Development chief Bernadette Linn meets construction sector, forecasts rebound in workloads

Secretary for Development Bernadette Linn Hon-ho led her bureau's team in a meeting with representatives from the Hong Kong Construction Association on Monday, discussing industry workload trends, the business environment, and contract management.

Ning stated that although private sector project volumes have declined in recent years, the overall construction workload has been maintained at an annual level of HK$280 billion to HK$290 billion, driven by an increase in public works.

To ensure industry stability, the government has set aside an additional HK$30 billion for the next two to three years on top of the planned annual capital works expenditure of HK$120 billion for the next five years. She expressed confidence that as the market gradually recovers, overall project numbers are expected to rebound, improving the business environment.

Regarding contract management, Ning said the Development Bureau plans to fully implement the "New Engineering Contract" model in all government capital works projects within this year. This model, introduced in 2009, has proven effective in enhancing project management efficiency and cost-effectiveness.

To support small and medium-sized contractors, the government is implementing measures such as splitting large projects into smaller ones to increase their bidding opportunities. A bonus point system in large project tenders also encourages large contractors to form joint ventures with smaller firms, promoting collaboration and knowledge transfer.

Linn thanked the industry for its feedback and reaffirmed the bureau's commitment to maintaining close communication to navigate market changes and promote the sector's sustainable development.