Guidelines for implementing DMW projects€¦ · Works (DMW) Programme had beencreated under the...

Guidelines for Implementing

District Minor Works Projects

Table of Contents Page I. Introduction 1 II. Ambit of District Minor Works Block Vote 1 III. Provision for District Minor Works 3.1 Annual Provision 2 3.2 Allocation to 18 Districts 2

IV. Role of District Councils 3 V. Identification of District Minor Works Projects 5.1 Type of Projects Covered 4 5.2 Collation of Local Views 4 5.3 Prioritization of Projects 5

VI. Implementation of District Minor Works Projects 6.1 Lead Departments for District Minor Works Projects 5 6.2 Mode of Works Delivery for District Minor Works Projects 6 6.3 Project Delivery under Term Consultancy Approach 7

6.4 Implementation Workflow 13

VII. Management and Maintenance of District Minor Works Projects 7.1 Responsible Departments 13 7.2 Funding Arrangements 14

VIII. Administrative and Financial Arrangements 8.1 Role of the Administration 15 8.2 Procurement Requirement for Hiring of Consultant 18

8.3 Payment Arrangements 19 8.4 Other Miscellaneous Arrangements 19

Guidelines for Implementing District Minor Works (Rev. Ver. Dec 2019)

List of Annexes: Annex 1 Examples of District Minor Works Projects

Annex 2 Sample Project Statement

Annex 3 Flow Chart on Implementation of HAD-led District Minor Works Project

Annex 4 Flow Chart on Implementation of LCSD-led District Minor Works Project

Annex 5 Sample District Monthly Summary on Expenditure of District Minor Works Projects

Revised Version: December 2019


- 1 -

I. Introduction 1.1 Following the announcement by the Chief Executive in his Policy

Address of 2005-06 that District Councils (DCs) would be involved in the management of designated district facilities, the Administration carried out a review on the role, functions and composition of DCs in 2006. The review recommended, inter alia, that DCs should have greater involvement and more resources to initiate and implement minor works in the districts, particularly those district facilities the management of which involves DCs. A dedicated block vote on District Minor Works (DMW) Programme had been created under the Capital Works Reserve Fund (CWRF) with effect from 1 April 2007 to facilitate DCs in discharging their enhanced role.

1.2 These guidelines outline the ambit of the block vote and implementation

details of DMW projects. Home Affairs Department (HAD), Leisure and Cultural Services Department (LCSD) and their works agents shall observe these guidelines in the delivery of DMW projects.

II. Ambit of District Minor Works Block Vote 2.1 The DMW block vote is to fund district-based works projects

implemented by DCs costing up to $30 million each to improve local facilities, living environment and hygienic conditions in the territory.

2.2 It covers minor building works, fitting out works and minor alterations,

additions and improvement works including furniture and equipment replacement incidental to such works, and slope inspections and minor slope improvement works in respect of all the district facilities under the purview of the DCs. It also covers all costs to be incurred in the planning of the above projects, such as consultant fees, feasibility studies, site investigation and other studies.

2.3 Temporary facilities or structures, such as festive lighting or decoration,

which would last for a relatively short period of time and then be dismantled, should not be charged to the DMW block vote.


- 2 -

III. Provision for District Minor Works 3.1 Annual Provision

3.1.1 When the DMW Programme was fully implemented in 2008-09, the annual provision for the DMW block vote was $300 million. The provisions afterwards are subject to the approval of the LegCo Finance Committee on a yearly basis. Since 2013-14, the annual provision for the DMW block vote has been increased to $340 million.

3.1.2 As with all block votes under the CWRF, the total costs of

approved projects, including the outstanding contractual payments for projects under construction, will likely exceed the annual provision of the vote since project expenditures might fall into different financial years. As a general rule, the total level of over-commitment for block allocation should not exceed 200% of the approved provision of the block vote for that financial year. Notwithstanding the allowable over-commitments, the annual expenditure should not exceed the annual provision except with the approval of the LegCo Finance Committee for supplementary provision.

3.2 Allocation to 18 Districts

3.2.1 A small central pool of funds may be used to cater for unforeseeable cash flow requirement during the year, e.g. emergency works in 18 districts such as desilting necessitated by flooding. Due to the nature of such works, an umbrella endorsement from all DCs for deploying the central pool of funds would be sought at the beginning of each financial year. The remaining provision will be used to fund projects in 18 districts subject to the approval of the relevant authorities (see paragraph 8.1.4 for details of the delegated authorities for approving DMW projects).

3.2.2 While DCs are given the full flexibility to prioritize and

implement new projects within the districts’ allocated provisions, they need to observe the following rules:

(i) the total costs of approved projects in a financial year can

exceed the allocated annual provision by not more than 200% (see also paragraph 3.1.2 above); and

(ii) the total cash flow (including those for on-going projects


- 3 -

committed in previous years as well as for new projects) to be incurred in a financial year should be as close to the allocated provision as possible to avoid over- or under- spending.

