The Development Bureau today held the Project Cost Management Forum 2025.

Under the theme “Construction New Normal: Co-defining Cost-effectiveness”, the forum explored ways to enhance cost management and the cost-effectiveness of construction projects through optimised procurement strategies and the application of innovative technologies.

The forum drew, online or offline, over 400 representatives from government departments, engineering consultancies, contractors and professional bodies from Hong Kong, the Chinese Mainland and overseas.

In his opening remarks, Deputy Financial Secretary Michael Wong said the Government is pressing ahead with infrastructure investment, and that in the coming few years, the annual capital works expenditure will be about $120 billion, with an additional $30 billion set aside for small and medium-sized projects.

Mr Wong also thanked the bureau’s Project Strategy & Governance Office for promoting a culture of “Fitness-for-Purpose, No Frills” and helping to save about $190 billion across more than 540 projects over the past nine years.

Secretary for Development Bernadette Linn told the forum that the bureau is fostering a culture of cost-consciousness within the construction industry, and has implemented whole-process project cost governance at various stages of public works projects to ensure the careful use of public funds.

She said that with the rollout of major developments such as the Northern Metropolis and increased capital works investment by the Government, this cost-consciousness is more critical than ever.

The Government, she explained, takes an “ownership” mindset to comprehensively evaluate the cost-effectiveness of different proposals and considers factors such as site selection, usage, project scale, design and implementation plans upfront to formulate practical and cost-effective proposals.

The Government also embraces the integration of technological and industrial innovation to enhance productivity, and is keen to uplift the capabilities of a diverse construction talent pool, promote knowledge exchange and strengthen collaboration with Mainland and international partners.

Such efforts reinforce Hong Kong’s role as an international infrastructure centre, Ms Linn added.

At the forum, Mr Wong and Ms Linn witnessed the exchange of a Memorandum of Understanding (MOU) between the bureau and the Ministry of Finance of Singapore. It aims to enhance the exchange of professional knowledge and experience in managing and delivering infrastructure projects. It also facilitates collaboration between the two places, and improves project delivery models through digitalisation and innovative construction methods.

The MOU also strengthens the leadership and delivery capabilities of project leaders, thereby boosting productivity and performance in the construction sectors of both places.