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| I | Introduction
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| Background | 1 - 2
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| Terms of reference of the select committee | 2 - 3
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| Membership of the Select Committee | 3
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| Areas of study and work plan | 4
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| Invitation of public views | 5
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| Practice and procedure | 5 - 9
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| Summons of witnesses | 10
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| The First Report | 10 - 12
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| II | Organizational structure for the planning and production of public housing units
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| Introduction | 13
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| Provision of public housing before the establishment of the present Housing Authority | 13
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| Establishment of the present Housing Authority | 14 - 15
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| Composition of the Housing Authority | 16
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| Committee structure of the Housing Authority | 17 - 21
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| Housing Department | 22 - 25
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| Housing Bureau | 25 - 26
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| Interface among the various authorities involved in the planning and production of public housing | 26 - 29
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| III | Working mechanism for the planning and production of public housing units
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| Introduction | 30
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| Public housing demand and public housing production targets | 30 - 32
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| Causes for the production peak | 33 - 36
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| Measures to deal with production peak | 36 - 40
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| Development process of public housing | 40 - 51
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| Quality control and assurance | 51 - 54
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| IV | Mechanism for the production of public housing units subject to the Buildings Ordinance
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| Introduction | 55
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| Building works subject to the Buildings Ordinance | 55 - 58
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| Role and working mechanism of Housing Society for the planning and production of public housing units | 58 - 64
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| Comparison of the working mechanisms of Housing Society and Housing Authority for the production of public housing | 64 - 66
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| V | Incident No. 1 - Shatin Area 14B Phase 2
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| Introduction | 67 - 68
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| Management of the project | 68 - 69
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| Planning and design | 69 - 71
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| Tendering | 71 - 74
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| Subletting | 74 - 76
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| The Contractor's Project Team | 76 - 77
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| Construction | 77 - 109
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| Quality assurance and quality control | 109 - 122
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| Observations | 123 - 133
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| VI | Incident No. 2 - Shek Yam Estate Phase 2
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| Introduction | 134 - 135
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| Planning and design | 135
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| Tendering | 135 - 136
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| Management of the project | 136 - 137
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| Construction | 137 - 144
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| Observations | 144 - 150
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| VII | Incident No. 3 - Tung Chung Area 30 Phase 3
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| Introduction | 151 - 152
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| Planning and design | 152
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| Tendering | 152 - 153
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| Management of the project | 153 - 154
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| Construction | 154 - 162
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| Observations | 163 - 168
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| VIII | General observations
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| Introduction | 169
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| Planning process | 169 - 172
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| Procurement policy | 172 - 174
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| Human resources policy | 175 - 177
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| Project management | 178 - 182
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| Regulation of practices and sanctions | 182 - 183
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| Construction culture | 183 - 185
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| Organizational structure | 185 - 188
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| IX | Conclusions and recommendations
| Introduction | 189
| Institutional background | 189 - 190
| Unrealistic housing production target for 2000/01 | 190 - 191
| Onerous executive responsibilities of Building Committee | 191 - 192
| Inadequate performance of the role of Housing Authority as regulator of the construction of public housing | 193
| Ineffective staff management and deployment of human resources | 194
| Ineffective project management | 195
| THE THREE INCIDENTS
| (1) The Yuen Chau Kok project | 196 - 199
| (2) The Shek Yam project | 199 - 201
| (3) The Tung Chung project | 201 - 203
| RECOMMENDATIONS | 203 - 214
