Project Management Newsletter of the Hong Kong Institute of Project Management April 2005 Issue 1 1
Hong Kong Institute of Project Management Vision Our vision is to pursue excellence in Project Management Professionalism Mission We are committed to enabling project management practitioners to develop their skills through continuous professional development, and to facilitate the sharing of experience, knowledge and ideas Objectives - We aims at: Providing continuous support to project management practitioners in Hong Kong, Macau and China Enhancing the professional knowledge and competence of project management practitioners in response to market challenges Establishing an open forum facilitating dialogue and information exchange among members of HKIPM and Australian Institute of Project Management (AIPM) in Hong Kong, Macau and China Organizing continuous professional development programs, courses and seminars addressing new issues and topics in response to rapidly changing management systems Collaborating with local and overseas universities, for example, the University of South Australia, the Hong Kong Baptist University and the Hong Kong Polytechnic University, to develop high-quality project management programs. Developing networks and reciprocal status with related professional institutes Maintaining representation in the Asia Pacific Federation for Project Management (APFPM) Promoting and developing the professional status of project management across different disciplines and gain recognition for professional excellence Providing the region with up-to-date accurate information about project management 2
In this Issue 4 Message from the President 5 Feature MTRC: Project Partnering Win-Win Solution to Contractors and Developers 8 Trends Project Management in Australia and the Asia Pacific: Trends, Challenges and the Roles of Professional Associations 10 Continuous Professional Development 12 HKIPM Activities 15 Upcoming Events: April - June 2005 15 News 16 The Bookshelf 17 Classified Project Management April 2005 Issue 1 Advisors Dr. Neveen Moussa Mr. Colin Dobie Ms. Leign Cunningham Dr. Albert P. C. Chan Dr. John Chan Prof. Douglas Larden Mr. Tony Ma Mr. Justin Cole Ms. Viginia Mehrtens Mr. David Farwell Mrs. Estelle Farwell Council Members Mr. Jacky Tsang Mr. Samuel Ho Mr. Bob Tsoi Mr. C. C. Tai Mr. Simon Cheung Mr. Gary Tam Mr. Theseus Leung Mr. Albert Luk Mr. C. W. Chan Mr. Frankie Cheung Mr. K. S. Yim Mr. Paul Fong Mr. Samuel Wong Ms. Kennis Ng Project Management is distributed to members and friends of the Hong Kong Institute of Project Management to keep them informed of the Institute news and activities. The views expressed by the contributors are their own and do not necessarily reflect those of the Institute. 3
Message from the President Congratulations to all HKIPM members for good luck and good fortune in the New Year! With remarkably growth in our membership subscription since our first establishment in 2003, HKIPM decide to publish this first newsletter to send our heartfelt thanks to our members, our advisory board and our council for all of their continuous supports throughout the years. We would also like to take this opportunity to share with you our previous hard works and hope to sustain your invaluable supports to us in our upcoming activities. HKIPM earns valuable professional recognition since its formation in May 2003. With the signing of a reciprocal agreement between our Institute and the Australian Institute of Project Management (AIPM), HKIPM was also formally recognized as a member of the Asia Pacific Federation for Project Management (APFPM). Besides, our Continuous Professional Development (CPD) events have been well-received by members and other professional institutions. Cyberport site visit was one of them, Project Management Seminar at Beijing Chem-Tech University was another successful one, not to mention our joint CPD sessions or seminars with Australian Institute of Building (AIB) and Hong Kong Institute of Engineers (HKIE) and Hong Kong Baptist University (HKBU). In the New Year, we will keep going to develop CPD programs, courses and seminars to address and highlight recent issues and hot topics in the industry as well as to strengthen our collaborations with other related professional institutes for wider recognition and professional excellence. On behalf of HKIPM, I wish you every success in your professional life. Look forward to seeing you in our forthcoming activities! Jacky Tsang President 4
Feature MTRC: Project Partnering Win-Win Solution to Contractors and Developers The pioneering introduction of project partnering in one of Hong Kong s major infrastructural projects did not only boost overall efficiency, but also saved HK$15 billion for the MTR Corporation in its Tseung Kwan O Extension Project. It was the first systematic application of the American concept of project partnering in Hong Kong. The Tseung Kwan O Extension Project involved 33 major partnership contracts, 13 for civil works and 20 for electrical and mechanical works. It was the sixth operational line of MTRC that serves Tseung Kwan O new town and Yau Tong and was opened to the public on August 18, 2002. Results of the attempt have been promising. The whole project completed four months ahead schedule and saved HK$15 billion. Mr. Henry Lam, General Manager of MTR Corporation whose major responsibilities include design and delivery of railway projects, explained that partnering is a tool - maximization of manpower is the key. Project partnering is all about people and relations. Besides utilizing the human resources of the developer, we also want to benefit from the manpower of the contractors, Mr. Lam said. When two or more companies are involved, it is common they have different business direction. Through the partnering relations, it is hoped that the differences in business direction and resources can be unified to achieve a common goal, which is to make a profit. Traditional project management often shifts the majority of responsibility and risks onto the contractors alone. This relationship halts the building of shared responsibility and trust between the developer, contractor and consultant. The consequence is unnecessary and evitable disputes. MTRC believes that it is better to join hands and maximize the utilization of resources of both parties. 5
