The Jesse B Grove Report1 was commissioned by the Hong Kong Special Administrative Region Government to look at specific issues arising out of the General Conditions of Contract2 in use on Government projects in Hong Kong, where Government is the purchaser. A highly experienced and senior governmental committee chaired by Hon Henry Tang3 has been appointed to look at ways of modernising the Hong Kong construction industry and improving procurement quality and safety. It is intended that the report of Mr Tang’s committee should serve as a blueprint for the reform of construction in Hong Kong. This wide-ranging review may lead to a radical overhaul of the construction industry and its methods in Hong Kong.

Mr Tang’s committee paid a visit to London late last year where they were told about best-practice procurement, including PFI (Private Finance Initiative) and partnering methods, as seen by the UK Treasury and the Department of the Environment, Transport and the Regions. The United Kingdom models may become of overriding interest in Hong Kong if, as Mr Robin Whalley (a member of Mr Tang’s committee) is quoted as saying, the committee “…will now look at how Hong Kong can reform along the lines suggested by Latham and Egan” and will be “…looking at Movement for Innovation demonstration projects”.4

For this reason the changes in construction procurement which are underway in the United Kingdom may become of particular importance in Hong Kong as well as being considered elsewhere in the world.