3.2.3 On (ii) above, to facilitate DCs’ planning and prioritization of

projects in the year, the HAD Headquarters will make available to all districts at the beginning of the financial year the total amount they can spend in the year. Where necessary, resources will be redeployed among districts during the course of the year by the HAD Headquarters in consultation with parties concerned to avoid over- or under-spending of the DMW block vote provision.

3.2.4 Starting from April 2013, $20M has been reserved annually for

streamlining process of payment of consultancy fees and resident site staff cost under Term Consultancy projects (see paragraph 6.3 below).

IV. Role of District Councils 4.1 Subject to the availability of funds and with the assistance of HAD

District Offices (DOs) and LCSD, DCs are responsible for -

(a) initiating projects and collating local views and district aspiration; (b) endorsing projects proposed by government departments; (c) deciding on the scope and scale of projects; (d) setting the relative priorities of projects; (e) determining the timetable for implementation; and (f) monitoring the progress of implementation through regular

progress reports submitted by the Administration/works agents. 4.2 District Council members who take part in the district minor works need

to make appropriate declarations to avoid any conflicts of interests.


- 4 -

V. Identification of District Minor Works Projects 5.1 Types of Projects Covered

5.1.1 DC members may propose to the current DC the implementation of minor works projects for the benefit of the local community. DOs will maintain a register of projects suggested by DC members. Annex 1 provides some examples of the types of projects which may be identified for implementation under the DMW block vote.

5.1.2 To create impact and bring significant benefits to the local

community through improving the local environment, DCs are encouraged to implement large-scale projects with more design elements. Priority should also be given to improvement and upgrading of existing LCSD leisure/cultural facilities and HAD community facilities the management of which involves DCs.

5.1.3 Funds of the DMW block vote should not be used for –

(a) projects intended for the exclusive and/or personal benefit

of an individual or a group of individuals;

(b) any work within government offices, because the responsibility for addition, alteration and improvement to such offices rests with the concerned department;

(c) save for paragraph 5.1.4 below, projects within private buildings, because the responsibility for improving the environment in indoor private areas should rest with the owners or tenants; and

(d) projects involving land resumption.

5.1.4 Funds should normally not be used for projects on access

roads/walkways and beautification of external walls on private land. Consideration may only be given to funding these projects on an exceptional basis and provided that it can be clearly justified that the public at large will be benefited and owners’ consent is obtainable.

5.2 Collation of Local Views

5.2.1 DCs are responsible for collating local views and district aspiration on district minor works. DCs will then reflect the


- 5 -

community’s views to the works agent, make suggestions to the preliminary designs and endorse the finalized designs submitted by the works agents.

5.3 Prioritization of Projects

5.3.1 To facilitate early implementation of projects in response to local demands, each DC should agree on the priorities of the identified projects. The project proponent1 should prepare a project statement which broadly defines the scope of the project (Annex 2 shows a sample project statement). Based on the project statements, DC should endorse in principle those projects which are accorded with high priority. The lead departments (see paragraph 6.1.1 on identification of lead department) will then take the endorsed projects to the next stage of implementation. For projects to be implemented through the term consultancy approach (see Section 6.3 for details of the approach), the term consultants will have to be paid for work undertaken starting from the next stage of implementation.

VI. Implementation of District Minor Works Projects 6.1 Lead Departments for District Minor Works Projects

6.1.1 As a general principle, HAD will be the lead department to work with DCs in implementing minor works that are related to community halls and others which improve the living environment and hygienic conditions of the district; and LCSD will be the lead department to work with DCs in implementing minor works that are related to leisure, cultural, sports, soft landscaping works and recreation type of facilities. Please see Annex 1 for further details.

6.1.2 After obtaining DC’s endorsement in principle of a project, the

lead department should take the following steps to explore the project’s preliminary feasibility –

1The project proponent may be a DC member if the project is initiated by an individual member, or a government department (e.g. HAD DO, LCSD). For projects proposed by other individuals/organizations, they should first obtain support from a DC member or a government department and then have to submit the projects to DC for consideration and endorsement.


- 6 -

(a) to invite the works agent (see paragraph 6.2.1 on the works agents for DMW projects) to conduct technical feasibility study, preliminary design options and provide preliminary cost estimate and cash flow forecast;

(b) to ask the works agent, with the assistance of the lead department where appropriate, to consult concerned government departments and utility companies as necessary e.g. Government Property Agency on the issue of site utilization, Planning Department on the issue of land use zoning and planning permissions, and Lands Department on land allocation and related matters; and

(c) to explore and confirm that the recurrent consequences of the proposed project can be properly met (see Sections 7.1-7.2 on management and maintenance of DMW projects).

6.1.3 When the preliminary feasibility of a project is confirmed, the lead department should seek DCs’ endorsement on the project’s cost estimation and timetable for implementation with due consideration of the overall planning on the cash flow requirements of DMW projects under their purview as stated in Sections 3.1 and 3.2 above.

