Lighthouse Club Annual Dinner Five Elements (WU Xing) of Construction Site Safety Mr. Conrad Wong JP President, Hong Kong Construction Association November 5, 2008

Natural phenomena can be classified into the Five Elements Metal (金) Wood (木) Water (水) Fire (火) Earth (土) You will get a perfect health, if you get the balance of the Five Elements. The doctrine of five elements describes two Cycles of Balance, a generating or creation cycle and an overcoming or destruction cycle of interactions between the phases. Five Safety Elements in Construction Industry Metal (金) = Safety hardware & procedure Wood (木) = Organization structure Water (水) = Money, contractual arrangement Fire (火) = Enforcement, penalty Earth (土) = People, training We will get a perfect safety performance, if we get the balance of the 5 Basic Elements!

Metal (金) – Equipment : Safety hardware to prevent accident Usually starts with Risk Risk assessment : Power Operate Protective Safety Net is installed on the top of the bending yard. Provide a safe working environment for steel benders. Featured a good housing-keeping system, clear identification of high risk trades, provided sufficient safe working equipment and recorded a lower accident rate as well as fast construction progress.

Metal (金) – Equipment : Safety hardware to prevent accident Safety is an integral part of Project Management !!! Control procedure for lifting precast elements. Pilot project in using 60% by volume of precast concrete works Weight of precast element ranged from 1.5 T to 9 T. Top management expresses their concern in safe lifting operation for precast elements.

Metal (金) – Equipment : Safety hardware to prevent accident Control procedure for lifting precast elements

Wood (木) – Organization Structure Site safety is our responsibility, not only the Safety Officer, not only the frontline Foreman, not only the Project Manager. General Manager Safety Officer routine reporting Line Safety Officer Project Manager Safety Manager Managing Director RMAA Don’t know who they are? Cannot enforce safety effectively! A new legislation will be enacted next year! Quarterly Safety Steering Committee Meeting Committee Member Directorate level of all subsidiaries General Manager Contract Managers Project Managers Chairman Managing Director Design Manager Plant Manager Chief Estimator Safety Managers

Wood (木) – Organization Structure For Yau Lee – Re-structure our safety organization Team-up all the safety staff in different subsidiaries into one single department! Mutual Objective ! More effective! Yau Lee : Re-structure of Corporate Health & Safety Organization Managing Director Corporate Safety Manager Safety Manager All Subsidiaries (HK & Overseas) All New Works Projects All Building Renovation & Fitting-out Projects Safety Officers Assistant Safety Officers Safety Supervisors General Manager

Water (水) - Money, Contract Arrangement Daily Morning Exercise & Briefing at 8:00 am Ensure the workers receive safety induction Training for all workers before issuing a Smart Card Smart Card Security Control System at the site entrance Prevention of arrears of wage Ensure the workers receive wage from subcontractor on time

Water (水) - Money, Contract Arrangement Reward to safe worker Performance evaluation method to evaluate the safety performance of workers every month. Supermarket coupon as a minor incentive Reward to subcontractors Priority tender Performance recognition in annual dinner Reward to site supervisory team Fixed amount rewards for good site safety management Reward to main contractor Pay for Safety Scheme : Approx. 2% of contract sum Construction Industry Safety Award Scheme Score Card for Assessment of Site Safety Performance Good safety performance with better tender opportunity.

Fire (火) - Enforcement, Penalty Government Development Bureau Panel of Enquiry Warning Letter Possible Suspension Interviews with “Authorized Signatory” to have a investigation Tender Evaluation of Works, Performance Weighting, Preferential Tender Award System Independent Safety Audit Scheme Labour Department Improvement Notice Suspension Notice 30+ sets of Subsidiary Regulations Main Contractor Remove & suspend subcontractors with poor safety performance. Penalty for minor offense Reduce tender opportunity against contractors with poor safety performance Subcontractors Legal Responsibility of Subcontractors Proprietor may go to jail due to violation of Ordinance Voluntary registration system for subcontractors Worker Demerit Points system : Warning for any unsafe practice or disregarding safe working procedures

Earth (土) – People Training Safety starts from Awareness Mandatory Induction Safety Training Green Card All workers required to attend a refresher course every 3-year for revalidation. Competence training Engaged in operating high-risk plant an machinery as well as in hazardous work process Persons operating cranes, working on suspended working platforms and in confined spaces, gas welding and flame cutting work. Contractual Safety Training Silver Card Safety Training Course for Construction Workers of 10 high-risk trades Mandatory registration system for construction workers Painter and Decorator Carpenter Demolition Worker (Building) Plumber Bar Bender and Fixer Plaster, Tiler Bamboo Scaffolder, Metal Scaffolder Rigger / Metal Formwork Erector Curtain Wall Installer Lift Mechanic Workers are becoming more specialized and professional !

Earth (土) – People Training Guidance published by Labour Department, Buildings Department and Occupational Safety & Health Council Promotional and Publicity : Raising safety awareness and initiating positive attitude Safe working cycle, morning briefing, Tool box talk, prior-to-work inspection on equipment and electrical installation, hazard identification activity etc. Safe Working Procedure Hazard Identification Activity Safety Inspection by Management Specific Training

Results GOOD NEWS! 5 nos. of maintenance contracts with Zero Accident Record. Now, we know how to improve. We can make it happened. We will not, should not, be complacent. BAD NEWS! The private sector has not taken up the challenge! It’s up to us. The people sitting in this room promoting these proven measures to the rest of the industry. I believe 99.99% of the accidents can be prevented!

President, Hong Kong Construction Association Lighthouse Club Annual Dinner Thank You! Mr. Conrad Wong JP President, Hong Kong Construction Association November 5, 2008