Engineering, Construction and Architectural Management

The pursuit of quality in Hong Kong construction

MOHAN M. KUMARASWAMY

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MOHAN M. KUMARASWAMY, (1996),"The pursuit of quality in Hong Kong construction", Engineering,
Construction and Architectural Management, Vol. 3 Iss 4 pp. 289 - 306
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Engineering, Construction and Architectural Management 1996 3 | 4, 289-306

The pursuit of quality in Hong Kong

construction
MOHAN M. KUMARASWAMY
Department of Civil and Structural Engineering, The University of Hong Kong, Pokfulam Road,
Hong Kong

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Paper submitted 13 February 1996; accepted for publication 22 May 1996;

discussion open until June 1997

Abstract Construction organizations have responded in different ways to the increasing

demands for quality. An interim assessment of the benefits and costs of different
approaches is useful in determining future directions for organizations that have already, or
are about to, set up construction quality management systems. Evidence from a series of
surveys in Hong Kong indicates that long term strategies are needed, for example targeting
'total quality management' or comprehensive quality management systems, with ISO
9000 certification being only one step along this route. Specific issues to be addressed are
identified, such as the development of construction-specific guidelines and the integration
of safety and dispute avoidance systems in a comprehensive quality management system.
A framework is also proposed to assist in selecting the optimal quality management route
for a given construction organization. Lessons learned from Hong Kong and elsewhere can
be incorporated in this framework, and will help separate rhetoric from reality in rationalizing
the quality management strategies of construction organizations.
Keywords construction, Hong Kong, ISO 9000, quality systems, TQM

A I M AND OBJECTIVES
The objectives of this paper are:
1 T o broadly trace the general development and current status of quality management systems, with particular reference to the construction industry in
Hong Kong
2 To assess the present perceptions of various sub-sectors of the Hong Kong
construction industry as to the strengths and weaknesses of different approaches to quality management such as ISO 9000 certification or 'total quality
management'
3 T o incorporate such findings, so as to strengthen the strengths and weaken the
weaknesses in formulating a broad strategy that can be useful to organizations in
search of an appropriate route to quality
4 T o facilitate comparisons with other countries and adaptations that would be
useful to construction organizations therein.

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The aim of the underlying research is to develop a range of strategies and

corresponding frameworks from which an organization could choose one
appropriate to its needs in developing a quality management system. It is envisaged that such a range of choices would facilitate more informed judgements by
organizations on their optimal long term strategies, while minimising both wasted
or duplicated efforts (inputs) and shortfalls in expected results (outputs).
INTERNATIONAL INITIATIVES

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Historical background
The quest for quality in general industry has passed through many overlapping
phases. Lee (1995) classified these as
1 The 'workmanship' era before 1900
2 The 'supervision' phase after 1900
3 The inspection era from 1920
4 The statistical process control introduced by Shewhart, the concept of quality
and quality control popularized by Deming & Juran, and of total quality control
by Feigenbaum from 1930-1950
5 Ishikawa's statistical methods and quality circles after 1960
6 Crosby's 'do it right first time' and 'zero defects' approaches after 1970
7 BS 5750 and ISO 9000 from the 1970s and 1980s, respectively.
From time to time as needed, the construction industry in particular has
absorbed elements of this evolution of quality principles and practice. For
example, the pride in their work of construction 'craftsmen' and the self-policing
of their 'trades' perhaps reduced the need for elaborate over-riding organizational
systems even after the aforementioned 'workmanship' era in general industry.
However, the growing dominance of large construction organizations and the
emphasis on speed and economy, led to the demands for second-party supervision
and inspection by consultants. The unique project-type character of construction
largely precluded the statistical process control type quality management techniques more suited for batch or process production in other industries.
The globalization of enterprises, markets and technologies and rising international aspirations have ensured that a high level of quality in products and services
is no longer a luxury. The gradual evolution of quality concepts, as traced in the
first paragraph, has now climaxed in a revolution characterized by demands for
independent third party certification and comprehensive quality systems.
'Quality' itself has been defined broadly in ISO 8402 as 'the totality of features
and characteristics of a product or service that bear on its ability to satisfy stated or
implied needs'. Other definitions, for example of quality management, quality
assurance, quality system, quality plan, quality audit, quality surveillance and
quality control, are easily accessible through the ISO 9000 or related documents
and thus will not be reproduced here.
BS 5750 of 1979 was the forerunner and model for ISO 9000 launched in 1987.
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Quality in Hong Kong construction

