We and Partners

  • The Group’s business requires close collaboration with many suppliers and subcontractors whose participation is essential to its sustainability. In 2020, the Group had 1,498 suppliers, who were contracted for projects or subcontracted processes to provide a wide range of construction materials, including concrete, steel, finishing materials, site equipment, plant equipment and fuel, as well as a variety of services such as labour, design, security and consulting.

    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.

    The Group has been encouraging its suppliers and subcontractors to improve their environmental performance. In 2020, CSHK actively promoted the Hong Kong Awards for Environmental Excellence (“HKAEE”) and encouraged its business partners of the APM and BHS Tunnels on Existing Airport Island to enter the awards competition, joining the ranks of environmental protection. It was selected as the Outstanding HKAEE Promotional Partners.

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. To improve the sustainability of its supply chain, CSHK has updated its Procurement Policy and Supplier’s Code of Conduct in recent years to manage and enhance cooperation with environmentally conscious suppliers.

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 environmentally friendly products during the year.

In addition, there is a Subcontractor Sourcing Decision Committee in CSC Macau, where senior management evaluates and reviews subcontractors and suppliers. They are evaluated for quality, safety, health and environmental performance before included in the list of suppliers. The Group gives preference to suppliers with outstanding ESG performance or ISO14001 Environmental Management System and OHSAS18001/ISO45001 Occupational Safety Management System, aiming to work with these partners to build a sustainable future.

Supply Chain Management

Under the guidance of the Group’s policies and system documents related to supplier management, CSCIICL has established and implemented the Project Management System, Procurement Policy and Supplier’s Code of Conduct, 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.

CSHK assesses and updates qualified suppliers annually and conducts inspections of key suppliers. The Procedures for Material Procurement outlines the procedures to select the right suppliers and products by taking into account safety, health and environmental considerations.

Depending on opinions from the sites and relevant departments, CSHK will determine the action to be taken against underperformed suppliers, including the issuance of a written warning letter, suspension from bidding, or removal from the approved list. Suspended suppliers will only be considered for reinstatement after a sanction period, and suppliers will have to explain their improvement, assurance measures and monitoring methods.