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Article


Top level Article
¡§Getting paid for work on Safety and Environment¡¨
( 06.06.2006 17:29 )

Many members have the experience of realizing that they are required to perform duties related to site safety and environmental management, but are not getting paid for the work. The Federation had taken up the task of discussing the issue with Government and with the Housing Authority for some time. Recently, both the Architectural Services Department (ASD) and the Housing Authority (HA) have separately announced initiatives to allow E & M Specialist Sub-contractors to be paid for the work.

ASD is planning to implement a ¡§Pay fro Safety and Environment Scheme¡¨ (PFSES) which will be applicable to Nominated Sub-contracts(NSC). The sum allowed for PFSES for NSC shall be 2 % of the sub-contract value in general. Cost of E&M equipment shall be excluded from the ¡§contract value¡¨ in estimating the sum allowed for PFSES as the cost of E&M equipment is deemed to have no relevance to the contractor¡¦s input and effort in respect of safety. The implementation is likely to commence in the second quarter of this year.

An amended PFSES BQ and Preambles and Method of Measurement for Sit Safety and Environmental Management will be included in future NSC¡¦s. Members please note that the ¡¥quantity¡¦ and ¡¥rate¡¦ column in the Bill will be inserted and completed by the project officer to form the sum allowed for PFSES for NSC during the tender document preparation. Hence, the sum for this Bill is pre-fixed with no choice of exclusion by the tenderers.

The arrangement is in line with the principle that work related to site safety and environment management has to be done. It is therefore fair that all tenderers should make allowances for the work. By making it mandatory, no tenderer may inadvertently miss this item in their tender or making insufficient allowances.

The Housing Authority is also advocating a similar scheme called the ¡§Pay for Site Safety, Environmental Management and Site Hygiene Scheme¡¨ (PSEHS). This scheme will be applicable to NSC¡¦s for Electrical, Lift & Escalator, FSWP and ACV installations. The scheme is likely to adopt payment based on actual work input, instead of a flat rate. Different rates may apply according to the types of work done, and to the respective trades. The scheme is still under consultation, and may be tried out in some pilot projects before full implementation to all projects.

These initiatives by ASD and HA will provide a more level playing field for E&M subcontractors in their tendering processes. When every subcontractor has to make the same allowances for the work related to safety, environment, and hygiene and these allowances are separated from the subcontract work itself, there is every incentive for the subcontractors to perform their duties fully, as they cannot pocket the difference by not doing the work.

For any further questions on the above please contact the Safety and Contract Committees of the Federation through the Secretariat.


Written by
Mr C K Lau
Chairman of Contracts Committee