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Following is the speech by Secretary for Works, Mr Lee Shing-see, at the opening ceremony of the Future Outlook of Construction IT Conference today (June 28):-
Sir Gordon Wu, The Honourable Mr. P. C. Lau, Mr Lai Ming, Professor J. M. Ko, representatives of the organizers, ladies and gentlemen.
Thank you very much for giving me the honour of delivering the opening address for this treasured occasion. Today's theme is called "Future Outlook of Construction IT". I recall a social philosopher once said "The only way to predict the future is to have the power to shape the future." I would like to share with you our road map for shaping the future use of IT in the delivery of public works projects.
Public works projects constitute a substantial portion of the construction industry. The portfolio consists of a wide range of infrastructures, including buildings, drainage, land formation, slope improvement, highways, and waterworks, etc. In the 2000/01 fiscal year, the total spending on public works is about HK $ 26 billion.
We have been leveraging on IT to achieve our goal of delivering projects in accordance with baselines on time, cost, serviceability, and quality. In the past, we focused on the automation of individual workflows for productivity gains. For examples, Computer Aided Drafting (CAD) techniques were used to improve the efficiency and quality of drawing production. Quantity surveying packages are used for the taking off process and the preparation of bills of quantities.
What is our way forward? While IT applications for specific tasks are still vital, we now emphasize more on the collaboration with our business partners, including consultants, contractors and the utility undertakers. The shift is a natural development in order to meet the needs of the industry. This move is introduced at the right time because of the maturity of the facilitating IT and the readiness of the industry to accept the instituted changes.
For the IT development, the Internet forms a global network for exchanging electronic information expeditiously and cost effectively. We can easily conduct business transactions on the Internet. However, people may have concerns on the security issue and the legal status of such transactions. The Electronic Transactions Ordinance (ETO), which was enacted in early 2000 has given us the answers. It provides electronic records with the same legal status as hard copies and puts in place a Public Key Infrastructure for assuring the confidentiality, non-repudiation, and integrity of electronic transactions.
For the construction industry, both the Government and our business partners have made substantial progress in automating their workflows. We are now ready to start adopting electronic collaboration. Such view has been reflected in the Construction Industry Review Committee's (CIRC) recommendations. CIRC recommended the "Government to expedite the development of a common platform for electronic communications within the local construction industry."
Now, let's look at what we have recently done on electronic collaboration. One of the examples is the electronic tendering of works contracts. With the full support of the construction industry, we have formulated a robust e-tendering framework and started implementing the scheme in stages. The electronic dissemination of tender documents commenced in August 2000 and has been operating smoothly. Another example is the electronic circulation of utilities information currently being implemented by Highways Department, Drainage Services Department, Water Supplies Department and five local utility undertakers. The system is scheduled for operation in early 2002.
To sustain the momentum of the use of IT in the construction industry, we need a coherent strategy on electronic collaboration. We call this key IT initiative as the "Electronic Services Delivery Strategy for Public Works Projects" or "ESD strategy" in short.
In early 2001, we have made an important step on the development of the ESD strategy. We have appointed consultants to undertake a Study on Electronic Services Delivery for Works Projects. The main objective of the study is to review the existing public works delivery process and formulate the required ESD strategy. A rigorous and structured methodology has been adopted for the study. Such methodology will ensure that the final ESD strategy will fulfill several crucial requirements.
Firstly, the strategy should be a robust and comprehensive framework for electronic collaboration among participants of works projects. Secondly, it should cater for the requirements of not only the Works Departments, but also our business partners. Thirdly, the strategy should be business-led instead of IT-led. It should be driven primarily by the business requirements of the project participants.
The study is divided into four stages and will take one year to complete.
The first stage is fact finding, which has already been completed. As electronic communication will be the primary means of collaboration, the focus has been put on the messages exchanged between the project participants. We have identified the business processes in project delivery and built a model to represent the messages involved in various processes. We have also identified the problems and issues that will affect project delivery, and the opportunities for making improvements through streamlining the communication processes.
The second stage is the formulation of a preliminary ESD strategy. We shall formulate the high level objectives of the strategy and the measures for electronic collaboration. We shall also conduct an evaluation of the effectiveness of the proposed measures.
The third stage is an industrial consultation which will take place in September 2001. We shall introduce the preliminary ESD strategy to the stakeholders by means of a consultation document. It will be circulated to industry trade associations, professional institutions, contractors and consultants involved in public works projects. We shall collect comments from them for refining our strategy. I hope you will actively participate in the consultation process. In addition, we shall also organize seminars and road shows to engage the construction industry directly in the exercise.
The fourth stage is the finalization of our ESD strategy. Due considerations will be given to the comments of the stakeholders collected during the consultation process.
I would like to highlight three key issues that will be addressed in the ESD strategy. They are the data standard, the electronic communication for contract administration, and the strategy for development of ESD applications.
The data standard is a fundamental issue for electronic collaboration. Electronic communications are effective only when we have a common data standard. We have made some progress in this important area. For electronic tendering, we have established the data formats for exchanging tender documents. We have also commissioned a consultancy study that will soon deliver a common CAD standard for public works projects. The common CAD standard will save the project participants much effort in dealing with a multitude of departmental standards. It will also facilitate better data re-use through standardization of drawing symbols and settings.
The ESD strategy will cover how data standards should be improved to facilitate better collaboration. For example, the use of open data formats will facilitate more intelligent processing of data by the recipients of electronic messages sent through the Internet. The Extensible Mark Up Language has gained considerable popularity as a means for facilitating data exchange and data re-use. The consultant will consider the feasibility of incorporating this technology into the ESD strategy.
The use of electronic communication for contract administration is another key issue to be considered in formulating the ESD strategy. Traditionally, hard copy correspondences are used for contract administration in the construction industry. We need to devise a new scheme to facilitate the use of electronic communication in works contracts, especially for those with contractual implications. I wish to assure you that we will proceed with great care on this issue. In deciding how to migrate to the electronic regime, we shall ensure that there are robust procedures for ensuring the security, integrity and confidentiality of electronic communication. We shall fully consider the views of the stakeholders involved and their readiness to switch to the new mode.
The strategy for ESD application development is the last key issue that I wish to highlight. It will cover both the short term and the long term application development. In the short term, one of the potential areas is the interfacing of electronic messages with in-house applications. For instance, if an intelligent data format is adopted for site correspondences, there will be the potential for the development of applications that will automatically extract the pertinent information from the electronic messages and route them through the workflow management systems of the project participants.
To conclude, our ESD strategy will be delivered by early 2002. It will form a blueprint for leveraging on IT to facilitate better collaboration of the construction industry. I would like to take this opportunity to invite you to participate actively in the industrial consultation scheduled for September 2001. Your support is vital to its success.
Thank you very much.
End/Thursday, June 28, 2001
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