6.2 Mode of Works Delivery for District Minor Works Projects

6.2.1 DMW projects are implemented by a works agent who may be

HAD, a consultant, LCSD or government works department. The term consultancy approach provides a greater variety of designs and responds better to aspirations of DCs. On the other hand, HAD in-house staff can implement projects with little design element quicker and more cost-effectively. As a general principle, the works agent should be determined as follows –

(a) Architectural Services Department (ArchSD) is

responsible for works at existing LCSD venues and HAD community halls, etc. For special cases where ArchSD cannot take up the works at existing LCSD venues, these works may be assigned to the architect-led term consultants at the discretion of Chief Engineer (Works);

(b) Architect-led term consultants and quantity surveying (QS) term consultant are responsible for LCSD-led projects at new sites. They are also engaged for the


- 7 -

delivery of larger scale or complex HAD-led projects which require architectural/engineering/building services input so as to make the best use of the services and expertise of term consultants;

(c) HAD in-house staff are responsible for HAD-led projects with little design elements such as cleansing, painting and repairs of HAD facilities, desilting of drains and channels, grass cutting, provision of standard street furniture and landscapes, etc.; and

(d) Notwithstanding (a) to (c) above, a works department might be the works agent if the project is complex and/or beyond the capability of HAD Works Section.

6.2.2 The respective DOs (if HAD is the lead department for the

project) or AD/LCSD (if LCSD is the lead department for the project) may consult the project manager (see paragraph 6.3.3 for details on project manager) and decide who should be the works agent for a project. The lead department should inform DC of the works agent responsible for the project.

6.2.3 Under the term consultancy approach (see Section 6.3 for details on the approach), architect-led term consultants will be engaged for implementation of a number of projects within the service period of normally three years. A QS term consultant will also be engaged to provide independent quantity surveying services to support the architect-led term consultants. The advantage of the term consultancy approach is that it helps the appointed consultants to build up knowledge of government procedural and documentation requirements and become more experienced down the service period. It also saves time and administrative overheads in consultant selection for each and every project.

6.3 Project Delivery under Term Consultancy Approach

6.3.1 Responsibilities of architect-led term consultants

Architect-led term consultants need to work closely with the DCs and provide timely response to their requests. As the works agent, they need to carry out the following duties with the support of the QS term consultant where necessary –


- 8 -

6.3.1.1 Project planning

- Carry out technical feasibility study, including identification of site constraints, estimation on the order of costs and time requirement, etc.

- Carry out minor site investigation works including trial pits, topographical surveys, etc.

- Prepare sketch design and attend DC meetings as necessary to incorporate DC’s views.

- Study the maintenance implications of design and selection of materials, and consult the responsible maintenance departments about the maintenance of structures and facilities.

- Prepare detailed design including drawings and specifications and obtain DC’s endorsement of the final design.

- Prepare pre-tender cost estimate and projected cash flow.

6.3.1.2 Tender for construction

- Prepare tender documents, invite tenders and prepare tender assessment reports.

6.3.1.3 Construction works

- Supervise construction progress, ensure the works are up to the specified standards and attend to ancillary issues, e.g. works site safety, emergencies such as flooding.

- Assess applications for variations in design and cost estimate.

- Prepare interim payments. 6.3.1.4 Work completion

- Carry out final workmanship check. - Carry out improvement works if necessary. - Certify completion of works. - Consolidate and submit as-built record

drawings, operation and maintenance manuals, quality certificates, warranty certificates, etc, as appropriate, to lead department and maintenance agent for record.

- Recommend final payment. - Issue maintenance certificate. - Supervise contractors during defects liability

period for any outstanding/defect works.


- 9 -

6.3.2 Responsibilities of QS term consultant

The QS term consultant will work in conjunction with the architect-led term consultants and provide the following services – 6.3.2.1 Project planning

- Carry out pre-contract cost planning and cost control.


- Assist in the preparation of tender documents.

- Assist in the preparation of tender assessment reports.

- Assist in the preparation of contract documents.


- Carry out post-contract cost control. - Carry out valuation of interim certificates. - Prepare accounts of variations upon request.

6.3.2.4 Work completion

- Assess final contract sum. - Assist in settling contractual claims.

6.3.3 Responsibilities of HAD Works Section

A core project management team has been set up in HAD Works Section. As the project manager, the team is responsible for ensuring the projects are commenced and completed on time, within budget and up to the requirements of the lead department. The project managers should hold regular Performance Review Meetings (PRM) with the term consultants to review the project programme and performance of the term consultants. Brief notes of meetings should be kept. If these issues have been discussed at other ad-hoc meetings, written records of these discussions should be filed. The project management duty includes preparing, vetting and verifying the relevant documents, as well as providing advice and recommendations to the lead department. Details are as follows –


- 10 -


- Upon receiving funding approval document, issue works instruction to consultants to carry out technical feasibility study.

- Upon DCs’ endorsement on the project cost, preliminary design and programme, issue works instruction to consultants to carry out the detailed design of a project.

- Comment on consultant’s sketch designs / detailed designs, drawings and project estimate.


