‘Submarines don’t leak, why do buildings?’ Building quality, technological impediment and organization of the building industry in Hong Kong

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Habitat International

Volume 27, Issue 1, March 2003 , Pages 1-17

‘Submarines don’t leak, why do buildings?’ Building quality, technological impediment and organization of the building industry in Hong Kong

Author links open overlay panel Yat-HungChiang Bo-SinTang Show more Add to Mendeley Share Cite https://doi.org/10.1016/S0197-3975(02)00030-9 Get rights and content

Abstract

This paper addresses a naive question: why do the new housing units in Hong Kong always leak? Conventional responses to this question, including slack construction supervision, poor workmanship, low construction cost, tight building schedule, are only superficial answers. This study addresses this question within the context of technology development and industrial organization within the house-building industry. The local building industry is notorious for its poor use of automated technology. This is reinforced by the existence of a fragmented industry that relies widely and increasingly on the use of subcontracting and procurement of labour services. Low technological applications in the house-building industry are further institutionalized by the practices of local developers, university educators and the government. This study explains why an off-site, assembly line mode of mass production of buildings cannot take off, and why the assembly work has to rely on human dexterity rather than technological precision. It is argued that the relationship between technological impediment and fragmentation of the building industry results in a vicious cycle. Unless this structural relationship is broken, poor building quality and technological backwardness will continue to linger in Hong Kong.

Introduction

Water leaking—that sank the Russian Kursk to the Arctic seabed in August 2000—is definitely a matter of life and death for any submarine. But it is a commonplace problem for the new housing blocks in Hong Kong. Water leaks through external walls, around windows, and from roof ceilings. A confidential internal memo of a major local developer of a new downtown residential development reveals the magnitude of the problem. During five consecutive months after the move-in, water leakage amounted to 10% of over 70,000 complaints filed in by the homebuyers. The general problem is thus about building defects in new housing development, and water leakage is just one of them. In the first 7 months of year 2000 alone, the Hong Kong Consumer Council received over 340 complaints on newly completed flats concerning sub-standard building works. That was equivalent to about one complaint for 40 newly completed domestic units. These complaints probably represented the more serious cases in which even the remedial works of the developers had failed to fix the problems for the buyers.

Academic researchers are not slow in addressing the causes of building defects and in recommending the implementation of the ISO 9000 based quality assurance schemes (CIRC, 2001; Kumaraswamy & Dissanayaka, 2000; Tam et al., 2000; Kam & Tang, 1998; Tam & Tong, 1996; Kumaraswamy, 1996). However, by defining the problem as a quality blemish rather than a ‘technical failure’, as in the case of the building of a submarine, all these remedies fall short of tackling the issue right at its root and in a holistic fashion. Indeed, if submarines can be built to be waterproof under extreme water conditions, why can’t our new housing units withstand the mere rainfall? One may argue that it is unfair to compare housing construction with submarine building because the latter has better quality control and it costs more to build. However, this argument begs the key question, what prevents housing construction to have a ‘slightly’ better quality control in order to solve a problem as ‘tiny’ as water leaking? Submarines must not leak because they will not function. This is not a matter of quality control but requirement. Surely cost is an issue. While nuclear submarines built by superpowers are expensive, we also witness smugglers building their cheap and primitive submarines at some inconspicuous spots. Turning to Hong Kong's property, there has never been shortage of capital invested in the local property sector, making it one of the most expensive in the world. Therefore, quality control and building costs are never the root causes of our problem; they are phenomena to be explained.

On-site production, slack construction supervision and poor workmanship are factors contributing to inferior building quality, but they alone could not offer the full explanation in our case (Ball, 1988). Take the submarines as the reference. They are built in dockyards where the working conditions are not much better than a typical building site. Construction of the pressure hull barrel sections is no less labour intensive—a “miserable work” as described by Clancy (1993)—than that of concrete frame and external walls for buildings. Barrel section metal has to be heated to 64°C just to prepare it for welding. Each section is then hand-welded to the next “often on the verge of heat prostration, exhaustion, and dehydration”. Labourers have to perform this operation because few machines can perform to the standards of Naval Sea Systems Command (Navesa) and Director of Naval Reactors (DNR). To prevent water leakage, the most crucial procedure is the thorough checking of the welding by Navy inspectors armed with sophisticated X-ray machines. This case suggests that on-site construction alone does not necessarily lead to mediocre workmanship. A combination of technological precision and human dexterity are essential in ensuring productivity and quality of the output.

