SOME THINGS USEFUL FOR THE CONSTRUCTION INDUSTRY - QUALITY, SAFETY, HEALTH, ENVIRONMENT AND RISK

 

A sample of PDCA customized to the construction industry based on ISO 9001:2015

Here’s an example of Risk Assessment Guidelines in the Construction Industry, following the standards of ISO 31000:2018, ISO 45001:2018, ISO 9001:2015, and with elements of ISO 14001:2015. These processes are part of Integrated Management System that I developed to suit both clients and contractors - also for my training. Many have benefited from it including the authorities. (So if you see it anywhere - that's actually my masterpiece) If you have any questions or would like to customize the diagrams further, feel free to reach out.

Hope it will help Risk Assessors to understand how to conduct a proper Risk Assessment in the Construction Industry.

Malaysia Must Be Proactive in Preparing for Future Disease Outbreaks.

The COVID-19 pandemic underscored the critical need for robust preparedness against emerging infectious diseases.

Malaysia should by now implement a comprehensive and multi-agency approach to public health.

Among key strategies that I can think of right now are :

Enhanced Border Control and Surveillance - Stricter screening of incoming travelers and foreign workers, coupled with swift quarantine and isolation measures for those from affected regions.

Comprehensive checks on animals and plants, both local and imported, should also be enforced.

Strengthened Public Health Infrastructure - Improved surveillance systems, well-trained response teams, and universal healthcare access are essential. Continuous public education on hygiene and prevention measures is crucial.

International Collaboration - Fostering partnerships with neighboring countries and global health organizations is vital for information sharing, resource allocation, and joint research on vaccines, treatments, and diagnostics.

Clear Leadership and Coordination - To ensure effective implementation, clear lines of responsibility and authority must be established. The Ministry of Health, in collaboration with other relevant agencies such as Immigration, Customs, Agriculture, and Environment, should spearhead public health and disease control efforts. Addressing challenges in healthcare resource management and personnel allocation, as experienced during the COVID-19 pandemic, is imperative.

By adopting a proactive and coordinated stance, Malaysia can significantly bolster its resilience against future health crises.

DUE DILIGENCE ON TROUBLED COMPANIES - A SIMPLE GUIDE BY NIK ZAFRI

 BASIC PRINCIPLES OF DUE DILIGENCE (ON TROUBLED COMPANIES)

Due diligence on a troubled company requires a particularly rigorous and comprehensive approach. It involves delving deeper into potential risks and liabilities than a typical due diligence process.  See the table below - please expand further. (Remember : It's not as easy as it looks)

hashtag#DueDiligence hashtag#Audit hashtag#RiskAssessment hashtag#RiskManagement 

PROCESS-BASED AUDIT OR ELEMENT-BASED AUDIT?

After decades of experience in auditing, I prefer conducting "process-based" audits and assessments(as outlined core business process in my client's manual) rather than "element/clause-based audit" sequence. It makes me easier to assign specific to my auditor team based on their expertise and lots of time saving. This is a sample how I draw up my guiding principles/sort of tabular/checklist. You can fill in the blanks and expand the table to tailor it to your specific requirements or the industry you are assessing.

DRAFT GUIDELINE - DUE DILIGENCE FOR THE CONSTRUCTION INDUSTRY

You feel strong when you work in a strong team rather than working alone.

hashtag#duediligence hashtag#construction hashtag#constructionindustry hashtag#riskmanagement hashtag#auditor hashtag#qaqc hashtag#safety

I once collaborated with a team of professional consultants, including a Professional Engineer, a Chartered Auditor, a Legal Practitioner, Risk Management Consultant and I was put in charge of systems and methodologies including QA/QC/SHE elements.

This draft guideline (customized to the construction industry), which I devised, has proven instrumental in assisting numerous auditors tasked with conducting due diligence on large-scale construction projects, as mandated by regulatory authorities. To maintain confidentiality, specifics such as project names, authorities involved, team members' identities, and exact dates are withheld.

I hope this will serve you well, make amendments if you wish.

RISK & OPPORTUNITIES - BASIC CONCEPT - Nik Zafri

ISO 9001:2015 and ISO 45001:2017

PENCEGAHAN LEBIH BAIK DARI BERUBAT

Tengku Adnan

KUALA LUMPUR: Pusat Tahfiz Darul Quran Ittifaqiyah, Jalan Keramat Hujung, di sini, dilaporkan tidak memenuhi tahap keselamatan ditetapkan.

Menteri Wilayah Persekutuan, Datuk Seri Tengku Adnan Tengku Mansor, berkata pusat tahfiz berkenaan hanya mempunyai satu laluan keluar dan masuk menuju ke tingkat atas.

"Kita memuji langkah pengurusan pusat tahfiz yang menawarkan pendidikan percuma kepada pelajar yang terdiri daripada keluarga kurang berkemampuan, namun aspek keselamatan perlu diberi keutamaan.