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The emphasis on management practice and generalized systems intended to cover

different activities, distinguished ISO 9000 from other ISO standards. In essence,
the quality systems envisaged that 'you' had to 'say what you do', 'do what you
say', 'record what you did' and 'monitor and evaluate'.
More than 70 countries have officially adopted the ISO 9000 series of standards
as their national quality system standards, apart from countries like the UK and
Australia which have their own standards very similar to ISO 9000. Minor
modifications have been made to the ISO 9000 set of standards, in the 1994
edition (Kam & Tang 1995).
However, what appears important at the current 'crossroads' of the quality
revolution, both in general and in the construction industry, is to apply lessons
learned from recent experiences, when formulating strategies for the near and
long-term future.
The current status - an overview
The 'quality revolution' has spawned sets of experts, 'pseudo-experts' and less;
the use and abuse of a quality vocabulary, which at times degenerates into mere
'lip service' or 'buzz words'; and the mounting of the 'quality bandwagon' for its
own sake. Amidst such a proliferation of real and rhetorical confusing signals,
many questions arise as to the depth and breadth of quality systems developed or
to be developed, in any organization.
The ISO 9000 provides a broad but general framework and a standard vocabulary, both of which are useful. According to an international survey (ISO 9000
Forum 1995), 70 517 ISO 9000 certificates had been issued in 76 countries up to
the end of June 1994, including 23971 after September 1993, signifying the
rapidly increasing needs.
However, general third party certification of systems is increasingly recognized
as merely one aspect of the necessary quality systems, whether in general industry
or in capital projects (Anderson 1995). A strong case for total quality management
(TQM) in construction projects was made by Hellard (1993). T Q M has been
clearly distinguished from Quality Assurance in developing a system for total
quality in construction (European Construction Institute 1993a). The European
Construction Institute (1993b) also formulated a matrix for measuring the progress towards a T Q M goal. In the USA, the Quality Measurements task force of
the Construction Industry Institute developed a quality measurement database
incorporating examples of 'best practice' and a 'quality measurement matrix'
(Stevens et al. 1994). The Associated General Contractors of America (1992)
advocated ' T Q M in construction' for its members as the only way to remain
competitive in national and international construction and engineering markets.
Other countries are in different stages of development in terms of client demand
(pull-factors) and industry push-factors, as to the type of quality systems required.
For example, the initial emphasis on ISO 9000 certification is still evident in
countries like India (Taneja 1994), Singapore (CIDB 1995) and in Hong Kong
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(to be discussed in the next section). While this is apparently so in Egypt as well,
an example was cited (when interviewing an Egyptian quality consultant) of a
large contractor who consciously shifted efforts initially aimed at ISO 9000 certification, to a focus on TQM. Similarly in Singapore the need to integrate ISO
9000 with T Q M has been noted (Liao et al. 1995). In the USA the interactions
and possible overlaps of re-engineering and T Q M were examined by Fallah and
Weinman (1995), their conclusions finally justifying the juxtaposition of these
techniques.
Meanwhile quality assurance principles and practice continue to be upgraded
based on the growing body of experience. For example, the 1994 edition of ISO
9000 incorporates new requirements for quality planning, design verification and
validation, in the case of design and construction.
There is evidently much to be learned from the experiences of other countries
and organizations in the development of quality systems for construction
scenarios, although there is no one universal solution.

QUALITY INITIATIVES IN HONG KONG

Background
That Hong Kong has heeded international imperatives towards quality management systems is not surprising, given the close links with the UK and indeed with
the international industry. The high standard of living and advanced stage of
development may have in fact provided further momentum in the push for quality.
The Hong Kong Quality Assurance Agency (HKQAA) was established by the
Hong Kong government in 1989 and has been in the forefront of such developments, in training, information dissemination and in providing services for
independent third party audits and certification. The Quality Services Division of
the Hong Kong Industry Department also provides assistance and updates, such
as the Quality Quest newsletter (Industry Department 1994). Many other bodies,
such as the Institute of Quality Assurance, other independent certification bodies,
and a growing body of consultants, contribute to the development of quality
systems in Hong Kong. Particular initiatives emerged from the construction
sector itself from the late 1980s. The Hong Kong Housing Authority was a
pioneer in this respect, as suggested by the slogan 'Quality starts with Housing'
(Chan 1993). It announced in 1989 that both the Construction Branch of the
Housing Department and its contractors and suppliers would soon be certified to
ISO 9000. Deadlines were set by the Housing Authority for ISO 9000 certification: in 1992 for its ready mix concrete suppliers; on 31 March 1993 for its
building contractors; and in 1994 for certain categories of nominated subcontractors (Byrne 1995).
The Hong Kong government itself launched a three year quality awareness
campaign in March 1990 (Byrne 1995), after which (in March 1994) the Secretary
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Quality in Hong Kong construction

