LCQ11: Site safety and contractor management
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Question:
It is reported that fatal industrial accidents and incidents of serious non-compliance committed by contractors have repeatedly occurred in the construction industry in recent years. In this connection, will the Government inform this Council:
(1) of the following information on the contractors with poor performance in relation to industrial accidents and site safety in the construction industry in each of the past five years (set out in a table):
(i) the numbers of fatal and non-fatal industrial accidents (set out by type of operations) and, among which, the numbers of those involving "bamboo scaffolding" or "metal scaffolding" works (set out by cause of accidents);
(ii) in respect of public works projects, the number of government project consultants/contractors with performance ratings of (a) "Poor" or "Very Poor" in site safety and (b) "Poor" or "Very Poor" in overall performance, and among which, the number of consultants and contractors who have been suspended from tendering or removed from the lists concerned (set out by type of non-compliance);
(iii) the numbers of prosecutions instituted by the Government in respect of fatal industrial accidents and the cases convicted and the penalty imposed on each of the convicted cases; and
(iv) the application situation for legal aid in each case of industrial accident involving civil claims (set out by fatal and non-fatal accidents);
(2) given that according to the direct investigation operation report of the Office of The Ombudsman released in April this year in relation to the Government's regulation of occupational safety and health in the construction industry, from 2018 to 2023, fatal industrial accidents in the construction industry accounted for more than 80 per cent of fatal industrial accidents in all industries, and the Office found that some "competent persons" have failed to properly inspect the safety of bamboo scaffolds before signing the prescribed form (i.e. Form 5), how the authorities will improve the monitoring mechanism and step up enforcement efforts to ensure that the competent persons will strictly discharge their duties;
(3) given that according to the report mentioned in (2), the industrial accidents involving bamboo scaffolding works are related to the unauthorised issue of the prescribed form, whether the Government will review afresh the policy direction of reducing the use of bamboo scaffolds in public works projects; if so, of the details; if not, the reasons for that;
(4) in respect of cases of public works projects in which contractors/consultants with performance ratings of "Poor" or "Very Poor" in overall performance were not suspended from tendering in the end, of the Government's reasons for making such decisions (set out by cases); whether it will, from the perspective of value for money, review the weightings of the various scores for assessing the performance of contractors/consultants; if so, of the details; if not, the reasons for that; and
(5) of the measures in place to prevent the relevant personnel of contractors who were removed from the register of general building contractors by the Government due to serious non-compliance from undertaking the Government's public works projects by means of setting up new companies?
Reply:
President,
The Government attaches great importance to site safety. The Labour Department (LD) has been closely monitoring the levels and changes of occupational safety and health (OSH) risks in various industries, including the construction industry. Pursuant to the risk-based principle, the LD formulates and adjusts strategies for inspection and enforcement, publicity and promotion, as well as education and training to uplift the OSH performance. The Development Bureau (DEVB) from time to time reviews the safety management system of public works, being part of the construction industry, and adopts a multi-pronged approach by implementing measures on various fronts, including project design, tender evaluation, contract provisions, works supervision, technology application, regulation of contractors, as well as publicity and promotion, with a view to uplifting site safety performance of public works.
Having consulted the LD and the Legal Aid Department (LAD), the reply to various parts of the question is as follows:
(1) (i) According to the OSH statistics analysed by the type of accidents by the LD, the breakdown of the numbers of fatal and non-fatal industrial accident cases in the construction industry from 2020 to 2024 (by type of accidents) is at Annex 1.
Among the fatal industrial accident cases, the relevant statistics involving working on bamboo scaffolds and metal scaffolds are at Annex 2. The LD does not maintain relevant statistics on non-fatal industrial accident cases involving bamboo scaffolds and metal scaffolds.
(ii) Works departments prepare quarterly performance reports to assess the performance of contractors across various public works contracts, with site safety being a key attribute. Annex 3 lists the number of public works contractors rated as "Poor" or "Very Poor" in site safety and overall performance, as well as those suspended from tendering in the past five years. Annex 4 provides similar information for public works consultants, giving the number rated as "Unacceptable" and those suspended from tendering in the same time period.
(iii) The breakdown of the number of prosecution cases and convicted cases initiated by the LD for fatal industrial accidents in the construction industry in the past five years are set out at Annex 5. The penalties of relevant convicted cases are set out at Annex 6.
(iv) The LAD provides legal aid services covering cases involving personal injuries claims, employees' compensation and traffic accidents. The LAD does not maintain statistics based on the industry of the applicant or the deceased involved and therefore cannot provide the breakdown of legal aid services provided in relation to industrial accidents in the construction industry.
The LAD is not in position to disclose the details of each individual case because of the restriction under the Personal Data (Privacy) Ordinance and the Legal Aid Ordinance also contains provisions maintaining confidentiality of information relating to an applicant or aided person.