If the contractor is stronger in certain area, they will take a leading role and MTRC gives our support. Otherwise, the opposite happens, Mr. Lam explained. Certain areas unbind by legal terms are built on voluntary cooperation. We select contractors very carefully based on their performance in previous partnering relationships. We decided to introduce project partnering in 1998, at the time construction work for the Tseung Kwan O Extension Project commenced, because there had been conflicts in the construction industry. For instance, wages in the Airport Express project skyrocketed to a level we could not manage, added Mr. Lam. To us, the relationship between developers and contractors is no longer like that in an employment. It is more open and fairer. MTRC creates a favourable environment that boosts efficiency and it provides policies and directions while offering effective monitoring and evaluation. It all depends on project managers when it comes to implementation. A scoring system on trust, communication, finance and etc was established between the developer and contractors and they grade each other every month. Communication is enhanced and improvement is consequential. Meanwhile, all employees of MTRC who are in the partnering project were to receive training in particular areas. We organized training workshops and familiarized our staff with the partnering relations in various methods, like games. Steering groups came up with unified directions and give project managers higher freedom. They are also given training on how to communicate effectively with contractors, Mr. Lam said. The greatest challenge is to train project managers in dealing with the contractors on issues relating to the contract. What the contract says may differ when it comes to reality. The more the training to project managers, the better the implementation. Without a legal binding, project partnering could be risky. A clear and transparent work hierarchy and effective communication become vital to the success of such relationship. Mr. Lam believes the Tseung Kwan O Extension Project is a successful case in project partnering. According to our post-project research, all the contractors said the partnering relationship has been a success. Both sides believe it is a win-win situation, he said. Project partnering will be one of the strategies for MTRC. The complexity of the project will decide which of form of partnering relationship. 6
Here are some points to note in project partnering: Compromise on common objectives and avoid unnecessary disputes Strong leadership giving clear decisions and support to frontline staff; maintain high transparency Enhance management and communication Build up a favourable working environment, efficiency build on mutual trust and mutual respect Right person does the right job Crisis management is a shared responsibility Relations management is about enhanced communication 7
Trends Project Management in Australia and the Asia Pacific: Trends, Challenges and the Roles of Professional Associations In a time of globalisation and more liberlised trade and investment, increasing number and power of transnational corporations, rise of international institutions, increased mobility of the work force and emergence of regional blocs that are more powerful than independent nation-states, it is timely to reflect on what all this means to the project management profession and its importance to our region. For countries that are more economically and socially developed, such as Australia, more rigour is being demanded in managing business outcomes. The trends are the same in the public and private sector more expected of fewer resources. Commercial organisations are increasingly adapting management by projects principles due to their focus on prioritisation, selection of the right projects to achieve strategic objectives and realise benefits in terms of ROI, accountability, and ability to track changes in a controlled environment. The public sector on the other hand is centralising program offices and setting up project management centres of excellence in a bid to achieve better governance, and outcomes management aimed at delivering optimum legislative, social and economic gains within the constraints of budget, time and resource limitations. Emerging nations in the region share many of these trends: the need for prioritisation, governance, and the use of scarce resources. Project Management is being used as a tool for change, but not always to the best possible result due to the lack of mature infrastructure and supportive delivery processes as those available in developed nations. In few emerging nations the need for project management is more acute as it provides the means for aid and welfare agencies to provide the means for survival for many people. In these emerging nations in the Asia Pacific traditional project management practices are challenged due to environmental, contractual, business practice and cultural issues that characterise community development projects. Professional associations can play a big part in the progress of the profession in the region, particularly in developed nations where project management is a mature profession. Australia with its professional association, the Australian Institute of Project Management (AIPM), plays a integral role in the region due to its leading role globally with many initiatives including a 8