for Works announced a timetable for quality assurance in all public works
construction that required:
1 Concrete suppliers to be registered under the Quality Scheme for the
Production and Supply of Concrete by July 1994
2 Engineering and associated consultants for agreements over HK$10 million
(about UK0.81 million) and all architectural consultants to be certified to ISO
9001 by April 1996
3 All contractors in the highest grade and certain categories of specialist contractors to be certified to ISO 9002 by October 1996.
In addition, the Hong Kong Housing Authority has designed a comprehensive
performance assessment scoring system (PASS) which enables them to evaluate
the performance of their contractors regularly on ongoing jobs, and to provide
more tendering opportunities to those contractors who achieve higher PASS
scores (Hong Kong Housing Authority 1994). In comparison, the construction
quality assessment system (CONQUAS) in Singapore confers a price advantage
of up to a maximum of 5% on contractors with higher CONQUAS scores in their
recent projects (Construction Industry Development Board 1995).
These examples indicate the importance of the quality assessment elements
beyond ISO 9000 itself. In fact, PASS scores are based on an assessment of the
contractor's outputs, as well as their inputs in the construction process, combined
in a 3:1 ratio; and the majority of respondents to one question in a recent survey
(Wong 1995) thought that PASS inspections were more 'difficult' than ISO 9000
audits.
Present status - an overview
The following are examples from different categories of the numbers of companies
in the Hong Kong construction industry certified to ISO 9000 as of 5 December
1994, as obtained from the HKQAA:
Building new works = 50
Building maintenance = 42
Civil engineering new works = 6
Civil engineering maintenance = 1
Piling = 8
Civil and structural engineering consultancy = 2
Architectural consultancy = 1
Quantity surveying consultancy = 2
Concrete products = 45
Construction material supplier = 2.
It should be noted that
1 All categories are not included in the foregoing summary, e.g. lift installation
contractors
2 It is possible that the same company may be certified in more than one category
3 It appears that certification efforts have been greater in categories where clients
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such as the Hong Kong Housing Authority set strict deadlines by which their
contractors had to be certified.
From a comparative perspective, as of January 1995, 205 of the 319 companies
(64%) certified by HKQAA were construction or construction related (Byrne
1995). Large public sector clients, such as the Hong Kong Housing Authority and
the Architectural Services Department, have themselves developed systems that
earned them ISO 9000 certification. Another large client, the Mass Transit
Railway Corporation, has developed a quality management system in line with
ISO 9001 (Lo & Yeung 1995), and also obtained ISO 9001 certification for its
system for the project management of the new railways. One of the dilemmas
confronting contractors and certifiers is the method of incorporating the subcontractor's work for certification, especially in view of the high degree of multilayered subcontracting in Hong Kong and the fact that subcontractors differ from
project to project. One extreme approach is for contractors to deploy only ISO
9000 certified subcontractors, but it is more usual for the former to develop strict
subcontractor control procedures (Industry Department 1994).
The Hong Kong Construction Association (1992) developed a booklet 'as
useful guidance for contractors implementing a quality assurance system for
certification to ISO 9000'. More such construction-specific guidelines would be
valuable to companies, in that they could incorporate for example, the 'lowest
common denominator' of requirements for contractors/consultants/clients, as
well as provide useful pointers to potentially critical parts in their operational
areas.
Having experienced ISO 9000 certification in the Hong Kong construction
industry itself for over three years, and having witnessed the development of
organizational quality systems, it is perhaps a suitable stage to take stock of both
successful and less successful efforts, in order to draw lessons for the future. Many
questions have arisen in this quest for quality, for example as to the validity or
otherwise of the complaints about excessive paperwork that detracts from the
'real' work, and the value of the 'real' net benefits derived from different systems,
considering both tangible and intangible costs and benefits, whether quantifiable
or otherwise.
THE HONG KONG EXPERIENCE: AN INTERIM EVALUATION
The following extracts from experiences in obtaining and maintaining ISO 9000
certification in Hong Kong provide insights into the strengths and weaknesses of
this route. Each of the following surveys was carried out independently, hence the
lack of direct correlations between the questions asked of the respondents.
However, the important conclusions are found to converge and are therefore
discussed as such in summarising the overall lessons learned.
The first three surveys, as described, are of construction contractors, while the
fourth and fifth are of clients and the sixth of consultants; all of whom have
obtained ISO 9000 certification. The opinions of 'quality assurance consultants'
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Quality in Hong Kong construction

are also incorporated in subsection A2 on the first survey. The possibility is noted
of a certain degree of overlap between the respondents to the three surveys of
contractors.

