ENHANCING INTEGRITY Best Practices in Construction

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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 April 2008
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THE MALAYSIAN CONSTRUCTION INDUSTRY
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• GDP 3.42
• Acts as a catalyst for and has multiplier effects
  to the economy
• Provides employment to 800,000 workers

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Challenges FacingThe Malaysian Construction
Industry
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• Low productivity
• Shoddy workmanship
• Substandard materials
• High fatality rates at work sites

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Challenges FacingThe Malaysian Construction
Industry (Contd)
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• Engagement of illegal unskilled foreign workers
• Selling of construction materials beyond the
  government controlled price
• Issue of non-payment

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Construction Industry Development Board of
Malaysia (CIDB)
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• 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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Construction Industry Master Plan(CIMP)
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• A 10 year blueprint for a holistic development of
  the industry that encompasses-

• Productivity
• Efficiency
• Quality
• Safety Health
• Environment

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Construction Industry Master Plan(CIMP)
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• A 10 year blueprint for a holistic development of
  the industry that encompasses-

• Human Resources
• Research Development
• Sustainability
• Information technology
• Image professionalism

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Best Practices
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• 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
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• 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 Services
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• Malaysian contractors are currently active in 38
  countries
• Registry for contractors venturing abroad
• Monitoring of performance

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Issues On Payment
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• Issues of late and non-payments
• Construction Industry Payment Adjudication Act

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Enhancement Of Integrity
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• Construction Industry Integrity Committee
• One day awareness course on integrity as the
  pre-requisite for the renewal of contractors
  license

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Code of Ethics for Contractor
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• 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
for
CONTRACTOR
Lembaga Pembangunan Industri Pembinaan Malaysia
Tingkat 7, Grand Seasons Avenue, 72 Jalan Pahang,
53000 Kuala Lumpur
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Six (6) Principles
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• 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 (Contd)
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• 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
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• 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
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• 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
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• 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 180011999 certification

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Sustainable ConstructionAnd The Environmental
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• 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 Delivery
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• 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 (Contd)
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• 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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Conclusion
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• 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 YOU
http//www.cidb.gov.my