competency framework, public domain advisory services, and support to other nations in establishing national institutes. Article contributed by Dr. Neveen Moussa, National President of AIPM (on the right) 9
Continuous Professional Development (CPD) Precast Façade and System Form at Cyberport Residential Development, 20 March 2004 Our first site visit CPD event had been jointly organized with The Australian Institute of Building, HK Chapter [AIB(HK)] on Saturday 20 March 2004. The topic of Precast Façade and System Form in 4 Days Cycle for Cyberport Residential Development attracted over 50 attendants. They were University students, lecturers, institute members and industry participants. It was our honor to have invited Mr. K.T. Law, MHKIE, Project Director of Paul Y.-ITC Construction. Ltd. as our speaker. Mr. Law has over 25-year experience in the construction field specializing in large building construction projects. He has handled a number of large projects and gained his reputation especially in site supervision and progress planning and monitoring. He is known as one of the experts for precast façade and system form in the building construction field. Mr. Law elaborated on the reasons, methods and procedures as well as the pros and cons of using precast façade and system form in the construction industry. After a question and answer session, a site walk provided real sight information about the whole system. All the attendants gained and learnt (From the top photo) - Mr. K. T. Law illustrated the use of precast façade and system form during the site walk in Cyberport. - Group photo of all the participants - Mr. Jacky Tsang, President of HKIPM (on the left) delivered a token of thanks to Mr. K. T. Lam (on the right). more factual knowledge about precast façade and system form, which formed part of their knowledge base for application into their work or study environment. 10
Continuous Professional Development (CPD) Sustainability in Built Environment: Investing & Responsibility for the Future, 22 May 2004 Sustainability in Built Environment: Investing and Responsibility for the Future was the theme of our CPD seminar on 22 May 2004. Mr. K. S. Wong, Adjunct Associate Professor of the Department of Architecture, Chinese University of Hong Kong presented and illustrated series of local and overseas examples and experiences as well as recent initiatives on green architecture, highlighting our responsibility to inject green concepts in our construction projects for sustainability Mr. Jacky Tsang, President of HKIPM presented a complimentary gift to Mr. K.S. Wong, our guest speaker built environment and the well-being of our future generation. 11
Continuous Professional Development (CPD) Development Finance for Building and Infrastructure Projects, 31 August 2004 The seminar on Development Finance for Building and Infrastructure Projects held on 31 August 2004 attracted over 90 participants. It was the first joint CPD organized by HKIPM and the Hong Kong Institute of Engineers (HKIE). The extensive experiences of Mr. Patrick Lam, Assistant Professor of Department of Building and Real Estates, Hong Kong Polytechnic University (PolyU) on the area of project finance pushed the seminar into an excellent range. Participants found the content of this CPD dynamic, enlightening and extremely useful when many well-selected real cases and examples had been analyzed and demonstrated based on real-life experiences. From Left to right: Mr. Sam Ho (VP of HKIPM), Mr. Gary Tam (VP of HKIPM), Mr. Ben Lui (Chairman of HKIE Building Division), Mr. Patrick Lam (Guest Speaker), Mr. Francis Tong (Deputy Chairman of HKIE Building Division), Mr. Andrew Chow (Committee Member of HKIE Building Division) and Mr. Simon Cheung (Treasurer of HKIPM) 12
Continuous Professional Development (CPD) Project Management Professional Development Current Initiatives, 18 December 2004 Internationally the project management profession continues to grow and develop. The CPD session on 18 December 2004 focus on three areas, which are considered to be of growing importance in the field of project management. They are Project Management Organisational Maturity, Project Risk Management and Public Private Partnerships. Guest speakers include Mr. David Farwell and Mrs. Estelle Farwell, Directors of Panurgem Pty Ltd. and Mr. Tony Ma, Programme Director of Project Management of the University of South Australia. The project procurement session in the form of PPP offered a different perspective to all 50 attendees with fresh ideas for innovative procurement method. This is in contrast to the traditional method that they are familiar with. At the CPD, Mr. Tony Ma, Mr. David Farwell and Ms. Estelle Farwell shared their experience and professional knowledge with the attendees. They offered both practical and professional ideas about managing project risks and effective project delivery methods. This enriched all who participated (From the top photo) - Mrs. Estelle Farwell delivered a speech on PM Organisational Maturity - Mr. David Farwell s session on Project Risk Management - The seminar attracted the attention of all 50 attendees in this CPD. 13