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Survey A - of contractors, in the 1994/95 University of Hong Kong final

year project
This survey was undertaken as a major component of an undergraduate project of
a student of the Department of Civil and Structural Engineering in 1994/95 (Yiu
1995) under the supervision of this author. The full project included surveys of
contractors, consultants and clients who had achieved ISO 9000 certification, and
quality assurance consultants who had assisted contractors. The surveys of
consultants and clients are summarised as surveys E and F below.
The project objectives were:
1 T o investigate the extent and benefits of the implementation of ISO 9000
standards in the Hong Kong construction industry
2 T o investigate whether the benefits of ISO 9000 certification exceeded the costs
3 T o recommend improvements in the implementation of ISO 9000 standards in
the Hong Kong construction industry.
Questionnaires to contractors
Questionnaires sent to 60 building and civil engineering contractors certified to
ISO 9002 by HQAA, generated 16 responses from a range of 'large', 'medium'
and 'small' contractors. The following summarises the main responses, as relevant
to this paper:
1 In listing the aims of seeking ISO 9000 certification, only 6 (38%) included the
aim of 'increasing effectiveness/efficiency', while 14 (88%) included that of
fulfilling clients' needs. The following summarises the responses to this question.
14 - fulfil customers' requirements
9 - increase reputation
8 - improve internal process
7 - provide third party certification
6 - follow competitors' action
6 - increase effectiveness/efficiency
4 - improve profitability
1 - open new markets.
2 Interestingly, after implementation, only 7 respondents (44%) noted an
increase in clients' satisfaction, while 13 (81%) experienced an increase in
management control of their companies. The following summarises the
responses to this question:
13 - increase in management control
9 - increase in construction cost
9 - increase in reputation
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3
4

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5
6

7 - increase in clients' satisfaction

7 - increase in quality
7 - increase in employees' morale/discipline
2 - decrease in defective work
1 - increase in profitability.
13 respondents (81%) had set up quality assurance divisions, usually with 1 to 3
full time staff.
Although only 7 respondents (44%) considered it necessary to employ a quality
assurance consultant to assist them towards certification, 10 of them (63%)
actually did so with the intention of expediting the process.
The average time to obtain certification was 3 years.
6 (38%) of respondents admitted that they did not 'address' all clauses (aspects)
of ISO 9002 during their day-to-day operations; while 2 (12.5%) experienced a
'lot of inconvenience and another 2 (12.5%) encountered a 'little' inconvenience in addressing all the clauses. Most of the inconvenience was attributed
to excessive documentation and increased overheads.
Specific clauses identified as being difficult to address in the context of
current resources of the local construction industry were: 4.4 (document
control); 4.5 (purchasing); 4.7 (product identification and traceability); 4.8
(process control); 4.13 (corrective and preventive action); and 4.18 (statistical
techniques).
The respondents were equally divided (8 each) in answering the question on
whether the benefits exceeded the costs of ISO 9000 certification. Still as an
overview, 14 respondents (88%) welcomed the introduction of ISO 9000
standards in Hong Kong.
Specific comments from the respondents welcomed clarifications of grey areas
in the 1994 revision of ISO 9000; suggested reduced documentation, for
example by grouping some specified items; and requested more constructionindustry specific standards.

Interviews
Follow-up interviews with three medium/large contractors and two quality
assurance consultants confirmed and further clarified the foregoing findings from
the questionnaire survey. For example, the quality assurance consultants concurred with most of the difficulties experienced and the resulting recommendations of the sample of contractors. Those included concerns as to sub-contractors,
safety and cost-related issues. However, they also noted that the general criticisms
of ISO 9000 had reduced after some of the benefits began to be appreciated; and
also that contractors should realise that many benefits would be long term rather
than short term.
Survey B - of contractors, by the Technical Audit Unit of the Works Branch
The quality policy of the Works Branch, as issued in May 1991, committed it to
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Quality in Hong Kong construction

