Procurement and Supply Chain
Hopewell Holdings Limited
Sustainability Report 2010/11 37
We conduct spot inspections and annual assessments of our
qualified contractors and suppliers on a random basis. We have
developed six key factors to evaluate our contractors in terms of
knowledge, skills, quality, co-operation, safety, and cleanliness. We
implement a system whereby potential contractors can gain additional
points if they have internationally recognised safety systems in place,
such as OHSAS 18001. Annual assessments are conducted to measure
our contractors’ performance and their ranking will affect the type of
projects granted by the Group. In the case of any violation of policies
or regulations, we issue warning letters to contractors. Site supervisors
will have to rectify any conditions deemed dangerous or inconsistent
with statutory requirements and specifications in the agreements.
Contractors will be removed from our database after three warning
letters have been issued.
For our hotel supplies, such as toiletries, towels, and facilities
maintenance services, our suppliers and contractors are subject to
the same policies and codes of conduct applied to our property
and facility management operation.
Property and Infrastructure
Development Projects
For property and infrastructure construction projects, contractors
are mainly made up of professionals (such as architects, civil
engineers and mechanical engineers) who have their own
stringent accreditation and standards in place. However, they
are also governed by the terms and conditions specified in our
contracts with them, which outlines our expectations on their
quality of work, environmental performance, occupational safety
and labour practices and all other statutory requirements (such
as the prohibition of child labour and minimum wage payments).
We ensure contractors are aware of our key performance indicators
related to energy efficiency and labour standards. We conduct spot
inspections at construction sites and have adopted a ranking system
to rate our contractors based on the performance assessment factors
we set and other specifications listed in our contracts to them.
For Phase III of the Western Delta Route currently under construction,
we have tendered out 100% of the contracts, which include a “Safety
Production Agreement” (
安全生產合同
) and “Warranty of Wage
Payment for Construction Site Workers” (
建設工程農民工工資
支付保證書
).
Actions for 2011/12
• Develop a group-wide policy for responsible procurement
and supply chain practice
Coal-fired Power Plant
We ensure our coal comes from large and reputable suppliers which
demonstrate good safety records (for details, please refer to the Case
Study: Promoting Clean Coal Technologies and Responsible Labour
Practices). In selected major suppliers for the Heyuan Power Plant
have put in place effective management systems to monitor social
and environmental practices along their own supply chain.