HKIPM Activities President Signed Reciprocal Agreement With AIPM, November 2003 HKIPM and the Australian Institute of Project Management signed a Co-operative Agreement in Alice Spring, Australia in November 2003. The purposes of this Agreement are to increase and enhance the co-operations and communications with AIPM through the exchange of knowledge and regular conferences, seminar and meetings. There is also an agreement that HKIPM s member is able to enjoy a subscription fee Mr. Jacky Tsang, the President of HKIPM signed a reciprocal agreement with AIPM when he attended the Project Management Conference 2003 at Alice Spring. discount of AIPM and vice-versa. Under this agreement, HKIPM becomes a member of the Asia Pacific Federation for Project Management (APFPM), amongst establishments in 16 countries whose works are to achieve the goal of Globalization of Project Management leaded by AIPM. Annual General Meeting 2004, 18 June 2004 HKIPM s first Annual General Meeting was held on 18 June 2004 at the Kowloon Club. Mr. Jacky Tsang, the President presented his review report on the Institute's affairs while Mr. Simon Cheung, the Honorary Treasurer, gave a summary on the financial status for 2003/2004. Council of HKIPM hosted the Annual General Meeting 2004. From Left to right: Mr.Bob Tsoi (Honorary Secretary), Mr. C. C. Tai (VP-Membership), Mr. Theseus Leung (VP-Internal Affairs), Mr. Jacky Tsang (President), Mr. Gary Tam (VP-External Affairs), Mr. Samuel Ho (VP-Professional Standards) and Mr. Simon Cheung (Honorary Treasurer) 14
HKIPM Activities Project Management Seminar at Beijing Chem-Tech University, 2 December 2003 Samuel Wong and Theseus Leung were invited to be guest speakers for a seminar on Project Management at Beijing Chem-Tech University on 2 December 2003. The general principles and advantages of applying project management into practice was introduced and discussed. Mr. Samuel Wong, Council member of HKIPM introduced the principles and essential techniques of project management to students of the Beijing Chem-Tech University. 15
HKIPM Activities Annual Dinner 2004, 18 June 2004 Following the Annual General Meeting, the Annual Dinner 2004 commenced at 8:30pm. The President welcomed and thank you for the supports of all the participants who rendered continuous supports contributing to satisfactory membership growth. Mr. David Farwell, the event s distinguished guest speaker then introduced the Registered Project Manager (RegPM) program, a professional PM standard developed in Australia. This program helped to identify the project managers' skills and competency. He wished that HKIPM and its members to use RegPM' program to develop a recognition program Hong Kong project managers. Membership certificate presentation award was followed. Mr. Jacky Tsang presented Membership and Honorary Fellow Membership awards to members and Fellow members. Mr. David Farewell was the first member to receive the Honorary Fellow award. An award was presented to the council members to recognize their contributions in the year. Excellent entertaining performance was on show by brass quintets led by Mr. Alex Lee and his group. Lastly, the annual dinner was concluding with smiling faces from all attendants including the lucky draw winners - Mr. Patrick Lam, Mr. Louis Lai and Mr. Alex. Hung. (From the left photo) Mr. Jacky Tsang presented the first Fellow Membership Certificate to Mr. David Farwell during the Annual Dinner. Mr. Simon Cheung and Mr. Jacky Tsang welcomed our distinguished guests. 16
HKIPM Activities Opportunity of Project Management in China Property Development, 4 September 2004 Samuel Wong and Theseus Leung shared their China Project Management experiences during a seminar organized by the School of Continuing Education of the Hong Kong Baptist University. Recent Property development, process and policy changes in China Property Development and the related challenges facing Hong Kong Project Management professionals were discussed. This From left to right: Mr. Samuel Wong and Mr. Theseus Leung, VP of HKIPM shared their project management experiences of working in China with the attendees. 2-hour seminar attracted more than 40 participants who showed great enthusiasm in getting more first hand basic and structured information stepping into the China Property Development market. 17
Upcoming Events Date Events Enquiry 29 April 2005 Value Management CPD Seminar cpd@hkipm.org.hk 28 May 2005 Hong Kong Disneyland CPD Site Visit cpd@hkipm.org.hk 17 June 2005 AGM Meeting 2005 bobtsoi@hkipm.org.hk News HKIPM Enjoys 50% discount for AIPM Membership HKIPM member is entitled to a 50% discount off the AIPM membership fee. When HKIPM member pays AIPM membership fee, they must include their HKIPM membership number and a copy of their HKIPM certificate for verification. CIOB and AIPM Signed Co-operative Agreement The Chartered Institute of Building and Australian Institute of Project Management have reached an alliance agreement at June 2004. Both institutes commit to promote professional project management and management of construction processes through co-operation. Call for Papers HKIPM called for paper submissions to be published on future issue of Project Management for the knowledge exchange. For submission, please email our coordinator at editor@hkipm.org.hk. Recruitment of Co-workers HKIPM welcomed voluntary workers who are interested in helping out the institution s affairs. Please contact our Secretary at bobtsoi@hkipm.org.hk. 18
Classified University of South Australia Master of Project Management Graduate Diploma in Project Management 19
Classified AIPM Conference 2005 20