ENHANCING ENHANCING INTEGRITYINTEGRITY

Best Practices in Best Practices in ConstructionConstruction

ENHANCING ENHANCING INTEGRITYINTEGRITY

Best Practices in Best Practices in ConstructionConstruction

ByByY.Bhg. Datuk Ir. Hamzah HasanY.Bhg. Datuk Ir. Hamzah HasanChief Executive,Chief Executive,Construction Industry Development Board Construction Industry Development Board MalaysiaMalaysia

22 April 200822 April 2008

GDP – 3.42% Acts as a

catalyst for and has multiplier effects to the economy

Provides employment to 800,000 workers

GDP – 3.42% Acts as a

catalyst for and has multiplier effects to the economy

Provides employment to 800,000 workers

Construction Sector Growth & Malaysian Economic Trend (Constant Price)For Year 1980 - 3Q 2007

7.38.9

6.7

17.3

14.6

10.3

-8.4

-14.0-11.8

15.1

21.1

16.2

10.6

-24.0

-4.4

4.7

-7.4

5.85.55.99.1

9.9

5.4

1.2-1.1

7.86.26.06.9

11.6

0.5

5.4 5.86.8

6.19.0 9.5 8.9 9.9 9.2 10.0 9.95.0

3.34.0 4.8

-0.51.2

0.52.3

-0.91.8

9.8

4.2

10.9 10.8

15.5

18.6

10.8

-1.8

2.83.03.2

4.0

3.54.85.25.45.05.04.6

3.3 3.5 3.7 3.8 3.8 4.0 4.4 4.7 4.8 4.0 3.6 3.3

3.93.8 3.7

3.2

3.4

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

Year

Gro

wth

(%)

GDP (%)

Construction Sector Growth (%)

Construction Contribution to GDP (%)

1980 - 2000 = Constant prices at year 19872001 - 3Q 2007 = Constant prices at year 2000

Construction Sector Growth & Malaysian Economic Trend (Constant Price)For Year 1980 - 3Q 2007

7.38.9

6.7

17.3

14.6

10.3

-8.4

-14.0-11.8

15.1

21.1

16.2

10.6

-24.0

-4.4

4.7

-7.4

5.85.55.99.1

9.9

5.4

1.2-1.1

7.86.26.06.9

11.6

0.5

5.4 5.86.8

6.19.0 9.5 8.9 9.9 9.2 10.0 9.95.0

3.34.0 4.8

-0.51.2

0.52.3

-0.91.8

9.8

4.2

10.9 10.8

15.5

18.6

10.8

-1.8

2.83.03.2

4.0

3.54.85.25.45.05.04.6

3.3 3.5 3.7 3.8 3.8 4.0 4.4 4.7 4.8 4.0 3.6 3.3

3.93.8 3.7

3.2

3.4

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

Year

Gro

wth

(%)

GDP (%)

Construction Sector Growth (%)

Construction Contribution to GDP (%)

1980 - 2000 = Constant prices at year 19872001 - 3Q 2007 = Constant prices at year 2000

THE MALAYSIAN THE MALAYSIAN CONSTRUCTION INDUSTRYCONSTRUCTION INDUSTRY

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Challenges FacingThe Malaysian Construction Industry

Challenges FacingThe Malaysian Construction Industry

Low productivity

Shoddy workmanship

Substandard materials

High fatality rates at work sites

Low productivity

Shoddy workmanship

Substandard materials

High fatality rates at work sitesMake Us Your Partner

2

Engagement of illegal & unskilled foreign workers

Selling of construction materials beyond the government controlled price

Issue of non-payment

Engagement of illegal & unskilled foreign workers

Selling of construction materials beyond the government controlled price

Issue of non-payment

Challenges FacingThe Malaysian Construction Industry (Cont’d)

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Construction Industry Development Board of Malaysia

(CIDB)

Construction Industry Development Board of Malaysia

(CIDB)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

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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4

Construction Industry Master Plan(CIMP)

Construction Industry Master Plan(CIMP)

A 10 year blueprint for a holistic development of the industry that encompasses:-

A 10 year blueprint for a holistic development of the industry that encompasses:-

Productivity

Efficiency Quality Safety & Health Environment

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Human Resources Research & DevelopmentSustainability Information technology Image & professionalism

A 10 year blueprint for a holistic development of the industry that encompasses:-

A 10 year blueprint for a holistic development of the industry that encompasses:-

Construction Industry Master Plan(CIMP)

Construction Industry Master Plan(CIMP)

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Best PracticesBest PracticesAreas covered:-

Training & accreditation of contractors & construction workers

Upgrading of the supervisory & project management

Health & safety, environmental issues & sustainable construction

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

Training & Accreditation of Contractors

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)

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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Export of ServicesExport of Services

Malaysian contractors are currently active in 38 countries

Registry for contractors venturing abroad

Monitoring of performance

Malaysian contractors are currently active in 38 countries

Registry for contractors venturing abroad

Monitoring of performance

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Issues On PaymentIssues On Payment

Issues of late and non-payments

Construction Industry Payment & Adjudication Act

Issues of late and non-payments

Construction Industry Payment & Adjudication Act

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Enhancement Of IntegrityEnhancement Of Integrity

Construction Industry Integrity Committee

One day awareness course on integrity as the pre-requisite for the renewal of contractor’s license

Construction Industry Integrity Committee

One day awareness course on integrity as the pre-requisite for the renewal of contractor’s license

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Code of Ethics for ContractorCode 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

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

CODE OF ETHICS

CONTRACTOR

Lembaga Pembangunan Industri Pembinaan Malaysia Tingkat 7, Grand Seasons Avenue,

72 Jalan Pahang, 53000 Kuala Lumpur

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for

Six (6) PrinciplesSix (6) Principles

Principles 1 – Honesty in carrying out Responsibilities

Principles 2 – Compliance with the Laws & Regulations

Principles 3 – Respect for the Individual &

Community

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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Six (6) Principles (Cont’d)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

Principles 4 – Importance of Quality, Skills & Standards

Principles 5 – Importance of Safety, Health & Welfare

Principles 6 – Importance of Environmental

Preservation

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Training & Accreditation of Construction Workers

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

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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Upgrading Supervisory & Project Management Skills

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.

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

Occupational Safety & Health in Construction

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

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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Sustainable ConstructionAnd The Environmental

Sustainable ConstructionAnd 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)

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 DeliveryImprovement of the Delivery

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.

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’)Improvement of the Delivery (Cont’d’)

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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ConclusionConclusionConclusionConclusion

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

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 YOUTHANK YOU

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http://www.cidb.gov.my