- Comment on tendering documents, advise on works programme and method of tendering.


- Monitor works progress and cash flow through regular meetings with consultants.

- Recommend whether variations of designs and costs should be accepted.


- Assist the consultants on the liaison with both the lead and maintenance departments in the completion and handover of the facility.

- Verify claims from consultants. - Oversee the proper submission of as-built

record drawings and maintain a library for such drawings for all completed projects.

6.3.4 Responsibility of the lead department

The lead department is responsible for liaising with all parties concerned to ensure the smooth implementation of the project. The lead department has to carry out its duties as the employer of the project, which include (but are not limited to) the following -


- Prepare project statement for project initiated by the government.

- Work out management and maintenance arrangement.

- Approve project funding for project costing up to $20 million and recommend for PSHA’s approval of projects costing between $20 million and $30 million each.


- 11 -

- Assist consultants in consultation with DCs on project design.

- Effect payment to consultants on reimbursable items upon the advice of the project manager.

- Control project/construction cost (See paragraph 8.1.7)


- Invite tender/quotation upon the advice of the project manager.

- Receive quotation from contractors on HAD’s contractors list, open quotation and record summary of quotation returns for quotation with estimated construction cost not exceeding $7 million.

- Collect tender from the Public Works Tender Board after the tender is opened for tender with estimated construction cost between $7 million and $30 million.

- Seek approval to accept tender/quotation, issue Letter of Acceptance and sign contract with the successful tenderer upon the advice of the project manager.

- Receive Surety Money from contractors for projects with a contract sum not exceeding $7 million upon the advice of the project manager.



- Effect payment to contractors upon the advice of the project manager.



- Release Surety Money to contractors upon the advice of the project manager.

- Release Retention Money to contractors at the end of the defects liability period upon the advice of the project manager.

6.3.5 Control of work progress

If the project planning stage (i.e. all tasks described in paragraphs 6.3.1.1, 6.3.2.1, 6.3.3.1 and 6.3.4.1) cannot be completed within 18 months despite all reasonable efforts and


- 12 -

resources of the consultant, the project manager may, at his discretion and in consultation with the lead department, recommend to Chief Engineer (Works) to curtail and wrap up the work of the consultant with respect to that particular project. In such cases, the consultant will be remunerated based on the actual works done, and the DC will need to reassess the scope, scale and priority of the concerned project.

6.3.6 Site Conditions and Topographical Surveys

6.3.6.1 The architect-led term consultants shall conduct topographical surveys for sitting out area projects, including pet gardens and the like, at early feasibility stage. For sites which are susceptible to ground settlement such as restored landfills sites, adequate monitoring check points within the site shall be established and installed for regular and continuous monitoring until construction works commence on site. Monitoring results shall be thoroughly assessed and the consultant shall carefully consider the design with regards to the monitoring results. HAD Works Section, the DC and the lead department shall be reported of the results regularly, including any proposed re-design (if any) for their vetting, endorsement and approval respectively. For restored landfill sites, the consultant shall also seek expert advice from the Environmental Protection Department on the issues of ground settlements.

6.3.6.2 If continuous settlement is observed during the regular

monitoring, the consultant shall seek the decision of the DC and the lead department on whether the project shall be re-designed to suit the changing site levels or shall not proceed in view of the site condition. The architect-led term consultants shall ascertain up-to-date site conditions before tendering, particularly in situations where ground settlement has already been observed in a topographical survey carried out by a consultant at an early stage, and when the design stage lasts for a long duration.

6.3.6.3 In addition, provisions shall be included in the tender

documents for restored landfills sites and the like to require the contractor to conduct another topographical


- 13 -

survey upon site commencement to verify that the design suits the site levels.

6.4 Implementation Workflow

6.4.1 Flowcharts showing key steps in implementing HAD-led projects and LCSD-led projects are at Annexes 3 and 4 respectively.

6.4.2 The implementation of DMW projects should observe all

relevant government rules and regulations including works circulars, financial circulars, etc.

VII. Management and Maintenance of District Minor Works Projects 7.1 Responsible Departments

7.1.1 As a general principle, LCSD and HAD are responsible for the management and resolving the maintenance responsibility of new projects under their respective purview. ArchSD is responsible for the maintenance of LCSD-led DMW projects and HAD community halls. The department responsible for maintaining a DMW project should, with the assistance of the project manager as appropriate, check whether the completed project meets their maintenance requirement upon taking over the completed works from the works agent. During the design stage, the architect-led term consultant shall also circulate relevant information to the maintenance departments for their comments on maintenance issues.

7.1.2 The furniture and equipment items procured under the DMW

block vote belong to the management department of the facilities. The concerned departments should follow the appropriate government procedures and departmental guidelines to properly maintain, and eventually dispose of the items.

