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

THE MALAYSIAN CONSTRUCTION INDUSTRY 1 GDP – 3.42% Acts as a catalyst for and has multiplier effects to the economy Provides employment to 800,000 workers Make Us Your Partner

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

Challenges Facing The Malaysian Construction Industry (Cont’d) 3 Engagement of illegal & unskilled foreign workers Selling of construction materials beyond the government controlled price Issue of non-payment Make Us Your Partner

Construction Industry Development Board of Malaysia (CIDB) 4 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

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

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

Best Practices Areas covered:- 7 Areas covered:- Training & accreditation of contractors & construction workers Upgrading of the supervisory & project management Health & safety, environmental issues & sustainable construction Make Us Your Partner

Training & Accreditation of Contractors 8 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

Export of Services 9 Malaysian contractors are currently active in 38 countries Registry for contractors venturing abroad Monitoring of performance Make Us Your Partner

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

Enhancement Of Integrity 11 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

Code of Ethics for Contractor 12 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 Make Us Your Partner

Six (6) Principles Principles 1 – Honesty in carrying out 13 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

Six (6) Principles (Cont’d) 14 Principles 4 – Importance of Quality, Skills & Standards Principles 5 – Importance of Safety, Health & Welfare Principles 6 – Importance of Environmental Preservation Make Us Your Partner

Training & Accreditation of Construction Workers 15 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

Upgrading Supervisory & Project Management Skills 16 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

Occupational Safety & Health in Construction 17 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 18001:1999 certification Make Us Your Partner

Sustainable Construction And The Environmental 18 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

Improvement of the Delivery 19 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 2005. Make Us Your Partner

Improvement of the Delivery (Cont’d’) 20 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

21 Conclusion 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

THANK YOU http://www.cidb.gov.my Make Us Your Partner