Project Cost Management Forum 2025 Focuses on Cost-effectiveness in Construction Through Innovation and Collaboration

Project Cost Management Forum promotes cost-effectiveness of construction projects

The Development Bureau (DEVB) held the Project Cost Management Forum 2025 today (November 7). With the theme "Construction New Normal: Co-defining Cost-effectiveness", the forum explored how to enhance the cost management and cost-effectiveness of construction projects through optimised procurement strategies and the application of innovative technologies.

In his opening remarks, the Deputy Financial Secretary, Mr Michael Wong, said that the Government is pressing ahead with infrastructure investment, which drives economic growth, job creation, talent attraction, and enhances long-term competitiveness. He noted that in the coming few years, the annual capital works expenditure will be about $120 billion, with an additional $30 billion set aside for small and medium-sized projects. Mr Wong also expressed gratitude to the Project Strategy and Governance Office of the DEVB for promoting a culture of "Fitness-for-Purpose, No Frills" and helped save about $190 billion across more than 540 projects over the past nine years.

Speaking at the forum, the Secretary for Development, Ms Bernadette Linn, said that the DEVB has been actively fostering a culture of cost-consciousness within the construction industry and has implementedwhole-process project cost governanceat various stages of public works projects to ensure the careful use of public funds. With the rollout of major developments like the Northern Metropolis and an increased capital works investment by the Government, this cost-consciousness mindset is more critical than ever. The Government is planning ahead with an "ownership" mindset to comprehensively evaluate the cost-effectiveness of different implementation proposals and review site selection, usage mix, the scale of the project, design, implementation programme etc, in the very upfront stages, to formulate practical and cost-effective proposals. The Government also fully embraces the integration of technological and industrial innovation to enhance productivity, and is keen to uplift the capabilities of a diverse construction talent pool, promote knowledge exchange and strengthen collaboration with Mainland and international partners, thereby reinforcing our role as international infrastructure centre.

Afterwards, the Permanent Secretary for Development (Works), Mr Ricky Lau, delivered a keynote speech. He said that to reduce construction costs for public works and expedite project delivery, the DEVB is advancing reforms in four areas: optimising the project procurement model, applying advanced technologies, streamlining the approval process, and reviewing the design standards and requirements. These cost-control measures are being rolled out progressively to ensure that policies are targeted, practicable and capable of delivering sustained results.

At the forum, Mr Wong and Ms Linn witnessed the exchange of a Memorandum of Understanding (MOU) between the DEVB of the Hong Kong Special Administrative Region Government and the Ministry of Finance of Singapore. The MOU aims to enhance exchanges of professional knowledge and experience in managing and delivering infrastructure projects. It facilitates collaboration between the two places, improves project delivery models through the promotion of digitalisation and the adoption of innovative construction methods. It also strengthens the leadership and delivery capabilities of project leaders, thereby boosting productivity and performance in the construction industries of both places.

The forum brought together expert speakers from different places to share practical experiences in reform and innovation. Among them, the Executive Director of the Centre for Public Project Management under the Ministry of Finance of Singapore, Mr Low Chian Siong, elaborated on institutionalising cost control and implementing outcome-based procurement; the Head of Planning and Cost Control at Public Works Authority "Ashghal" of the State of Qatar, Mr Mohammed Bader Alnama, introduced centralised procurement and digital monitoring mechanisms adopted for large-scale infrastructure projects; and the Secretary-General of the GuangDong Engineering Cost Association, Mr Xu Xiyan, shared how cost management can be better aligned with regional policies. Over 400 representatives from government departments, engineering consultancies, contractors and professional bodies from Hong Kong, the Chinese Mainland, Singapore, Qatar, the United Kingdom and more participated in the forum both online and offline.

Project Cost Management Forum promotes cost-effectiveness of construction projects Source: HKSAR Government Press Releases

Project Cost Management Forum promotes cost-effectiveness of construction projects Source: HKSAR Government Press Releases

Project Cost Management Forum promotes cost-effectiveness of construction projects Source: HKSAR Government Press Releases

Project Cost Management Forum promotes cost-effectiveness of construction projects Source: HKSAR Government Press Releases

Project Cost Management Forum promotes cost-effectiveness of construction projects Source: HKSAR Government Press Releases

Project Cost Management Forum promotes cost-effectiveness of construction projects Source: HKSAR Government Press Releases

Collecting preferences of Wang Fuk Court flat owners to advance long-term rehousing work

A Government spokesman said today (January 9) that social workers under the "one social worker per household" service of the Social Welfare Department (SWD) are proactively contacting flat owners of Wang Fuk Court, who were affected by the fire. They are comprehensively and systematically gathering each owner's preliminary preferences regarding long-term rehousing to assist in formulating and implementing specific plans.

The Chief Executive previously instructed the Task Force on Emergency Accommodation Arrangements to co-ordinate relevant policy bureaux and departments in studying long-term rehousing solutions. Adhering to the principles of "empathy, reason, and law", with priority given to "empathy", the Task Force aims to address the individual circumstances and preferences of residents while ensuring the efficient use of resources to assist affected households in rebuilding their homes.

The spokesman said, "Social workers from the SWD have been in contact with the residents, listening to their views, understanding their actual situations and needs, and providing necessary assistance. Regarding long-term accommodation, we have noticed differing opinions among flat owners and the community. For example, some hope that the Government will acquire the properties or give priority to Wang Fuk Court flat owners to purchase Home Ownership Scheme flats. Some residents seek local rehousing, while others accept rehousing in different districts. Some propose in-situ redevelopment, but there are also concerns about the lengthy waiting times.

"We hope to systematically and comprehensively collect Wang Fuk Court flat owners' opinions, further listening to and summarising their preferences. This includes identifying key principles that the Government should consider when addressing long-term accommodation arrangements and noting the flat owners’ initial preferences for different long-term rehousing options. This information will serve as a reference for the Government's follow-up actions."

Starting today, social workers under the SWD's "one social worker per household" service will begin contacting flat owners of Wang Fuk Court to gather their initial preferences regarding various long-term rehousing arrangements. The goal is to collect responses from the flat owners by mid-to-late January for analysis.

The spokesman said, "The Task Force will carefully compile and study the different preferences of flat owners and will conduct a comprehensive assessment based on the actual conditions at Wang Fuk Court, including structural safety, technical feasibility, and community planning. We aim to provide affected flat owners with suggestions regarding long-term proposals as soon as possible for their consideration and decision-making."

He said, "The Government and affected flat owners share a same objective: to implement solutions promptly and reassure them as soon as possible."

Following the fire, the Government arranged emergency accommodation for the affected residents of Wang Fuk Court in a short time frame. As of today, more than 4 400 residents are staying in hotels, youth hostels/camps, transitional housing, units from the Hong Kong Housing Society or Po Tin Interim Housing in Tuen Mun. Since December 22 last year, the Support Fund for Wang Fuk Court in Tai Po has provided each flat owner, in tranches, with a two-year rental subsidy up to a maximum of $300,000, giving them more flexibility and options in their accommodation arrangements.