7.2 Funding Arrangements

7.2.1 The lead department should, prior to the implementation of a DMW project, sort out the arrangement for the maintenance and day-to-day management of the completed project. The


- 14 -

maintenance and management costs of these projects should not be charged to the DMW block vote which is only to cover projects’ capital cost. The provision for maintenance and management of completed DMW projects will be allocated in the beginning of the financial year to each district with reference to the projected cash flow of recurrent expenditure for that district during the financial year. Other considerations, e.g. the committed level of maintenance and management costs will also be taken into account.

7.2.2 The lead department should work out the recurrent

consequences of a project, including whether and how these costs should be covered also having regard to paragraphs 7.2.3 and 7.2.4 below, during the project planning stage. If the maintenance and management costs of a project cannot be absorbed within existing resources, the lead department should seek funding from the provision allocated to individual districts mentioned in paragraph 7.2.1 above. As a guide, such expenditure should be around 5% of the project’s estimated capital costs.

7.2.3 In general, only recurrent expenditure arising from installation

of new facilities or construction of new venues should be charged to the recurrent expenditure provision. For improvements to existing facilities in venues not constructed under the DMW Programme, recurrent expenditure already incurred and absorbed elsewhere should not be charged to the provision.

7.2.4 The lead department should carefully scrutinise each item of

expenditure and where possible, achieve optimisation of resources through various means, e.g. by combining service contracts for venues in close proximity to cover cleansing/ security services and horticultural maintenance.

7.2.5 The lead department should closely monitor the cash flow

requirements for the recurrent expenditure during the financial year. Where necessary, resources will be redeployed among districts during the course of the year by the HAD Headquarters.


- 15 -

VIII. Administrative and Financial Arrangements 8.1 Role of the Administration

8.1.1 The Director of Home Affairs (DHA) is the Controlling Officer of the DMW block vote. In this connection, the Administration should –

(a) ensure that the project is a proper charge to the CWRF

block vote, i.e. it falls within the ambit of the vote;

(b) ensure that the funds are expended in a transparent and accountable manner, including compliance with government’s financial, accounting, stores and procurement regulations, and other expenditure guidelines under the vote; and

(c) monitor and control the expenditure of the block vote to keep the total expenditure and the level of over-commitment strictly within the approved limits.

8.1.2 All government departments involved in the DMW projects should observe the guidelines as set out in Financial Circular No. 3/2011 “Capital Works Reserve Fund – Delegated authorities in respect of block allocations” or its latest revision.

8.1.3 No expenditure should be committed or incurred before funding

approval has been obtained. Hence, assignment letters to term consultants or letters of acceptance to tenderers should only be issued after funding approval has been obtained. To avoid under-spending, works on each approved project should start within six months of the date of funding approval. Beyond that, the approval will automatically lapse unless special dispensation from Permanent Secretary for Home Affairs has been obtained in accordance with the established procedures. For projects under which pre-construction (e.g. site investigation and design by term consultants) and main construction works are covered under a single minor works item, the dates of commencement of pre-construction works should be taken as the start dates of the projects. For projects involving main construction works only, the commencement dates should refer to the dates of commencement of the main construction works. Therefore, funding approval should be sought as close to the tendering exercise as possible. Before issuing assignment letters to term consultants or letters of


- 16 -

acceptance to tenderers, the date of the relevant funding approval should also be checked to ensure compliance with the six-month requirement. In addition, the date of funding approval should also be stated when seeking approval to accept tenders as a second check for compliance with the six-month requirement. Special dispensation for extending the validity period should be sought if necessary.

8.1.4 The set of delegated authorities for approving expenditure

under the DMW block vote is as follows –

Expenditure limit per project

PSHA $30 million DHA for HAD project; or DLCS for LCSD project

$20 million

Deputy Director of Home Affairs for HAD project; or Deputy Director of Leisure and Cultural Services for LCSD project

$12 million

District Officers of HAD for HAD projects in their respective districts; or ADHA(2) of HAD for other HAD projects funded by the central pool (paragraph 3.2.1 refers); or AD(LS)1, AD(LS)2, AD(LS)3 or AD(L&D) of LCSD for LCSD projects

$5 million

8.1.5 Funding approval should be sought before any expenditure is incurred. For projects endorsed by DCs for implementation, the expenditure will be authorized as long as the appropriate authority is satisfied that the scope of a project falls within the ambit of the DMW block vote.

8.1.6 If the cost estimate of a project is expected to exceed the

originally approved estimate due to reasons such as increase in contract price and variation/additional works, approval from the delegated authority (see paragraph 8.1.4) corresponding to the


- 17 -

revised total project cost needs to be sought before funds are committed. If the revised project estimate exceeds 40% of the original estimate endorsed by DC, the lead department should report to DC.

8.1.7 Project/Construction Cost Control

For effective project/construction cost control, the following measures shall be strictly observed for all architect-led term consultants projects:

8.1.7.1 The scope and functional requirements for the project

shall be endorsed by the DC, confirmed in writing by the lead department at the outset and all well documented. The estimated/approved project cost shall be based on the confirmed scope and requirements for the project.