(2) The LD adopted a risk-based approach to strengthen the random checking on the approved forms signed by competent persons during routine inspections. The LD will also conduct special inspection exercises targeting at competent persons to combat and eradicate illegal activities. From May 6 to 16 this year, the LD conducted 1 364 special inspections focused on the approved forms signed by competent persons. During the inspections, we found that a small number of Form 5 (commonly known as scaffold reports) issued by competent persons were inappropriate. The LD has requested relevant personnel to provide relevant inspection/checking records for follow-up. If false statements are found in the scaffold reports issued by them, the LD will take actions according to the law, including initiating prosecutions and referring the cases to the Police and relevant registration bodies for follow-up.
The LD is planning to develop a "scaffold inspection checklist" for use by competent persons when inspecting scaffolds in order to strengthen the regulation of their inspection work under the OSH legislation and reduce the chance of making false statements on the approved forms.
(3) Provided relevant legislative requirements and code of practices are fulfilled, both bamboo scaffolds and metal scaffolds are safe. The use of metal scaffolds in construction works has become an inevitable trend, and metal scaffolds have been widely adopted in the construction industry in advanced economies in the world and on the Mainland. Metal scaffolds could provide better access, platform, and walkway. In addition, they have merits in environmental protection and sustainability, fire resistance, rigidity and durability.
To further promote the adoption of metal scaffolds, the DEVB recently required 50 per cent of new public works building works contracts of the Government, with tenders to be invited on or after March 21, 2025, to adopt metal scaffolds. Based on the new public works building works contracts in 2025, 50 per cent of new contracts means one to two new building works contracts. With experience gained, the DEVB will continue to maintain close communication with the construction industry and adopt a pragmatic attitude to encourage the industry to keep pace with the times and adopt metal scaffolds in a progressive manner. The Government has no intention to ban bamboo scaffolds and will continue to engage the industry and other relevant stakeholders to jointly explore measures from various aspects (including the application of technology) to enhance work safety of bamboo scaffolds.
(4) The DEVB closely monitors the performance of contractors in delivering public works contracts through the quarterly performance evaluation mechanism for public works contractors. If a contractor's performance is found to be unsatisfactory, we will require immediate improvements from the contractor and implement various follow-up and regulating actions based on the severity of the performance issues identified.
In respect of regulating actions, if a contractor is involved in serious site safety incidents (irrespective of whether they occurred on public works sites or those of other public or private sector organisations), we will immediately suspend the contractor from tendering for public works contracts in accordance with the current regulating mechanism. Any tenders that the contractor has already submitted for public works contracts will not be considered during the regulating period. Following this, a Panel of Enquiry will be held to determine the need for further regulating actions against the contractor, including suspension from tendering or even removal from the approved lists.
In addition, if a contractor's site safety performance is rated as "Very Poor" in the quarterly performance evaluation, its overall performance in the performance report will also be rated as "Very Poor". If a contractor's overall performance is rated as "Very Poor" for two consecutive quarters, we will suspend the contractor from tendering for public works contracts until its performance consistently meets satisfactory level. In general, upon receiving a "Very Poor" report, a contractor will implement effective improvement measures immediately. As for engineering consultants, we have a similar regulating mechanism in place as well.
Although some contractors or engineering consultants have been rated as having "Poor" or "Very Poor" overall performance, their performance has not yet met the threshold for triggering suspension of their tendering qualifications. However, under the current tender evaluation mechanism, a contractor's past site safety performance, accident rate in public works contracts, and its records of serious site safety incidents (regardless of whether they occurred on public works sites or those of other public or private sector organisations) are key attributes assessed. These attributes make up about 30 per cent of the overall technical score. Therefore, if a contractor's site safety performance is rated as "Poor" or "Very Poor", the overall technical score of its tender will be lower, directly impacting its chance of winning future public works contracts. We will continue to review and enhance the performance evaluation and regulating systems for public works contractors and engineering consultants as needed.
(5) For contractors tendering for and undertaking public works contracts, the DEVB maintains approved lists of contractors and an associated regulating mechanism to ensure relevant contractors meet certain standards in respect of financial capability, professional knowledge, project management, site safety, etc. This enables public works to be delivered properly and efficiently.
When applying for admission to the approved lists, a contractor must fulfil a series of admission criteria, including project experience, site safety, financial capability, management, staff employment, and integrity, etc. In reviewing an application for admission, we consider the contractor's relevant project experience, senior management, safety personnel and technical staff employed, financial capability (such as employed capital and working capital as reflected in audited financial statements in the past three years), and the past site safety performance of the company and relevant responsible persons. Therefore, it is not possible for a delisted contractor to easily regain approval simply by establishing a new company.
Ends/Wednesday, June 25, 2025
Issued at HKT 19:15
Issued at HKT 19:15
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