a tour of stadia in the United States of America in late 1976 by staff of the Urban Services and Architectural Services departments, the Director of Urban Services proposed a revision to the schedule of accommodation to ensure that the Coliseum was of international standard. The revision, involving the upgrading of the accommodation, facilities and equipment, was approved by the Finance Committee of the Legislative Council in July 1977, and the project estimate was increased from $69 to $88 million. The Finance Committee were informed that the revised estimate was based on current information which was unlikely to require upward revision. However no mention was made of the delaying effects and possible financial consequences of the late changes. The letting of the superstructure contract was consequently delayed until March 1978 as a large number of architectural drawings had to be revised.

149. During the construction period, delays of 27 months occurred which were largely attributable to difficulties encountered during construction and to additional works ordered. When the project was initially considered in 1972 as part of the Kowloon-Canton Railway - Hung Hom development project, the Finance Committee were informed that the structural form of the inverted pyramid design was simple and relatively economical to construct. However, in 1980 the Director of Architectural Services stated that there were constructional difficulties which were either inherent in the nature of the structure or not fully and accurately envisaged at the time of tender, resulting in approximately 42% more reinforcement than allowed for in the bill of quantities. The consultants employed by the superstructure contractor to identify the causes of the delays commented that the unusual architectural concept had resulted in a structure which was extremely complex, expensive and difficult to construct. These delays caused the works to be extended to further rainy seasons not envisaged at the commencement of the contract, which again caused delays.

150. In 1981, despite objections from the Director of Architectural Services, the Urban Council proposed an extension to the scope of the project by the provision of a permanent ice skating rink which would maximize versatility in the use of the stadium and facilitate the staging of major figure-skating spectacles as well as recreational skating by members of the public. The Urban Council agreed to meet the entire capital cost of the rink estimated at $7 million and to accept a delay of about one month to the completion of the whole project. The change in scope

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