THE HONG KONG HOUSING AUTHORITY. Memorandum for the Building Committee
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1 BC 130/99 THE HONG KONG HOUSING AUTHORITY Memorandum for the Building Committee Revision of the Approved Client Brief, Scheme Design, Approved Contract Sum, Approved Project Budget for Construction of Homantin South Phase 4 (Contract No. 189 of 1997) PURPOSE This paper is to seek Members approval for the following (d) (e) (f) Scheme Design for the construction of new Resource Information Centre (RIC); Revision to the Approved Client Brief; Proposed arrangement for the fitting out works of the Exhibition Centre; Provision for computer network infrastructure; Increase of the Approved Contract Sum from $ M to $ M; and Increase of the Approved Project Budget from $ M to $ M
2 - 2 - BACKGROUND 2. Past events which are relevant to this project are as follows BC approval to Client Brief, Control Plan and Project Estimate (Paper No. BC 206/95 dated 21 December 1995 refers); BC approval to Revised Client Brief, Control Plan and Project Estimate (Paper No. BC 146/96 dated 19 September 1996 refers); BC approval to the Revised Client Brief, Scheme Design and Project Budget (Paper No. BC 34/97 dated 20 February 1997 refers); (d) DDRP endorsement to the detailed design on 16 May, 1999; (e) BC approval to Tender for Construction of Homantin South Phase 4 (Paper No. BCT 97/98 dated 19 March 1998 refers). The Contract period is 26 months and the works are anticipated to be completed in October The Building Committee approved an alternative site for the mock up area at GIA-TK389 near junction of Fat Kwong Street and Sheung Lok Street ( Paper No. BC 32/99 dated 25 February 1999 refers). 4. With the relocation of the mock up area on level 5 of HMTS Phase 4, a working group with representatives from the four Business Branches headed by ICRD of the Department was set up to review usage of the ex-mock up area in HMTS Phase 4. PROPOSED RESOURCE INFORMATION CENTRE
3 The working group from the Department proposes to provide an enclosure at the ex-mock up area for accommodation of a new 650 m 2 RIC, which is to replace the 500m 2 departmental library originally located on level 6 of HMTS Phase 4. The area on level 6, in turn, will be converted to office use. The RIC will become an integral part of the Exhibition Centre located on level of 5 of the HMTS Phase 4. Both the RIC and the Exhibition Centre will be opened to HA staff and the general public. 6. The RIC consists of the following facilities (d) (e) The departmental library, with facilities for public access and research; The technical library; The publicity/ access to information counter, and photo and video archives; The staff learning centre, with access to HA Intranet and multi-media learning packages; and An electronic resource centre project, to connect the library catalogue system to the departmental intranet, and to provide library, technical, publicity and learning materials electronically to all departmental staff, and ultimately to make available the library catalogue and publicity materials to the public through the internet. 7. The architectural consultant, Leigh & Orange Ltd., was asked to carry out a feasibility study and a scheme design with detailed cost breakdown on RC is proposed at Annex A. It is estimated that the total construction cost is $18.40M. The breakdown is as follows-
4 - 4 - ($M) Construction Cost Consultant Fees Site Staff Cost ===== 8. As advised by the architectural consultant, Leigh & Orange Ltd., and the PQS, Davis Langdon & Seah Hong Kong Ltd., the RIC construction work could be carried out as a variation to the HMTS Phase 4 Main Contract and if instruction enclosing the full details of the revised scheme could be issued to the Contractor prior to the 1 August 1999, any time and associated cost claim which may arise would be minimized. REVISED CLIENT BRIEF 9. With the proposed RIC, the allocated area for HA facilities is proposed to be revised as below HA Facilities Latest Approved Client Brief (BC 34/97) Proposed Revision Net area in m 2 Net area in m 2 Office space for HQ staff Exhibition centre Mock up area (d) Departmental library (e) Storage Total (RIC)
5 - 5 - FITTING OUT WORKS FOR THE EXHIBITION CENTRE 10. The 920 m 2 Exhibition Centre is located on level 5 of HMTS Phase 4. It will replace the existing temporary HA Exhibition Centre located at the junction of Sheung Shing Street and Fat Kwong Street. 11. The Department proposes to appoint a specialist consultant to carry out the design and fitting out works of the Exhibition Centre after the completion of HMTS Phase 4 Main Contract in October It is recommended to allow a budget of $20.80M for the specialist fitting-out cost. 12. Detailed cost breakdown of the fitting out cost for Exhibition Centre is at Annex C. COMPUTER NETWORK INFRASTRUCTURE 13. The Department also proposes to set up a computer network infrastructure in HMTS Phase 4, which was not provided in current project scope. It is estimated that a total of $7.00M would be required for computer cabling works and network equipment to electronically link up the whole HMTS Phase 4 building with the existing HAHQ. Detailed cost breakdown is at Annex D. 14. The cabling works would be carried out during the construction period of HMTS Phase 4 whereas the network equipment will be provided after the completion of HMTS Phase 4. The provision of computer network infrastructure will facilitate the extensive use of information technology applications in the the office floors and the integrated RIC and Exhibition Centre. REVISED PROJECT BUDGET & CONTRACT SUM 15. A table indicating the revised Project Budget is attached at Sheet 1 of Annex E. The revised Project Budget is worked out to be $ M which exceeds the previous Approved Project Budget of $ M ( approved by BC paper no. BCT 97/98) by $46.20M or 4.89 %.
6 Detailed build-up of the revised Project Budget as compared with the Approved Project Budget is as follows- Contract/ Cost Item Cost based on Approved Project Budget ($M) Cost Based on Proposed Revised Project Budget ($M) Piling Building Fees & Others Total A table indicating the comparison between the Approved Project Budget and the revised Project Budget is at Sheet 2 of Annex E. The increase is mainly due to the following reason - $M Revision of Client Brief for the construction of RIC ( including consultant fees & site staff cost) Allowance for fitting out works for Exhibition Centre Provision of computer network infrastructure works (+) (+) (+) 7.00 Total (+) The revised Contract Sum is worked out to be $ M which exceeds the previous Approved Contract Sum of $ M (approved by BC Paper No. BCT 97/98) by $19.50M or 2.49%. It includes $16.50M construction cost for the proposed RIC and $3.00M cabling works for the computer network infrastructure, both of which are to be carried out in Main Contract of HMTS Phase 4.
7 - 7 - FUNDING 19. Based on the revised Project Budget, the estimated annual expenditure is as follows Analysis of cash Flow Funds in Approved Capital Budget $M Forecast Based on Revised Project Budget $M Variation - $M Actual Expenditure up to Budgeted Expenditure / (+) Forecast Expenditure (-) Post Total Cash Flow The additional expenditure required in 1999/00 and beyond will be adjusted at the next Capital Budget Submission to the Finance Committee. RECOMMENDATION 21. It is recommended that Members to approve Construction of the proposed RIC as shown in paragraph 7; The proposed Revised Client Brief as shown in paragraph 9; (d) (e) The proposed arrangement of fitting out works of the Exhibition Centre as shown in paragraph 10 to 12; The provision of computer network infrastructure as shown in paragraph 13 & 14; The revised Project Budget as shown in paragraph 15; and (f) The revised Contract Sum as shown in paragraph 18.
8 - 8 - DISCUSSION 22. At the next meeting of the Building Committee to be held on 22 July 1999, Members will be invited to consider the recommendation in paragraph 21 above File Ref. : HD(CM)KL17-4/DSN Date : 16 July 1999
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