Media

HKU Department of Real Estate & Construction launches online platform on Building Maintenance Cost (BMC) Database and Estimator

12 Mar 2015

 

Building neglect has been a long-standing problem in Hong Kong.  The presence of aging buildings lacking proper and timely repairs and maintenance poses potential threats to the safety and health of their residents, as well as members of the public.  According to a LegCo paper in 2010, the number of buildings in Hong Kong aged 50 or above was 4,000, and the number would increase by 500 each year (DEVB (PL-CR) 12/2010). These aged buildings have already exceeded their design serviceable life. The Buildings Department’s (BD) inspection after the collapse of a 55-year-old building in Ma Tau Wai Road on January 29, 2010 revealed that one in four buildings aged 50 years or above have maintenance and repair problems.  The building conditions survey carried out by the Urban Renewal Authority (URA) of 7,000 buildings aged 30 years or above found that 20% of these buildings were in dilapidated condition to various degrees.

In a recent blog article by the Secretary for Development to mark the Building Safety Week 2015 (March 14 to 20), the number of buildings in Hong Kong aged 50 or above has been updated to 5,900 and the number would increase by 580 each year. Currently there are 20,000 buildings aged 30 years or above, which will become 30,000 in 10 years’ time.

A team of academics from the Department of Real Estate & Construction, the University of Hong Kong, has been initiating and continuing research projects that are committed to ensuring the proper safety and conditions of buildings in Hong Kong since the late 1990s.  The Building Health and Hygiene Index (BHHI) and the Building Safety & Condition Index (BSCI) were among these research projects, which attracted public attention and impacted the local community.  It is widely acknowledged that building owners need to take the initiative to conduct regular inspections and carry out proper and timely repairs to and maintenance of their buildings.  However, building maintenance is usually complicated and expensive and repairs require extensive professional input.  As most building owners do not have the expert knowledge, experience, and time to professionally manage or maintain their buildings, they are vulnerable to exploitative methods such as bid-rigging and price inflation by unscrupulous consultants and contractors whom they consult when undertaking building maintenance projects.

The team has been trying to improve the transparency of building maintenance costs and making available maintenance cost information for reference and benchmarking.  However, the collection of cost data from the maintenance market has been very difficult and the accuracy, reliability, level of detail, and breakdown of the reference cost information that is collected are in doubt.  Such information, if available from reliable sources, can provide building owners with a useful reference or benchmark for early cost advice, cost planning, and tender bid assessment when carrying out building maintenance projects.

Results of a Pilot Project

In 2014, the Independent Commission Against Corruption (ICAC) commissioned, through HKU’s technology transfer company Versitect, the research team to conduct a pilot study on the above issue. The researchers, led by Professor K.W. Chau, had access to the building maintenance cost data of 426 Operation Building Bright (OBB) projects that were managed by the Urban Renewal Authority (URA) and Hong Kong Housing Society (HKHS) between 2009 and 2013.

After a detailed analysis of the dataset, it was found that the total number of units and the number of storeys in a building were the two most significant factors that affected the final maintenance cost of the OBB projects in the sample.  A statistical model was developed to make use of these two readily available building characteristics to produce a quick indicative maintenance cost estimate.  Based on this model, the estimated cost of repair and maintenance projects under the OBB since 2009 (adjusted to 2014 cost) was found to be approximately HKD3.9 million (or HKD56,000 per unit), for a typical older building of 12 storeys and 70 units.  This was, however, not a precise estimate of maintenance cost, as factors such as building condition, specification of the materials, workmanship, etc., were not taken into account.  For example, the model suggested that the actual maintenance could exceed HKD5.3 million, although there was only a 16% chance of this happening.

For the powerpoint presentation at the conference, please click.

For media enquiries, please contact: Ms Trinni Choy (Assistant Director (Media), Communications and Public Affairs Office) tel: 2859 2606 email: pychoy@hku.hk  or Ms Melanie Wan (Senior Manager (Media), Communications and Public Affairs Office) tel: 2859 2600 email: melwkwan@hku.hk