Transcript Document

ENHANCING INTEGRITY
Best Practices in Construction
By
Y.Bhg. Datuk Ir. Hamzah Hasan
Chief Executive,
Construction Industry Development Board
Malaysia
22 April 2008
Construction Sector Growth & Malaysian Economic Trend (Constant Price)
For Year 1980 - 3Q 2007
25.0
20.0
15.0
15.5
10.9
9.9
9.8
10.3
6.9 6.2 7.8
6.0
10.0
16.2
15.1
14.6
11.6
5.0
21.1
18.6
17.3
10.8
10.8
9.9
9.2 10.0 9.9
9.1 9.0 9.5 8.9
10.6
8.9
5.4
7.3 6.1
3.9
5.4 5.8
6.8
5.0 5.9 5.5 5.8
6.7
4.7
3.8 3.7 3.4
4.0
4.7
4.8
4.4
4.8
4.0
3.3
3.5 3.2 3.3 3.5 3.7 3.8 3.8 4.0
3.6 3.3
3.2 3.0 2.8
2.3
-1.11.2 1.2
1.8
0.5 0.5
-0.9 -1.8 -0.5
-4.4
4.0
5.0 5.4 4.24.8
5.2
4.6 5.0
0.0
-5.0
-8.4
-10.0
-7.4
-11.8
-14.0
-15.0
-20.0
GDP (%)
Construction Sector Growth (%)
Construction Contribution to GDP (%)
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3Q'07
2Q'07
06
1Q'07
05
04
03
02
01
00
98
97
96
95
94
93
92
91
90
89
88
87
86
85
84
83
82
81
1980 - 2000 = Constant prices at year 1987
2001 - 3Q 2007 = Constant prices at year 2000
99
-24.0
-25.0
80
GDP – 3.42%
 Acts as a catalyst
for and has
multiplier effects
to the economy
 Provides
employment to
800,000 workers
Growth (%)
1
THE MALAYSIAN
CONSTRUCTION INDUSTRY
Year
2
Challenges Facing
The Malaysian Construction Industry
 Low
productivity
 Shoddy
workmanship
 Substandard
 High
materials
fatality rates at work sites
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Challenges Facing
The Malaysian Construction Industry (Cont’d)
3

Engagement of illegal &
unskilled foreign
workers

Selling of construction
materials beyond the
government controlled
price

Issue of non-payment
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Construction Industry Development
Board of Malaysia (CIDB)
4

Formed in 1994

To promote & stimulate the development,
improvement & expansion of the
construction industry in terms of
technology, business environment &
human resource

Mission is to develop a world class
construction industry
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5
Construction Industry Master Plan
(CIMP)
A 10 year blueprint for a holistic development of
the industry that encompasses:




Productivity
Efficiency
Quality
Safety & Health
Environment
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6
Construction Industry Master Plan
(CIMP)
A 10 year blueprint for a holistic development of
the industry that encompasses:-
Human Resources
 Research & Development
 Sustainability
 Information technology
 Image & professionalism

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Best Practices
7
Areas covered:
Training & accreditation of
contractors & construction
workers

Upgrading of the supervisory
& project management

Health & safety,
environmental issues &
sustainable construction
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Training & Accreditation of
Contractors
8

64,000 contractors registered with CIDB

Review the national contractor registration
system to incorporate a system based on
competency

Accreditation system to identify the competent
contractors in both management & technical
capacity

Continuous Contractor Development (CCD)
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9
Export of Services

Malaysian contractors
are currently active in
38 countries

Registry for
contractors venturing
abroad

Monitoring of
performance
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10
Issues On Payment
 Issues
of late and nonpayments
 Construction
Industry Payment
& Adjudication Act
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11
Enhancement Of Integrity

Construction Industry Integrity
Committee

One day awareness course
on integrity as the prerequisite for the renewal of
contractor’s license
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12
Code of Ethics for Contractor
CODE OF ETHICS
for
CONTRACTOR

Outlines the practices as
well as noble conduct that
must be adopted by all
contractors in order to
enhance the level of
professionalism, integrity &
accountability
Lembaga Pembangunan Industri Pembinaan Malaysia
Tingkat 7, Grand Seasons Avenue,
72 Jalan Pahang, 53000 Kuala Lumpur
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13
Six (6) Principles
Principles 1 – Honesty in carrying out
Responsibilities
Principles 2 – Compliance with the
Laws & Regulations
Principles 3 – Respect for the
Individual & Community
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14
Six (6) Principles (Cont’d)
Principles 4 – Importance of Quality,
Skills & Standards
Principles 5 – Importance of Safety,
Health & Welfare
Principles 6 – Importance of
Environmental
Preservation
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15
Training & Accreditation of
Construction Workers

Approx. 500,000 construction
personnel registered with
CIDB

Approx. 250,000 foreign
workers registered with
Home Ministry

CIDB has trained &
accredited approx. 100,000
local workers
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16
Upgrading Supervisory
& Project Management Skills

72,000 site supervisors & 46,000
projects managers registered with CIDB

Training & accreditation program &
provided a budget of almost a million
Ringgit per year.
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Occupational Safety & Health
in Construction
17

Master Plan for Occupational Safety &
Health (2005 - 2010) to complement the
efforts of the Department of Occupational
Safety & Health & fatalities at
construction sites

OSHMS MS 1722/OHSAS 18001:1999
certification
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18
Sustainable Construction
And The Environmental
Sustainable development involves balancing
& integrating social, environmental &
economic implications in decision making
process
 CIDB is currently promoting awareness on
sustainable construction & good
environmental practices & assisting
contractors in attaining the ISO14001
Environmental Management System (EMS)

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Improvement of the Delivery
19

The Government has endorsed efforts
taken by Ministry of Housing & Local
Government to change the status of
Certificate of Fitness for Occupation to
Certificate of Completion & Compliance
by end of 2005.
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Improvement of the Delivery (Cont’d’)
20

The objectives are to improve the
delivery system, to enhance
transparency and to call for higher level
of integrity from both & private sectors.

The elimination of red tapes will improve
the delivery system as well as minimize
the opportunity for corrupt practices.
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Conclusion
21



An industry that practices good governance &
upholds the values of ethics & integrity can
contribute towards the development & well
being of our society
This plays an important role towards
strengthening image & enhancing
professionalism of the construction industry.
It is no longer just a matter of domestic
efficiency; it is becoming the standard by which
all nations & economies are judged
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THANK YOU
http://www.cidb.gov.my
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