achieving international quality standards in public works construction. In accordance with this goal, it was decided in February 1993 that all contractors in list I
group C (local contractors for projects over HK$30 million (about UK 2.4
million) or list II (overseas contractors) should be certified to ISO 9000 after
October 1996.
A survey by the Technical Audit Unit of the Works Branch was carried out
between November 1993 and January 1994, in order to investigate the effects of
the adoption of quality assurance standards. Questions were answered by 20
major contractors in the aforementioned target categories (list I group C and list
II). Meetings and a site visit reinforced the findings. Although the report itself is
unpublished, the main findings that are relevant to this paper can be summarised
as follows:
1 Eighteen of the companies stated that they initiated a quality system because of
the certification requirements of the Hong Kong Housing Authority.
2 Advantages noted after implementation included improved work quality;
reduced rework; better administration, document control and information
retention; better material control/reduced wastage and improved site safety.
3 Disadvantages noted included additional costs (both in setting up and running)
deemed irrecoverable under the current tender climate; and excessive documentation, for example in 'double-handling' of paperwork.
4 Fifteen companies (of the 18 who replied) consented to estimate their additional costs for their quality system, as a percentage of annual running costs.
Discarding two special cases, these ranged from the highest estimate of 15% to
the lowest of 0.5%, with an average (arithmetic mean) of 2.9%.
5 Twelve of the 20 companies agreed that ISO 9000 'could' be applied in the
Hong Kong construction industry. Advantages were specially noted in contract
reviews, document control, material control and work inspection. But 4 of these
12 companies suggested relaxations in items such as the calibration of minor
tools and traceability of sundry materials, highlighting differences between the
construction and manufacturing industries. One respondent noted that 'ISO is
just a starting point' and one component of T Q M that enables selfimprovement.
Four respondents considered ISO as unsuitable for the construction industry. Another suggested that a provisional sum be incorporated to cover a quality
assurance system. Almost all the respondents recommended the incorporation
of quality assurance systems in the syllabi of academic institutes so as to reduce
the 'learning curves' on construction projects.
6 Seventeen of the 20 companies employed quality consultants to assist them in
obtaining their certification. 12 of the 17 companies said that those consultants
were useful at the initial stage in 'understanding' ISO. But quality manuals
prepared by consultants were mostly considered too lengthy and complicated to
implement. Four other respondents were satisfied because their consultants
were familiar with the construction industry.

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Survey C - of contractors, by the University of Hong Kong Industrial Centre

This survey (Lee 1994) was conducted in 1994 to:
'(1) reflect the experience of implementing the ISO 9000 standards in Hong
Kong; and (2) to identify the strengths and weaknesses of the quality assurance systems in Hong Kong as a guide for continuous improvement'.
Sixty-one completed questionnaires were received from 137 sent to all those
companies certified by the HKQAA at the time. The main findings that are
relevant to this paper are:
1 Seventy-three per cent of the building and construction respondents indicated
that they adopted ISO 9000 because of their clients' requests, whereas only 1 of
the 19 service industry companies responded similarly
2 The smallest certified company in the building and construction sector had 7
staff members, while the biggest had 1200
3 Apart from 27% of the building and construction respondents, who did not
increase their manpower for purposes of implementation, most hired one or
two additional people, while some claimed that they expanded their workforce
up to 5% for this purpose
4 Only 15% of building and construction companies demanded ISO 9000 certification from their subcontractors, compared to 37% and 4 1 % from 'service'
and 'manufacturing' companies respectively
5 Only 50% of building and construction respondents stated that they had
increased efficiency after implementation, compared to 74% and 69% in the
'service' and 'manufacturing' companies respectively
6 In general it was evident that 'drastic' short-term benefits could not flow from
certification.
Survey D - of clients, by this author

Questionnaires - followed by group discussions and outputs

The author issued questionnaires in April 1995 to samples of middle/senior level
professionals (architects, engineers and quantity surveyors) from two large public
sector construction clients of building projects identified here as A and B. A had
itself obtained ISO 9000 certification a couple of months before the survey, while
B had obtained it about two years previously. However, a relatively larger sample
(13) was obtained from A then B (6).
The respondents had to answer questions on a scale from 1 (not at all) to 5 (very
much). These were converted to indices on a scale from 1 to 100 for ease of
comparison. The first two questions were designed to derive the profile of the
respondents in respect of their involvement with ISO 9000 initiatives. The corresponding index is thus named the involvement index (II). Questions 3 to 8
relate to the perceived usefulness of the ISO 9000 certification and associated
systems, hence the corresponding index is named the usefulness index (UI).
Both the II and the UI are computed on the basis of the formula used in
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construction

