LCQ13 : Latest position of ArchSD re-engineering


Following is a question by the Hon   and a written reply by the Secretary for the Environment, Transport and Works, Dr Sarah Liao, at the Legislative Council meeting today (June 18) :


Question:

It has been reported that the results of the study conducted by a consultant commissioned by the Government regarding the function of the Architectural Services Department (ArchSD) show that the unit cost of the ArchSD is lower than those of the private sector contractors.  Despite these results and repeated flaws in projects participated by private sector contractors, the Government still insists on reducing the functions of the ArchSD by outsourcing the supporting and follow-up projects  in its charge in 2003-04.  In this connection, will the Government inform this Council of:

(a) the supporting and follow-up projects  in the charge of the ArchSD in 2003-04, broken down by the categories of property maintenance and new construction projects, the costs involved and, among them, the respective amounts of expenses on staffing and project works;

(b) the rationale for outsourcing the above projects; and

(c) the latest position of the re-engineering of the ArchSD, including the number of posts to be deleted in each of the years between 2003-2004 and 2005-2006, the posts and job types involved and arrangements to be made for the affected staff?


Reply:

Madam President,

In the business review of the Architectural Services Department (ArchSD) conducted in 2001, the consultant commissioned by the Government found that the costs of delivering new projects by in-house resources or by outsourcing were broadly comparable.  If the costs of monitoring the performance of consultants by the ArchSD were taken into account, the professional services costs were slightly higher in those projects where some of the professional services were outsourced.  The consultant pointed out that outsourcing would help reduce costs.  The construction costs have been declining over the past two years since the business review.  We therefore believe that outsourcing will become more cost-effective and will enable the ArchSD to concentrate on dealing with the strategic matters.

(a) In 2003-04, ArchSD is responsible for the delivery of about 450 new construction projects, which total $78.7 billion in value and are either under design or construction stage; and the total gross floor area of government premises being maintained by the ArchSD is about 28.3 million square metres.  In 2003-04, the estimated works expenditure for new building projects will amount to approximately $8.3 billion and the maintenance cost of government premises about $4.4 billion.  The total staff cost involved in these two areas is estimated at around $747 million.

(b) To achieve the Government's objective of "reprioritising the provision of services, reorganising the structure of government departments, reengineering procedures and making full use of the market", the ArchSD will continue to outsource the professional and technical services of new construction projects, devolve the duties in various types of maintenance works and strengthen its role as a professional advisor.

(c) The ArchSD plans to reduce its establishment from the existing 2,037 to 2,000 in 2003-04, and to 1,721 and 1,583 in 2004-05 and 2005-06 respectively.  This plan is subject to review and update in light of the progress of outsourcing, the implementation of the second Voluntary Retirement Scheme and the deployment of staff to other departments.  The posts to be reduced will include those in professional, technical, site supervisory, general and common grades.  The Government will address any problems arising from the reduction of posts through various practicable options, including natural wastage, retraining and staff redeployment.


End/Wednesday, June 18, 2003
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