8.1.7.2 Any subsequent additional functional requirements

for the project shall be agreed and confirmed by the lead department before inclusion, taking into full account the revised estimated/approved project cost due to the additional requirements. Relevant documents shall all be well documented.

8.1.7.3 In principle, all functional requirements agreed and

confirmed by the lead department shall be fully incorporated into the tender documents. All draft tender drawings and documents related to the project scope and functional requirements shall be commented and confirmed by the lead department to ensure the provisions fully meet the confirmed requirements before issuance of tenders and all well documented.

8.1.7.4 Any proposed additional requirements to be included

after tender award shall be assessed for both time and cost implications and recommended by the consultants and HAD Works Section; and confirmed and approved in writing by the lead department based on the recommendations of the consultants and HAD Works Section and all well documented. Where immediate remedial measure is necessary or where the additional requirement is minor, on the


- 18 -

recommendation of the consultants and HAD Works Section, such additional works may be carried out while awaiting for the written confirmation by the lead department. Upon the written approval from the lead department, the consultant shall issue the relevant VO to contractor.

8.2 Procurement Requirement for Hiring of Consultant

8.2.1 Government regulations as well as departmental guidelines on procurement of services should be strictly followed in hiring of consultants for DMW projects.

8.2.2 For consultancy service costing $3 million or below, a

minimum of five written quotations must be obtained. The requirements set out in the relevant sections of Chapter II of the Stores and Procurement Regulations need to be strictly followed. Such consultant selection and appointment process usually takes four to six months.

8.2.3 For consultancy service with value exceeding $3 million, the

requirements set out in the Handbook on Selection, Appointment and Administration of the Architectural and Associated Consultants and the Handbook on Selection, Appointment and Administration of Engineering and Associated Consultants (the Handbooks) need to be observed. It should be noted that the Handbooks forbid any non-officials to take part in the selection of consultants. For this category of higher-cost consultancy service, it usually takes about six to nine months to complete the consultant selection and appointment process.

8.3 Payment Arrangements

All officers involved in the DMW projects should observe that payments should not be made before receiving goods and services.

8.3.1 Monitoring of expenditure

To avoid serious over- or under-spending, DOs should closely monitor the expenditure position of DMW funds allocated to


- 19 -

the district. DOs should collect expenditure details of all on-going projects (including those led by LCSD) on a monthly basis. The expenditures should be uploaded to the Works Project Management Information System (WPMIS) by DOs for overall monitoring by the HAD Headquarters in accordance with the instruction of the Development Bureau. The summary of expenditures can be generated from WPMIS on a monthly basis. A sample of district monthly summary of expenditures is at Annex 5.

8.4 Other Miscellaneous Arrangements

8.4.1 Maintenance of previously completed HAD minor works

projects

Maintenance of completed HAD minor works used to be carried out by Minor Environmental Improvement projects supported by DC fund. With DC Minor Environmental Improvement projects subsumed under the DMW programme, the related works items should be funded by DMW block vote in future. However, there are expenditures which are unsuitable to be covered by a CWRF block vote, e.g. electricity and cleansing charges. Such expenditure needs to be funded by the provision for maintenance and management of DMW projects discussed in Section 7.2.

Home Affairs Department Revised in December 2019

Annex 1

Examples of District Minor Works Projects Project Examples Lead Department (a) Upgrading works for community hall HAD (b) Provision and/or improvement of HAD Rain shelter / pavilion / arbour / bench District landmark Information board

(c) Provision and/or improvement of LCSD Local open space / park / sitting-out area /

rest garden

Soccer pitch / playground / basketball court Recreational facilities Soft landscaping works

(d) Upgrading/conversion works for sports venue /

district library / swimming pool LCSD

Annex 2 [XXX] District Facilities Management Committee, [XXX] District Council

DMW Proposal 1. Project Proponent:

[Mr. XXXX]

2. Project Title： [XXXXXXX at YYYY street] 3. Project Aim (please indicate the current problems, benefits of the proposed project,

such as beautification of landscapes, improvement to public hygiene, etc)：

4. Target Beneficiaries： () Local Residents ( ) Disabled

( ) Elderly () Children and Parents ( ) Youth ( ) Others：

5. Estimated no. of Beneficiaries： XXXX people 6. Estimated Project Cost (optional)： about $x,xxx,xxx 7. Project Outline (Please specify details, specification, user requirements and interfacing

details with existing facilities)： 1. XXXX

2. XXXX 3. XXXX

8. Project Location (Please attach map with clear indication) XX no.XX Street 9. Estimated Project Programme

(optional)： From XXX to YYY

10. Other Relevant Information (e.g. previous application, similar completed projects

example for reference): [NIL]

Signature： Name: XXX Date： xxxxxx

Sample Project Statement

HAD HQ / DO

HQ (F&SS) (for projects led by HQWS) and DO (for projects in Urban &NT) to: Release Surety Money upon completion

of works for works carried out by contractor; and

Release Retention Money upon issuing of maintenance certificate by consultants / WS.