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calculating the relative importance index, for example as used by Kometa et al.
(1995). Each index is thus taken as:

where r = rating as assigned by each respondent in a range from 1 to 5, A = the

highest possible rating (5), N = the total number in the sample.
Table 1 indicates the average responses to each question of each of the target
groups, i.e. from each of the organizations A and B.
It appears that while both sets of respondents have more than a reasonable
familiarity with ISO 9000 systems, they are in general not so satisfied with its
installation, operation and benefits; except that those from organization B are
reasonably satisfied with the overall benefits to their organization. It should be
noted that the ISO 9000 certified systems have been in place longer in organization B, thereby allowing more time for the manifestation of longer term
benefits.
A ninth question in the questionnaire inquired as to whether the frequency of
the audits should be reduced. Since the respondents were 'at the receiving end' of
the audits it is perhaps not surprising that the average opinion favoured less frequent audits. Thus indices of 72 and 60 on a scale from 20 to 100 were obtained
from samples A and B respectively, where a higher index indicated preferences for
less frequent audits.
A tenth item in the questionnaire invited recommendations for improving ISO
9000 systems. Responses included suggestions for simplification, reduced
paperwork, more attention to the 'principles' rather than 'word by word' inter-

Table 1 Client's attitudes to ISO 9000

Sample

1 Have you participated in

(a) developing ISO? (in your organisation)
(b) using ISO
(c) evaluating ISO?
2 How familiar are you with ISO?
3 Has ISO brought significant net benefits to your organisation?
4 Has ISO brought significant net benefits to end-users?
5 Have the overall benefits exceeded the costs?
6 Is ISO appropriate for your organisation?
7 Is it easy to install?
8 Is it easy to operate?

Index
Type*

40
72
35
62
48
45
47
46
45
52

46
84
36
66
64
56
50
54
44
56

II
II
II
II
Ul
Ul
Ul
Ul
Ul
Ul

II = involvement index (of respondents). Ul = usefulness index (as perceived by respondents).

Notes:
Sample size: 13 from A; 6 from B. The foregoing represent the average (arithmetic mean) of the responses from each
sample, to each question.
Scale: 1 = not at all; 2 = a little; 3 = reasonably; 4 = a lot; 5 = very much.
ISO refers to ISO 9000 systems.

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pretations when auditing, and in the extreme, even that it should not be applied to
design type process (2 responses from a total of 19).
Subsequent group discussions with the same target groups yielded recommendations for improved approaches if developing a quality system in a similar
organization in the future. For example, a goal of T Q M was recommended, while
ISO 9000 certification was considered useful for third party audits in respect of the
organization, its consultants and its contractors.
Interviews
The author's discussions with senior officials of a large public sector client coordinating body, have discerned a growing awareness of the feasibility of, and the
need for, integrating other crucial areas of current concern in construction into
broader quality systems. Specifically, construction safety and dispute avoidance
and resolution systems which are themselves being developed could be incorporated in this overall system.
If not so incorporated, each of these areas would generate its own subsystems,
including organizational and documentation demands that may duplicate or
conflict with one another. If integrated as proposed here, the overall system could
still be considered a quality system rather than a general management system,
since concepts of doing things 'right the first time' or 'better each time' 'fitness for
purpose' or 'satisfying needs', necessarily signify doing things 'safely' and imply an
avoidance of disputes.
Survey E - of clients, in the 1994/95 University of Hong Kong final
year projects
One of the major clients interviewed in this survey, the Mass Transit Railway
Corporation, had established an internal quality management system based on
ISO 9000 with a two-tier documentation structure comprising a project quality
manual and a department procedures manual. While not insisting that its
contractors be ISO 9000 certified, it still required them to work according to the
standards, for example to submit quality plans and to submit to audits. The other
major client interviewed, the Hong Kong Housing Authority, had on the other
hand used ISO 9000 as a benchmark both for itself and its suppliers and contractors, setting deadlines for its achievements. However, even this client expects
and obtains more than mere ISO 9000 certification from its contractors. This is
demonstrated in their PASS - performance assessment scoring system (Hong
Kong Housing Authority 1994) - which confers more tendering opportunities on
contractors achieving higher PASS scores.
Both clients clarified the long term goals of their quality management systems,
expressed general satisfaction with interim results and indicated the areas of
current review (Yiu 1995). For example, the Housing Authority is developing the
'input assessment' component of PASS which evaluates construction resource
inputs, and also the relatively new maintenance assessment scoring system
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Quality in Hong Kong construction

(MASS). Another final year project under this author's supervision in 1994/95,
studied and made recommendations on the PASS developments (Wong 1995),
one of which was to minimize the duplication of documentation and other efforts
required from contractors in their PASS input assessment and in obtaining ISO
9000 certification.

