We and Partners

Our supply chain mainly includes suppliers of building materials equipment such as concrete, steel, sand and gravel, as well as energy such as diesel and coal, services providers of processing, labour services and consultants, and subcontractors for construction projects.

We are committed to ensuring high standards of project safety and quality. In this process, suppliers’ quality, delivery, supply status, business performance, reliability, management, communication, etc. will have a close impact on the Group’s operations. Therefore, proper management of suppliers is essential. The Group follows the Procedures for Materials Procurement to standardise the suppliers’ inspection and evaluation procedures to ensure that suppliers meet project quality, safety, health and environmental requirements. The relevant departments also establish and maintain a list of suppliers as required. All approved suppliers on the list share the same tender opportunity; the Group’s tender ratio is 100% to guarantee openness, impartiality and fairness.

For existing suppliers, the Group conducts a comprehensive assessment of their performance each year and updates the list of suppliers. In addition to on-time delivery, quality, service and finance, the assessment criteria also include the safety and environmental performance. Suppliers are required to attain the scores of above 75% and 70% in safety performance and environmental performance. If a supplier fails to meet the comprehensive management requirements of the Group, it will be suspended from submitting tender and rectification should be made; if it fails to make improvements in the short term, the Group will remove it from the list and disqualify it from submitting tender.

We attach great importance to maintaining long-term relationships with suppliers and, through constant communication, strive to enable suppliers to establish a consensus on environmental and social risks with the Group. We provide channels to suppliers to reflect their needs and opinions to ensure all suppliers are treated fairly and reasonably. In order to collect the opinions and suggestions of suppliers more systematically, the Group invites suppliers to participate in the satisfaction survey through questionnaires every year. The survey covers the two aspects of corporate social responsibility (including waste reduction measures and integrity) and employee attitude at work (including behavioural performance, collaborative effectiveness and results).

Case Study

Management of the project contractor

Under the guidance of the Group’s policies and system documents related to supplier management, CSCIICL has established and implemented the Project Management System, which combines the requirements of local laws and regulations with the actual situation, and refines the process of the subsidiary’s management of the project contractor.

Written review

The Contractual Business Department of the subsidiaries arranges registration of contractors, provides the company’s supporting documents, as well as information such as business performance and management system; and reviews authenticity, legality, integrity and validity of the contractor’s documents and the contractors’ reputation and market share, product and service quality, turnover and performance in the last three years, and compliance and assurance capabilities in quality, environmental and occupational health with the Project Management Department.

On-site investigation

The manager of the subsidiaries in charge of contract arranges contract, engineering, finance and other relevant staff to conduct onsite investigation into the contractor to gain an in-depth understanding of the contractor’s technical equipment level, staff quality, construction practices and safety management on site. Approved contractors who pass through the investigation are included in the Qualified Contractor Register.

Contract fulfillment evaluation

The subsidiary conducts performance evaluation of the contractors every year. The evaluation includes: project quality, work efficiency, performance capability, cooperation degree, legal compliance and safety and environmental performance. Evaluation results are reported to the Project Management Department, which will decide whether disqualification is required. Contractors who fail the contract fulfillment evaluation are disqualified and shall not participate in any tender projects within one year. Previous steps of review have to be conducted again before it can submit tender again.

Promote Green Procurement

Reduce carbon emissions and wastage of resources to protect the environment

In order to achieve a sustainable society where development is in harmony with the environment, the Group is committed to reducing environmental impact throughout the building life cycle from design, procurement, construction, use to final disposal. In 2015, CSCHK formulated the Procurement Policy, which sets out the codes to be followed by each unit in conducting procurement activities. Green procurement is one of them.

In line with the policy requirements, the Materials Department of CSCHK has developed guidelines on the selection and use of various office and site materials and facilities, and further increased the use of environmentallyfriendly products during the year.