Highways Department signs contract for CKR works

This comprises the construction of buildings and is expected to cost about $5.67b.

The Highways Department (HyD) has signed the Central Kowloon Route (CKR)—Buildings, Electrical and Mechanical (E&M) works contract with Gammon Construction Limited, according to an announcement.

This contract is said to be HyD’s first contract adopting the New Engineering Contract (NEC) target cost option, which is expected to cost about $5.67b.

The works mainly comprise the construction of one administration building and three ventilation buildings located in Yau Ma Tei, Ho Man Tin and Kai Tak for the CKR. This will also include the provision of the tunnel ventilation system, air purification system, central control and monitoring system, fire services system and traffic control, as well as surveillance system.

However, the announcement noted that one of the contract’s critical issues is the complicated interface arrangement with ongoing contracts. Up to now, a total of seven works contracts including the one signed today have been awarded under the CKR project with a total value of about $28.9b.

Highways director Jimmy Chan said that there are three contracts worth $13.9b adopting the NEC target cost option, which contributes to about 50% of the total contract value of the CKR project. The NEC emphasises mutual trust and co-operation between the contracting parties.

This contract adopts the target cost option that provides incentives for the contractor to explore more innovative and cost-effective construction proposals and to resolve interfacing problems in advance with a view to saving costs and ensuring completion on schedule.

The CKR will be a 4.7km dual three-lane strategic trunk road in Central Kowloon linking the Yau Ma Tei Interchange in West Kowloon with the road network of the Kai Tak Development and Kowloon Bay in East Kowloon.

Traffic congestion in the road network in Central Kowloon is expected to be relieved with the commissioning of the CKR and the journey time between Yau Ma Tei and Kowloon Bay during peak hours will be reduced to about five minutes.