| Acknowledgement | 215
| Signatures of Members of the Select Committee | 216 - 217
| Abbreviations | 221 - 226
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| Appendices | Page
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| Appendix I (1) | Work Plan of the Select Committee on Building Problems of Public Housing Units | 229 - 230
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| Appendix I (2) | List of Parties Invited by the Select Committee to Give Views | 231
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| Appendix I (3) | List of Parties Submitted Written Views to the Select Committee | 232
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| Appendix I (4) | Practice and Procedure of the Select Committee | 233 - 240
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| Appendix I (5) | List of Witnesses Appearing before the Select Committee to Give Evidence | 241 - 247
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| Appendix II (1) | Main Duties of Housing Authority (Since 1995) | 248
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| Appendix II (2) | Terms of Reference of Housing Authority Committees (As at mid-1997) | 249 - 257
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| Appendix II (3) | Flow Chart of Public Housing Production - In-house Projects | 258 - 259
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| Appendix II (4) | Flow Chart of Public Housing Production - Out-sourced Projects | 260 - 261
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| Appendix II (5) | Organizational Structure of Development & Construction Branch (Position as at 15 April 1997) | 262
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| Appendix II (6) | Organizational Structure of Development & Construction Branch (Position as at 24 November 1997) | 263
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| Appendix II (7) | Organizational Structure of Development & Construction Branch (Position as at 1 March 1999) | 264
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| Appendix III (1) | Production Forecasts in Housing Authority's Public Housing Development Programme (Showing the Quarterly Positions from September 1995 to December 1997) | 265
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| Appendix III (2) | Public Housing Production by Housing Authority for the Period from 1987/88 to 2000/01 | 266
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| Appendix III (3) | Breakdown of the 686 Posts Created in Housing Department from 1995/96 to 2000/01 | 267
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| Appendix III (4) | Breakdown of the 245 Posts Created in Works-related Branches from 1995/96 to 1996/97 | 268
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| Appendix III (5) | Brief History of the Issue of Consultant Management Manual (BCM) and Related Guidance Notes | 269
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| Appendix III (6) | Standard Lead Time for Standard Domestic Blocks | 270
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| Appendix III (7) | Table 1 - Workload of Architects Handling Active In-house New Works Projects from 1995/96 to 2000/01 Table 2 - Workload of Structural Engineers Handling Active In-house New Works Projects from 1995/96 to 2000/01 | 271 - 272
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| Appendix III (8) | Percentage and Number of In-house Piling Sites with Resident Engineer from 1994/95 to 1999/2000 | 273
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| Appendix III (9) | Entry Qualifications for Inspector of Works Grade and Works Supervisor (Civil) in Housing Department | 274 - 275
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| Appendix III (10) | Entry Qualifications for Clerk of Works Grade and Works Supervisor (Construction) in Housing Department | 276 - 277
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| Appendix III (11) | Workload of Site Staff for Building Contracts (from 1996 to 2000) | 278
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| Appendix III (12) | Workload of Site Staff for Piling Contracts (from 1996 to 2000) | 279
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| Appendix III (13) | Implementation Progress of the 50 Quality Housing Initiatives | 280 - 287
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| Appendix IV (1) | General Approval & Consent Procedures under the Buildings Ordinance | 288
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| Appendix IV (2) | Hong Kong Housing Society - Flat Production from 1995/96 to 2000/01 | 289
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| Appendix IV (3) | Governance Structure of the Hong Kong Housing Society since the Annual General Meeting held on 19 December 2000 | 290
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| Appendix IV (4) | Management Structure of the Hong Kong Housing Society (as at May 2002) | 291
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| Appendix IV (5) | Hong Kong Housing Society's Main Stages in Production of Housing Units | 292
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| Appendix V (1) | Shatin Area 14B Phase 2 Site Layout Plan | 293
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| Appendix V (2) | Chronology of Important Activities Relating to Shatin Area 14B Phase 2 Piling Contract | 294 - 298
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| Appendix V (3) | Organization Chart Showing the Key Personnel Responsible for Shatin Area 14B Phase 2 Piling Contract | 299
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| Appendix V (4) | Organization Chart Showing the Key Personnel of Zen Pacific Civil Contractors Ltd. and Hui Hon Contractors Ltd. for Shatin Area 14B Phase 2 Piling Contract | 300
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| Appendix V (5) | Major Steps in Installing Large Diameter Bored Piles | 301
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| Appendix V (6) | Summary Records of Rockhead Levels | 302
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| Appendix V (7) | Summary of Inspection Time of Rockhead Levels, Founding Levels and Formed Bell-outs for Blocks D and E | 303
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| Appendix V (8) | Summary of Inspection Records on Bell-outs | 304
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| Appendix V (9) | Summary of Concreting Records for Blocks D and E | 305
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| Appendix V (10) | Summary of Results of Sonic Coring Tests for Blocks D and E Based on the Reports Submitted by Fugro Geotechnical Services (HK) Ltd | 306 - 307