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Survey F - of engineering consultants, in the 1994/95 University of

Hong Kong final year project
As of July 1995, only one architectural and three engineering consultants had
obtained ISO 9000 certification in Hong Kong, while many others are awaiting
audits or have applied for certification. Questionnaires sent to the three ISO
certified engineering consultants were all completed in early 1995. Two are
internationally reputed private sector consultants, while the third is the management division of a large public sector client in Hong Kong, which recently received
certification of its project management system for an on-going mega project.
It appeared that:
1 All the respondents were more concerned with improving their internal
processes and their effectiveness and efficiency, than with fulfilling clients'
needs
2 None of them used quality consultants to assist them in obtaining the certificates
3 One respondent admitted to not addressing all clauses of ISO 9001 in practice,
while even the others agreed on the inconvenience in addressing all the clauses,
such as that incurred through increased documentation and overheads
4 Two of the respondents believed that the benefits exceeded the costs incurred
in obtaining their ISO 9000 certification, while all three welcomed its introduction.

LESSONS LEARNED AND STRATEGIES FOR THE FUTURE

Interim conclusions from the Hong Kong surveys
A detailed consolidation of the survey outcomes is difficult because of the differentials within the target groups, the questions asked and the post-certification
periods of different respondents. However, the general conclusions from recent
experiences, as discerned from the majority views of those in construction
organizations in Hong Kong, clearly indicate that:
1 ISO 9000 certification is a useful step along the quality management route, and
provides a uniform basic training/discipline, as well as facilitating standardized
checks and balances
2 Quality management systems should extend beyond ISO 9000 in order to
optimize the benefits/costs trade-off for quality systems and to achieve overall
goals of enhanced effectiveness and efficiency
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Kumaraswamy, M.M.

3 General quality management consultants cannot by themselves develop useful

quality systems for construction organizations, unless they have specific
construction industry experience
4 A long-term strategy for each organization, that incorporates and balances the
foregoing needs, is required rather than the present ad hoc responses to clients'
requests that may hinder the optimal development of quality systems and
generate negative impacts through disgruntled or disillusioned staff, and
through distorted, narrow or short-term systems
5 A quality culture that permeates from top to bottom of all construction organizations is needed, along with an awareness of the longer term benefits that
should deflect any disillusion with a lack of short-term gains compared to costs
6 A specific set of guidelines is required for the construction industry, for
example, rationalising and reducing paperwork, perhaps by integrating with
other cost, progress and materials control systems; recognizing different tolerance levels and traceability needs of sundry/less significant materials and
eliminating such less significant paperwork; catering to the special effects of
subcontractors; and recognising the short-term nature of projects and the
specific vagaries and variables in construction projects
7 Safety management and dispute avoidance/rapid resolution principles and
procedures should be integrated with the quality systems themselves
8 Quality management principles and special aspects such as the quality assurance/ISO 9000 requirements should be incorporated in the syllabus of academic and training institutions producing personnel for the construction
industry.
Identifying options and formulating strategies
Conventional decision making strategies may be used, for example in brainstorming, to identify objectives, constraints and available options, and to evaluate
their effectiveness, efficiency and possible repercussions. Previous experiences
would assist in such evaluations, whether derived from different sections of the
Hong Kong or another construction industry. The following is proposed as an
example of such a strategy.
Three alternative quality 'routes' are identified as the options in this example;
but there could be more. As in the structure indicated in Table 2, the goals are
identified; the indicators or metrics (standards of measurement, whether qualitative or quantitative (Stevens et al. 1994)) by which to evaluate achievements
against such goals, are decided; the present status and targets are quantified or
otherwise identified in terms of such metrics, for example in increasing a 'present
status' of three large public sector clients to five in 1 year and to seven in 3 years.
Examples of typical goals that may be incorporated and listed in the first column
of Table 2 are: image/reputation (marketing); registration - general; registration specific client(s); prequalification - general; prequalification - specific client(s);
upgrade service; increase quality; instill quality culture; decrease rework; increase
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Quality in Hong Kong

construction

Table 2 Structure of a decision-aid to determine combined weighted desirabilities of alternative routes to

quality (quality systems) - with sample entries

Goals

Metrics
Present

Larger market Number

of clients
Better service Repeat orders
Productivity
Profit ($)/
employee

Status
Target
LongShortterm
term

Effectiveness of
different routes
ISO
TQM
Others
9000
R wR R wR R wR

5
10%

7
25%

10
50%

5
9

9
5

1.1x

1.4x

Combined weighted desirabilities:

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Priority
w(0-10)

