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ENHANCING INTEGRITY Best Practices in Construction By Y.Bhg. Datuk Ir. Hamzah Hasan Chief Executive, Construction Industry Development Board Malaysia 22.

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Presentation on theme: "ENHANCING INTEGRITY Best Practices in Construction By Y.Bhg. Datuk Ir. Hamzah Hasan Chief Executive, Construction Industry Development Board Malaysia 22."— Presentation transcript:

1 ENHANCING INTEGRITY Best Practices in Construction By Y.Bhg. Datuk Ir. Hamzah Hasan Chief Executive, Construction Industry Development Board Malaysia 22 April 2008

2 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 THE MALAYSIAN CONSTRUCTION INDUSTRY Make Us Your Partner 1

3 Challenges Facing The Malaysian Construction Industry Low productivity Shoddy workmanship Substandard materials High fatality rates at work sites Make Us Your Partner 2

4 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 Facing The Malaysian Construction Industry (Cont’d) Make Us Your Partner 3

5 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 Make Us Your Partner 4

6 Construction Industry Master Plan (CIMP) A 10 year blueprint for a holistic development of the industry that encompasses:- Productivity Efficiency Quality Safety & Health Environment Make Us Your Partner 5

7 Human Resources Research & Development Sustainability Information technology Image & professionalism A 10 year blueprint for a holistic development of the industry that encompasses:- Construction Industry Master Plan (CIMP) Make Us Your Partner 6

8 Best Practices Areas 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 Make Us Your Partner 7

9 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) Make Us Your Partner 8

10 Export 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 Make Us Your Partner 9

11 Issues On Payment Issues of late and non- payments Construction Industry Payment & Adjudication Act Issues of late and non- payments Construction Industry Payment & Adjudication Act Make Us Your Partner 10

12 Enhancement 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 Make Us Your Partner 11

13 Code 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 CODE OF ETHICS CONTRACTOR Lembaga Pembangunan Industri Pembinaan Malaysia Tingkat 7, Grand Seasons Avenue, 72 Jalan Pahang, Kuala Lumpur Make Us Your Partner 12 for

14 Six (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 Make Us Your Partner 13

15 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 Make Us Your Partner 14

16 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 Make Us Your Partner 15

17 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. Make Us Your Partner 16

18 Occupational Safety & Health in Construction Master Plan for Occupational Safety & Health ( ) 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 ( ) to complement the efforts of the Department of Occupational Safety & Health & fatalities at construction sites OSHMS MS 1722/OHSAS 18001:1999 certification Make Us Your Partner 17

19 Sustainable Construction And 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) Make Us Your Partner 18

20 Improvement 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 Make Us Your Partner 19

21 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. Make Us Your Partner 20

22 ConclusionConclusion 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 Make Us Your Partner 21

23 THANK YOU Make Us Your Partner


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