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| Appendix V (11) | Summary of Chi Shing's Concrete Coring Invoices | 308
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| Appendix VI (1) | Chronology of Important Activities Relating to Stainless Steel Cladding in Shek Yam Estate Phase 2 Building Contract | 309 - 312
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| Appendix VI (2) | Organization Chart Showing the Key Personnel Responsible for Shek Yam Estate Phase 2 Building Contract | 313
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| Appendix VII (1) | Chronology of Important Activities Relating to Steel Reinforcement in Tung Chung Area 30 Phase 3 Building Contract | 314 - 316
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| Appendix VII (2) | Organization Chart Showing the Key Personnel Responsible for Tung Chung Area 30 Phase 3 Building Contract | 317
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| Appendix VII (3) | Site Plan Showing the Locations of the Steel Yards | 318
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| Appendix VII (4) | Particulars of Reinforcement Steel Bars Delivered to Site | 319
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| Appendix VII (5) | Date of Delivery and Testing of Reinforcement Steel Bars | 320
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| Appendix VII (6) | Date of Issuance of Test Reports on Reinforcement Steel Bars | 321
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| Appendix VIII (1) | Percentage of "Straightforward Papers" Requested for Discussion by the Building Committee | 322
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| Appendix VIII (2) | Key Changes which Took Place in the Housing Department at the Time of the Four Incidents | 323
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| Lists of Written Evidence | 327 - 366
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| Minutes of Proceedings | 369 - 391 | |
| Date | Public Hearings | Witness | Volume
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| 21 April 2001 | 1 | Mr John Anthony MILLER Director of Housing | IIA
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| 24 April 2001 | 2 | Mr John Anthony MILLER Director of Housing | IIA
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| 28 April 2001 | 3 | Mr John Anthony MILLER Director of Housing | IIA
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| 5 May 2001 | 4 | Dr Hon Rosanna WONG Yick-ming Former Chairman Housing Authority | IIA
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| 8 May 2001 | 5 | Dr Hon Rosanna WONG Yick-ming Former Chairman Housing Authority | IIA
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| 12 May 2001 | 6 | Mr Dominic WONG Shing-wah Secretary for Housing | IIA
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| 19 May 2001 | 7 | Mr Dominic WONG Shing-wah Secretary for Housing | IIA
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| 22 May 2001 | 8 | Mr Edward HO Sing-tin Former Chairman Building Committee of the Housing Authority (1987/88 to 1995/96) | IIA
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| 26 May 2001 | 9 | Mr Daniel LAM Chun Former Chairman Building Committee of the Housing Authority (1996/97 to 2000/01) | IIA
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| 5 June 2001 | 10 | Mrs Fanny LAW FAN Chiu-fun Former Deputy Director/Housing Management and Works Housing Department | IIA
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| 9 June 2001 | 11 | Mr Daniel LAM Chun Former Chairman Building Committee of the Housing Authority (1996/97 to 2000/01) | IIA
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| 12 June 2001 | 12 | Mr WONG Chin-tao Mr CHAU Wing-sing Representatives of the Hong Kong Housing Department Structural Engineers Association | IIB
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| 16 June 2001 | 13 | Part I Mr WONG Chin-tao Mr CHAU Wing-sing Representatives of the Hong Kong Housing Department Structural Engineers Association | IIB
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| Part II Mrs Rosa HO LOK So-fun Mr TAM Kai-kwong Representatives of the Hong Kong Housing Department Architects Association | IIB
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| 19 June 2001 | 14 |
Part I Mrs Rosa HO LOK So-fun Mr TAM Kai-kwong Representatives of the Hong Kong Housing Department Architects Association | IIB
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| Part II Mr Stephen POON Sing-chi Former Deputy Director/Works Housing Department | IIB
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| 23 June 2001 | 15 | Mr YUEN Tze-chu Business Director/Commercial and Business Development Housing Department Mr Stephen POON Sing-chi Former Deputy Director/Works Housing Department | IIB
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| 26 June 2001 | 16 | Mr Stephen POON Sing-chi Former Deputy Director/Works Housing Department | IIB
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| 30 June 2001 | 17 | Mr YUEN Tze-chu Business Director/Commercial and Business Development Housing Department | IIB
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| 3 July 2001 | 18 | Mr YUEN Tze-chu Business Director/Commercial and Business Development Housing Department | IIB
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| 7 July 2001 | 19 | Mr YUEN Tze-chu Business Director/Commercial and Business Development Housing Department | IIB
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| The 20th to 41st hearings are in relation to Tin Shui Wai Area 31 Phase 1 project which is not covered by the First Report.
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| 12 January 2002 | 42 | Part I Mr YUEN Tze-chu Business Director/Development Housing Department | IIC
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| Part II Mr David LEE Sai-cheung Former Project Director/Works Housing Department | IIC
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| 15 January 2002 | 43 | Part I Ms Cynthia SZETO Kit-fong Project Quantity Surveyor appointed by the Housing Department | IIC
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| Part II Mr Ralph CHUN Yiu-man Project Geotechnical Engineer for Shatin Area 14B Phase 2 project | IIC
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| 19 January 2002 | 44 | Mr HO Shu-kee Contract Manager for Shatin Area 14B Phase 2 project | IIC
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| 22 January 2002 | 45 | Mr Francis WONG Chi-chiu Assistant Contract Manager for Shatin Area 14B Phase 2 project | IIC
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| The 46th hearing was held in camera.
