Chapter 2
Overture
Overture
In March 2009, Contractor S was awarded a five-year term contract by the Highways Department for the management and maintenance of roads (excluding highways) in Kowloon East District, including Kwun Tong, Wong Tai Sin, Kowloon City, Kowloon Bay and Hung Hom, for the period between 1 April 2009 and 31 March 2014 at an estimated contract sum of HK$451 million (the First Term Contract).
In February 2014, Contractor S secured another four-year term contract covering the same district from the Highways Department for the period between 1 April 2014 and 31 March 2018 at an estimated contract sum of HK$342 million (the Second Term Contract).
For the First Term Contract, Contractor S subcontracted the road works in relation to the provision of labour and materials in Kwun Tong District to Company A which contracted out the same to Company B, and the latter further engaged Company D as its subcontractor. On 27 April 2009, the Highways Department approved Contractor S’s appointment of D2 as its site agent for the road works in Kwun Tong District.
For the Second Term Contract, Contractor S subcontracted the road works in relation to the provision of labour and materials in Kwun Tong and Wong Tai Sin Districts to Company A which further subcontracted the same to Company C. On 27 November 2014, Company D replaced Company C as the supplier of labour and materials in Kwun Tong and Wong Tai Sin Districts.
Contractor S, a civil engineering company, was awarded respectively a five-year term contract in March 2009 and a four-year term contract in February 2014 by the Highways Department.
First Term Contract
For the period between 1 April 2009 and 31 March 2014 at an estimated contract sum of HK$451 million
Subcontracted
- Contractor S
- Company A
- Company B
- Company D
Second Term Contract
For the period between 1 April 2014 and 31 March 2018 at an estimated contract sum of HK$342 million
Subcontracted
- Contractor S
- Company A
- Company C
(subsequently replaced by Company D)
Term contracts
The Highways Department contracted out the maintenance works of public roads, slopes, highways and highway structures to various contractors by way of term contracts. Under a term contract, maintenance or minor improvement works orders were issued to the term contractor when necessary.
Responsibilities and authorities of key personnel
In Kowloon East district, for example, maintenance works were overseen by a Senior Maintenance Engineer. Each district is divided into areas, each of which was headed by a Chief Technical Officer or Maintenance Engineer. They supervised Maintenance Inspectors of Works and Maintenance Assistant Inspectors of Works who conducted regular site inspections and assessed the need for carrying out maintenance works.
Districta Senior Maintenance Engineer
Each areaa Chief Technical Officer or Maintenance Engineer
Maintenance Inspectors of Works and Maintenance Assistant Inspectors of Works
In Highways Department, "Maintenance Vote" for routine maintenance works and "Block Vote" for minor capital projects were the two funding sources in relation to highway maintenance works.
Chief Technical Officer (i.e. the rank of D1) and Maintenance Engineer of the Highways Department were authorised to approve works orders up to HK$600,000 or below. For work orders above HK$600,000 and up to HK$1.5 million, approval from Senior Maintenance Engineer was required, while those above HK$1,500,000 and up to HK$3 million must be approved by Chief Engineer via Senior Maintenance Engineer.
For works orders charged to the "Block Vote", applications and supporting documents setting out the project plans must be submitted to Chief Engineer for approval by Chief Technical Officer via Senior Maintenance Engineer.