DC Member/DO Prepare project

statement

1

2

Is the project complex and/or

beyond the capacity of HAD

and its Consultants?

4

YES

NO

3

DO Consider the project to be taken up by works

department.

5

YES

DO Project with little design elements?

6

10

NO

DO #

Seek funding approval for either feasibility study or the entire

project (supported by project fact sheet or

Cat. D paper)

DO As employer of the

project, effect payment to consultants upon

advice of PM for reimbursable items

Consultants Upon Works Order of PM, carry out feasibility study, preliminary cost estimate

and cashflow forecast and carry out site

investigation DO

Act as employer of the project

7 8

9

DO Work out management and maintenance

responsibilities and the related cost

11

Who is the

works agent?

WS / DO / DC Does DC endorse

project cost & design and programme?

WS / Consultants Prepare tender document

WS Prepare / revise project design and

cost estimate. DO/WS

Consult relevant departments (including ArchSD, EMSD, LandsD

etc.) and utilities companies

Consultants Prepare/revise project design and cost estimate. Consult

relevant departments (including ArchSD, EMSD, LandsD etc.)

and utilities companies

DO # Seek funding approval for the

remaining stages (supported by project fact sheet or Cat. D

paper) unless funding approval has been obtained under box 7

WS/Consultants Assist employer to invite tender

and arrange site meeting

DO To invite tenders, receive and open tender at the advice of PM / WS. Forward received tenders to PM /

WS

DC DO to report to DC if the revision is

above 40% DO

Seek funding approval for revised project estimate.

DO As employer of the project, seek approval to accept tender, sign

contract with tenderer upon advice of PM/WS. Receive Surety Money for projects

carried out by HAD contractors

Consultants / WS Upon award of contract to contractor, carry out site

supervision of construction works

Consultants / WS Administer contract, report progress to PM/DO/DC and

certify project completion

DO

As employer of the project, effect payments to contractor upon the

advice of PM / WS

DO Monitor expenditure position.

Collect expenditure details monthly for all on-going DMW projects

(including LCSD ones) and upload to the WPMIS for overall

monitoring.

WS

Verify maintenance requirement and take over

completed works

ArchSD Take up maintenance

responsibility of community halls WS

Take up maintenance responsibility of other projects

DO

Does project estimate exceed

approved funding?

DO Review the management

and maintenance requirement

DO Funds available for management and

maintenance?

Consultants/DO/DC Does DC endorse project

cost & design and programme?

12

YES

NO

YES YES

WS CONSULTANTS

NO NO

YES

NO

13

14

19 15

16

17

18 20

21

22

23

24

Abbreviation:

CE (W) – Chief Engineer (Works) of HAD

Consultants – Architect-led term consultants supported by QS term consultant

DC – District Council

DO – District Office

PM – Project Manager (i.e. Senior Architect’s team under HAD HQ Works Section)

WS – HAD Works Section (i.e. HQWS for urban districts and DOWS for NT districts)

25

26

27

28

29

30

31

32

WS Act as the works agent. Carry out feasibility study, preliminary cost estimate and cashflow forecast

DO Act as employer of the project

YES

NO DC Prioritize projects. Is this a priority project which DC endorses

in principle?

Put the project on waiting list for

consideration at a later time

Implementation of HAD-Led District Minor Works Project Annex 3

Note: # Project should start within six months of the date of funding approval. Approval

will automatically lapse unless special dispensation is obtained from the Permanent Secretary

for Home Affairs to extend the validity period for six more months.

LCSD Release Surety Money to contractor

upon completion of works for projects with a construction cost not exceeding $7 million ; and

Release Retention Money upon issuing of maintenance certificate by Consultants for all projects

ArchSD/EMSD Take up maintenance responsibility

LCSD

Take up management responsibility

LCSD/ArchSD/EMSD

Work out management and maintenance responsibilities and the related cost with advice from ArchSD

and EMSD

LCSD # Seek funding approval for the remaining stages

(supported by project fact sheet or Cat. D paper) unless funding approval has been

obtained under box 8 DO

Issue AW/LI to LCSD for non-consultant project

LCSD Review

management and maintenance requirements

LCSD Consider the project

to be taken up by works department.

Put the project on

waiting list for consideration at a

later time

2

LCSD

As employer of the project, effect payment to consultants upon advice of

PM for reimbursable items

3

19

LCSD Issue AW/LI to ArchSD/EMSD

ArchSD/EMSD Implement the project following

normal government works procedures.

Abbreviation:

AW/LI – Allocation Warrant / Letter of Intent

CE (W) – Chief Engineer (Works) of HAD

Consultants – Architect-led term consultants supported by QS term consultant

DC – District Council

PM – Project Manager (i.e. Senior Architect’s team under HAD HQ Works Section)

Implementation of LCSD-Led District Minor Works Project

Consultants

Prepare tender document, assist employer to invite tender and arrange site

meeting

LCSD As employer of the

project, to invite tenders/quotations, receive and open

quotations and collect tenders at the advice of

PM. Forward the received tenders/quotations to PM.