Housing units are less sophisticated products than the submarines, and can be mass produced with the use of automation. Many studies (Crowley, 1998; Veeramani, Tserng, & Russell, 1998; Gann, 1996) have turned to the manufacturing industries for technology transfer in improving construction productivity and quality. Since the Industrial Revolution, manufacturing industry has undergone various epochs of technological breakthroughs. Technological advancement has enabled the manufacturing industry to progress from the stage of mass production, which emphasizes economy of scale, to the next stage of mass customization, which promotes economy of scope. This novel idea has been applied in Norwegian naval architecture in which the gaps between the prefabricated parts for assembling the ocean-liners can be made to be no more than a few millimetres. There is thus no inherent contradiction between component standardization and design flexibility. Though pre-assembly is no panacea, such technology could definitely be adapted and adopted by the construction industry to improve building productivity and even national competitive performance (Gibb, 2001; Matsumura, 2001). For instance, Swedish firms are world leaders in prefabricated housing. Their prefabricated builder-woodwork industry had 14% of the total world exports in terms of export value in 1985 (Porter, 1990). A study of innovations in the construction sector of 15 other countries (including Japan, the US, the UK) also shows that in general “(i)deas from advanced manufacturing and information technology will migrate more rapidly to the construction sector and that novel approaches for site assembly will be developed” (Manseau & Seaden, 2001).

Poor housing quality exposes the fact that our local building industry is notoriously inert in adopting technology well proven elsewhere. The building construction process remains extremely labour intensive. It has continued to rely upon manual skills, rather than on technical proficiency and automation. Ironically, the local building industry is not a small sector in the Hong Kong economy. For the 3   yr between 1996 and 1998 (2000 Gross Domestic Product), the aggregate contract value of the building sector (US$33.6 billion) was about double the civil engineering sector (US$16.4 billion), which has relied disproportionately on mechanization. Furthermore, the residential sector made up almost 56% of the building sector in terms of contract values. The substitution of capital for labour remained sluggish even when the building industry was facing a diminishing pool of construction workers during the 1990s, and was lobbying the government for labour imports. Low technological proficiency also weakens the international competitiveness of Hong Kong contractors (Ganesan, Hall, & Chiang, 1996; Walker, 1995). In 1999, only one Hong Kong contractor was listed in the Top-225 International Contractors in the Engineering News Record (ENR, 2000).

Section snippets

Analytical framework

In this paper, we argue that the root of the problem lies in the whole structure of our house-building industry that institutionalizes and perpetuates the current practices of building construction. As Ball (1988) argues, the problems and the nature of the construction industry have to be explained by studying the dynamics and constraints of the institutional structures. Institutional factors are also found to be instrumental in affecting the productivity and competitive advantages of

Contractors: fragmentation of building industry

The Hong Kong building industry is characterized by decreasing productivity, low profitability and intense competition (Walker & Chau, 2000; Chiang et al., 2001). In 1996, there were altogether 18,510 building and civil engineering establishments (Report on 1996 Annual Survey of Building, Construction and Real Estate Sectors). They competed for works with a total value of US$15.1 billion (2000 Gross Domestic Product). The average value of contracts awarded to one firm was less than US$820,000

Developers: oligopolistic housing market

The nature of the land and property market has a strong impact in influencing the state of technology requirements of the building industry (Barlow (1996), Ball (1999); Barlow, 1999; Nicol & Hooper, 1999). In the private housing sector, there is a high concentration of the market share by a few developers in Hong Kong. About 70% of total new private housing was provided by seven developers between 1991 and 1994 (Redding (1996), HKCC (1997)). However, it does not necessarily mean that there is

Educators: manpower suppliers

Education provides an important link of the “system of innovation” (Manseau & Seaden, 2001). Universities provide the manpower training for the industry. However, locally as well as overseas, there is a trend of broad-based undergraduate education. It probably reflects “(t)he belief in the supremacy of management (including marketing, customer contact and management of R&D) over engineering (that) appears common in design and construction” (Nam & Tatum, 1997). The American Council for

Government: policy vacuum in building technology

As a major client and regulator of the building industry, the government plays a pivotal role in influencing the extent of mechanization and technological innovation in the building industry, which ultimately improves the building quality and output. Japan is the notable example in the government co-ordination and stimulation of R&D and innovative activities in construction (Manseau & Seaden, 2001). According to OECD (2001), Japan spent the most among 13 OECD countries in construction research

Conclusion

There is insufficient technology-push and demand-pull in the house-building sector of the construction industry in Hong Kong. Except for public housing construction that demands a certain extent of mechanization and industrialization, the local building sector generally has relied on labour-intensive construction methods. Such methods are deceptively cheap and tender prices low. Powerful private developers who aim at lowest construction costs, as well as the public sector that has been

Acknowledgements

The authors thank Ross King and an anonymous reviewer for their comments on the earlier draft of this paper. This study is based on a research project funded by the Hong Kong Polytechnic University. All views and the remaining faults in this paper are the responsibilities of the authors.

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