OPTIONS ON STANDARD FEATURES OF HDB FLATS

Dr Wang Kai Yuen asked the Minister for National Development (a)what is the annual estimated dollar value of the work, such as doors and walls, including labour and materials, torn down and thrown out by owners in renovating their newly constructed Housing and Development Board homes; and (b) whether such wastage of resources can be avoided by allocating the flats earlier in the construction process and providing the potential owners with the option of accepting or rejecting HDB standard features as well as rebating any labour and materials savings to the owners.

Mr Teh Cheang Wan: (a) HDB flat owners who tear down internal walls and doors when renovating their flats form only a small percentage of new flat owners. An estimated 1.7% of new flat owners are observed to have knocked down part of the internal walls and 8.6% to have replaced internal doors with decorative doors. Over the last 5 years, the estimated value of such renovations is about $1.7 million per annum. This is less than 0.1% of the total construction cost of $2.5 billion per annum.

(b) Allocation of flats earlier with an option to accept or reject HDB's standard finishes just to cater for this very small group of owners may lead to higher cost for all new flat owners. If the option is given, HDB building contractors would be faced with different requirements for different flats and uncertainties over the final quantities required. Such uncertainties lead to higher tender prices.The co-ordination of the construction programme would be more complicated with higher administrative costs for the HDB and possible delays in completion of flats.

The impracticability of this proposal is borne out by the experience of HUDC. Previously, HUDC flats were allocated when the flats were midway through construction. Lessees were given the choice of a variety of finishes. Tremendous administration and site supervision problems were encountered leading to contractors jacking up their tender prices for subsequent contracts to cater for such problems. This scheme has now been abandoned.