Consultants

Upon award of contract to contractor, carry out

site supervision of construction works

Consultants Administer contract, report progress to PM/LCSD/DC

and certify project completion

ArchSD/EMSD

Verify maintenance requirement and

take over completed works

LCSD As employer of the project,

effect payments to contractor on the advice of PM.

LCSD

Submit monthly expenditure details to DO.

DO

Collect expenditure details monthly for all on-going DMW

projects and upload to the WPMIS for overall monitoring

21

22 25

27 28 29 30

32

31

LCSD Does Project

estimate exceed approved estimate?

DC LCSD to report to DC if the

revision is above 40%. LCSD

Seek funding approval for revised project estimate

Yes

24

23

No

Annex 4

LCSD As the employer of the

project, seek approval to accept tender, sign

contract with tenderer upon the advice of PM. Receive Surety Money

from projects contractors with a construction cost not exceeding $7 million

26

1 4

12

DC Prioritize projects.

Is this a priority project which DC

endorses in principle?

LCSD

Is the project within existing LCSD venue?

DC Member / LCSD

Prepare project statement

Consultants Upon Works Order of PM, carry out

feasibility study, preliminary cost estimate and cashflow forecast and

carry out site investigation LCSD

Act as employer of the project

11

No

No

13

No

LCSD Funds available for management and

maintenance?

7

7

14

Is the project complex and/or

beyond the capacity of

Consultants?

5 ArchSD/EMSD

Act as the works agent. Carry out feasibility study, preliminary cost estimate and cashflow forecast

6

LCSD/ArchSD/EMSD/DC Does DC endorse project


ArchSD/EMSD

17

18

Consultants Prepare/revise project design and cost estimate. Consult relevant departments (including ArchSD, EMSD, LandsD etc.)


ArchSD/EMSD Prepare/revise project design and cost estimate. Consult relevant departments (including ArchSD, EMSD, LandsD etc.)


Consultants/LCSD/DC Does DC endorse project


20

No

15 Who is the

works agent? Consultants

16

LCSD# Seek funding approval for

either feasibility study or the entire project (supported by project fact sheet or Cat. D

paper) DO

Issue AW/LI to LCSD

9 8

Yes

Yes

No

Note: # Project should start within six months of the date of funding approval.

Approval will automatically lapse unless special dispensation is obtained from the

Permanent Secretary for Home Affairs to extend the validity period for six more

Yes

10

Yes

Yes

No

Yes

Page: 1

District :Date :

[sample][sample]

Annex 5

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Item No. Project Title[Lead

Department]

Endorsed byDFMC/DC

to

Designenndorsedand ready

for

FundingApproval

(Y/N)

Latest CostEstimate

($M)

ActualA.W

Exp. In

Cumula-tive Exp.

up to

EstimatedRecurrent

Cost

MaximumEstimatedRecurrent

Cost Remarks[DMW Project no.] ( English Title

/Chinese Title )Works

Agent(s)proceed

withFeasibility

Study (Y/N)

FundingApproval

(Y/N)

Date ApprovedProject

Estimate($M)

StartDate

CompletionDate

QuarterendingJun-15

QuarterendingSept-15

QuarterendingDec-15

QuarterendingMar-16

BeyondMar-16

15/16 upto now($M)

31/03/15($M) Cons.

FeeConst.Cost

S. Sup.Fee

in 15/16($,000)

CommittedPer Year($,000)

(i.e. % of work done, Reasons for delays,etc)

[sample] [sample] [sample] Y N Y C 0 xx/xxxx xx/xxxx 0.000 0.000 0.000 0.000 0.000 [sample] ////

0.000 0.000 0.000 0.000 0.000 0.000

: 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 : 0.000 0.000 0.000 0.000 0.000 0.000

(0.000) :

:

Legends for Project Status : : 0.000 0.000

P - Planning : 0.000 0.000

T - Tendering : 0.000 0.000

C - Construction : 0.000 0.000

F - Finish

Total A.W / Sub A.W. issuedto ArchSDTotal A.W / Sub A.W. issuedto EMSDTotal A.W / Sub A.W. issuedto other work agents

Total A.W / Sub A.W. issuedto other work agents

0.000 0.000

HAD-led Total A.W issued to LCSD

Allocation Warrent issued ($M)

Total A.W issued to LCSD

Total in [sample] District Total A.W / Sub A.W. issuedto ArchSD

Total A.W / Sub A.W. issuedto EMSD

Actual Programme[Current Programme](Original Programme)

Cashflow Forecast ($M)Works Agent /

Allocation Warrent No./

Actual Expenditure in15/16 certified up to now

($M)ProjectStatus(P/T/C/F)

Sample Monthly Summary on Expenditure of District Minor Works Projects

Guidelines for implementing DMW projects€¦ · Works (DMW) Programme had beencreated under the...

Documents

Transcript of Guidelines for implementing DMW projects€¦ · Works (DMW) Programme had beencreated under the...