45
45

7
8

35

125

35
72
63
170

productivity; improve procedures - improve communications, increase efficiency,

reduce wastage, enhance discipline, improve records; improve safety; enhance
morale; increase job satisfaction.
The priority of each goal is rated (as w) on a scale from 0 to 10. The perceived
effectiveness of different routes is also rated (as R), based on past experience and
estimates, again on a scale from 0 to 10. The weighted score (wR) is then computed for each goal and summed up vertically, to indicate the combined weighted
desirability of each route (as 125 and 170 in this case). The highest such total
should point to the desirable option in terms of effectiveness alone.
Table 3 includes an estimated cost/time matrix relating each of the alternative
routes to different implementation approaches. Such approaches differ with the
personnel employed/deployed to implement that system, i.e. whether in-house or
external consultants, and also whether part-time or full-time.
Table 4 indicates an example of how the strategy may be structured into
quantifiable stages. Another decision-aid could be developed for the selection of
the optimal effectiveness/cost/time trade-off. But for simplicity, it is supposed that
this choice can be better made by senior management, who would be well aware of
both their explicit and other priorities, as to system effectiveness versus budgetary
and time frame constraints. Management should therefore be in a better position
to make these 'trade-off' choices with the outcomes of Tables 2 and 3 before them.
Figure 1 gives an example of a flowchart that summarises the sequence of steps

Table 3 Cost/time estimates for alternative quality systems and different approaches
Approach

Full-time
in-house

Part-time
in-house

External
consultants

Other
(e.g. mix)

$ months
$ months
$ months

$ months
$ months
$ months

$ months
$ months
$ months

$ months
$ months
$ months

Route
ISO 9000
TQM
Other (e.g. combined)

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Kumaraswamy,

M.M.

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Table 4 Basic outputs schedule - with sample entries

Target output

Target date

Quality policy, route, etc.

Draft quality manual
Quality manual
Operation manuals
Quality procedures manuals
Standard forms
ISO 9000
TQM - stage 1
TQM - stage 2
Others (as per policy)

Jan. 199x
Mar. 199x
May 199x
Aug. 199x
Aug. 199x
Oct. 199x
Jan. 199(x+1)
Mar. 199(x+1)
Oct. 199(x+1)

Budget ($)

Responsibility/
Person and Team
Directors
Quality manager*
Quality manager*
Quality task force* *
Quality task force**
Quality task force**
Quality manager*
Quality manager*
Quality task force**

* May commission external consultant to assist.

* * Will include key representatives from operational team, e.g. engineers, supervisors - as required.

to be taken in developing the foregoing Tables 2-4, and in formulating an

appropriate strategy.
The generalized nature of this model enables it to be applied by construction
organizations in scenarios both within and outside Hong Kong, whether in
developed or developing countries. However, modifications may be made to the
list of goals in Table 2, the range of routes in Tables 2 and 3 and the schedule of

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Quality in Hong Kong construction

target outputs in Table 4. Thus appropriate quality management strategies may be

rapidly developed to suit specific scenarios based on the proposed model.
Costs in Table 3 are likely to arise both directly and indirectly. Direct costs may
arise, for example from directly deployed in-house personnel (whether full or parttime), consultants, documentation, additional tests, verifications and validations,
external certification and audit costs. Indirect costs may arise, for example, from
interference.

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CONCLUDING OBSERVATIONS
The foregoing conclusions from the Hong Kong surveys, together with the strategies and basic frameworks formulated thereafter, confirm the usefulness of this
research aimed at developing an easily understandable range of options and
corresponding 'decisions-aids' that would help an organization in search of a
suitable route to enhanced quality management systems. Further investigations
are planned to test the usefulness or otherwise of incorporating a 'knowledgebased' or 'neural network-based' front-end to increase the range and flexibility of
these 'decision-aids', so that they may function with the incomplete or uncertain
information that may be available to the decision makers seeking an appropriate
route to 'quality'. Furthermore, this would facilitate incorporating other components from related databases such as safety and dispute minimisation strategies
and procedures, as well as progress and cost management procedures, so as to
develop an integrated, comprehensive and advanced total quality management
system for construction organizations.

ACKNOWLEDGEMENTS
The author wishes to thank all the survey respondents for their contributions to
the statistics and overall opinions projected in this paper. The author also specifically acknowledges the respondents to the author's survey of clients; the survey
results reported by Dr T.Y. Lee of the Industrial Centre of the University of Hong
Kong; the survey results obtained from the Technical Audit Unit of the Works
Branch in Hong Kong; and the conscientious efforts of Ms Shirley Yiu Shuet
Ping, whose final year project surveys and discussions thereon were valuable in
formulating this paper.

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