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| 29 January 2002 | 47 | Part I Mr TSE Ho-kwan Senior Clerk of Works for Shatin Area 14B Phase 2 project | IIC
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| Part II Mr SUN Fu-sang Senior Clerk of Works for Shatin Area 14B Phase 2 project | IIC
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| 2 February 2002 | 48 | Mr CHAN Kui-chiu Project Clerk of Works for Shatin Area 14B Phase 2 project | IID
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| 5 February 2002 | 49 | Part I Mr LI Kwok-sing Assistant Clerk of Works/Project Clerk of Works for Shatin Area 14B Phase 2 project | IID
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| Part II Mr WONG Kai-wah Assistant Clerk of Works for Shatin Area 14B Phase 2 project | IID
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| 9 February 2002 | 50 | Mr CHAN Kui-chiu Project Clerk of Works for Shatin Area 14B Phase 2 project | IID
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| 19 February 2002 | 51 | Part I Mr TANG Siu-tat Works Supervisor I for Shatin Area 14B Phase 2 project | IID
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| Part II Mr SIT Man-wai Works Supervisor II for Shatin Area 14B Phase 2 project | IID
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| 23 February 2002 | 52 | Mr Derek ZEN Wei-peu Executive Director Zen Pacific Civil Contractors Ltd | IIE
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| 26 February 2002 | 53 | Part I Mr Tommy LEUNG Wah-hing Quality Control Engineer for Shatin Area 14B Phase 2 project | IIE
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| Part II Mr SIT Man-wai Works Supervisor II for Shatin Area 14B Phase 2 project | IIE
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| The 54th hearing was held in camera.
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| 5 March 2002 | 55 | Part I Mr CHAU Muk-kan Representative of Chi Shing Drilling Engineering Co Ltd | IIE
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| Part II Mr WONG Chi-ming Representative of C M Wong & Associates Ltd | IIE
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| 9 March 2002 | 56 | Mr LI Kwok-sing Assistant Clerk of Works/ Project Clerk of Works for Shatin Area 14B Phase 2 project | IIE
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| The 57th hearing was held in camera.
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| 13 April 2002 | 58 | Part I Mr MAN Chai-wah Assistant General Manager Hung Fung Engineering Limited | IIF
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| Part II Mr CHENG Tak-wai Assistant Project Manager in the Purchase Department of Hung Fung Engineering Limited | IIF
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| 16 April 2002 | 59 | Part I Mr AU Chun-kuen Site Agent China State Construction Engineering Corporation | IIF
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| Part II Ms Hanna HSU Yu-ming Representative of Dennis Lau & Ng Chun Man Architects & Engineers (HK) Ltd | IIF
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| 20 April 2002 | 60 | Mr KU Chun-lung Project Clerk of Works for Shek Yam Estate Phase 2 project | IIF
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| 23 April 2002 | 61 | Mr CHAN Nap-ming Project Manager for Shek Yam Estate Phase 2 project Mr CHEUNG Kun-sing Deputy Project Manager for Shek Yam Estate Phase 2 project | IIF
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| The 62nd hearing was held in camera.
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| 4 May 2002 | 63 | Mr HA Siu-wah Project Clerk of Works for Tung Chung Area 30 Phase 3 project | IIF
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| 7 May 2002 | 64 | Part I Mr CHAN Siu-tack Chief Structural Engineer for Tung Chung Area 30 Phase 3 project Mr LING Man-kwong Project Structural Engineer for Tung Chung Area 30 Phase 3 project | IIF
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| Part II Ms Hanna HSU Yu-ming Representative of Dennis Lau & Ng Chun Man Architects & Engineers (HK) Ltd | IIF
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| 11 May 2002 | 65 | Mr Victor SO Hing-woh Mr Francis LAW Hoo-yan Mr Nicolas YEUNG Shu-yan Representatives of the Hong Kong Housing Society | IIG
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| 14 May 2002 | 66 | Mr CHEUNG Hau-wai Mr MO Kim-ming Mr CHEUNG Kwok-ming Representatives of the Buildings Department | IIG
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| 18 May 2002 | 67 | Part I Mr Ian BUTLER Mr Bosco HO Hin-ngai Mr Dominic LAM Kwong-ki Representatives of The Association of Architectural Practices Ltd | IIG
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| Part II Mr Barry WILL Mr WONG Wah-sang Representatives of The Hong Kong Institute of Architects | IIG
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| Part III Mr Peter BERRY | IIG
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| 25 May 2002 | 68 | Mr TAM Lan-po Subcontractor of steel fixing for Tung Chung Area 30 Phase 3 building works | IIG
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| 28 May 2002 | 69 | Mr John Anthony MILLER Director of Housing Ms Ada FUNG Yin-suen Assistant Director/Quality Housing Department | IIG
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| The 70th hearing is in relation to Tin Shui Wai Area 31 Phase 1 project which is not covered by the First Report. | |||