"Berdasarkan tinjauan bersama Dewan Bandaraya Kuala Lumpur (DBKL), kita dapati wujud kesalahan kerana premis ini hanya mempunyai satu laluan dan ia berbahaya dari segi keselamatan," katanya selepas meninjau lokasi kejadian, pagi tadi.

Tengku Adnan berkata, pemilik dan pengurusan pusat tahfiz berkenaan juga didapati tidak mempunyai kelulusan Jabatan Bomba dan Penyelamat serta DBKL untuk menjalankan aktiviti pengajian tahfiz di premis berkenaan.

"Kadang-kadang bila kita tegur dan suruh tutup sesebuah premis, saya dan DBKL dimarahi dan dikatakan berlaku tidak adil namun sebenarnya kita tidak mahu perkara seperti ini berlaku," katanya.

Katanya, beliau sudah mengarahkan semua pegawai di Kementerian Wilayah Persekutuan dan DBKL menjalankan pemeriksaan ke atas semua pusat tahfiz di ibu negara dan Putrajaya, hari ini.

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Nota

Saya harap pembaca membaca dulu halatuju komen yang saya tulis ini. Ianya tidak berniat untuk menyalahkan samada pihak tahfiz mahupun pihak berkuasa. Yang sudah berlaku, sudahpun berlaku - yang telah pergi, telah pun pergi dan tidak dapat dikembalikan lagi.

Yang penting, apa langkah kita selanjutnya untuk mengelakkan perkara yang sama berulang - sebagai salah satu dari cabang usaha ikhtiar?

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Innaa lillaahi wa innaa ilaihi roo ji-'uun - Al-Fatihah.

Pertama saya ingin merakamkan ucapan takziah kepada keluarga yang terlibat. Semoga semua anak-anak ini digolongkan Allah SWT di kalangan syuhada. Saya harap dapatlah kaum keluarga redha akan tragedi ini.

Apa yang disebut oleh Datuk Seri Tengku Adnan Tengku Mansor memang ada kebenarannya. Namun pada saya, DBKL perlu bertegas demi keselamatan premis terutamanya yang berada di tengah-tengah bandaraya.

Atas dasar kemanusiaan, saya turut bersetuju dengan apa yang disebut oleh YB Menteri Wilayah mengenai perkhidmatan percuma yang diberikan oleh tahfiz berkenaan tetapi aspek keselamatan dan kesihatan pekerjaan perlu bersifat preventif serta bukannya "corrective". Ianya seolah-olah kita menanti bencana akan berlaku. Kita tidak boleh ada sikap "berserah sahaja" dan tiada usaha ikhtiar yang dilakukan untuk mencegah. Dan apabila sesuatu tragedi berlaku, kita ada budaya "menuding jari" (blaming culture)

Sudah tiba masanya, DBKL, JKKP, JAS, BOMBA dll yang berkenaan perlu duduk bersama dan memikirkan cara-cara proaktif seperti mengadakan "fire-drill", pemeriksaan berkala dan penilaian risiko bukan sahaja ke atas premis seperti ini tetapi ke atas semua premis. Ini kerana saya lihat, banyak tangga kecemasan (fire escape) di belakang bangunan telah dirobohkan, "fire door" yang tidak berfungsi, tangga kecemasan dalaman dijadikan stor barangan, penggunaan dapor gas dengan cara yang tidak selamat, tiadanya alat pemadam kebakaran (atau bertarikh luput atau ada tetapi tidak tahu digunakan), kesukaran akses kepada pihak BOMBA untuk memadamkan kebakaran, kesukaran akses untuk mangsa keluar, tiadanya penggera keselamatan, tiadanya pelan lantai, tiadanya "emergency escape route" dll.

Yang paling penting bila bercakap mengenai "preventive action" atau "risk management" ialah LATIHAN, BENGKEL, INDUKSI yang secukupnya perlu diberikan kepada semua pengusaha-pengusaha mengenai pentingnya aspek keselamatan dan kesihatan pekerjaan (dan alam sekitar) (SHE) terjaga.

Aspek SHE bukan sahaja perlu dijaga semasa premis dibina, ianya perlu dirancang semasa fasa rekabentuk, fasa tender, fasa pembinaan, fasa pasca-pembinaan, fasa penyerahan kembali tapak - MALAH perlunya susulan semasa ianya beroperasi.

TYPICAL PITFALLS IN CORPORATE GOVERNANCE - Nik Zafri

Lesson No. 1 : The CEO must be well-informed of any risks (both technical and financial) when deciding to invest in "new innovation"

Innovative ideas may sound "juicy" but potentially may also become a great threat to sound governance practices. Few gigantic motor corporations thought innovation was a good investment hence a lot of money went to Research and Development (R and D) to produce "innovations" to only knew later that they have breached the law.

a) The VW emissiongate/dieselgate

Quoting Ian McVeigh, Head of Governance at Jupiter Asset Management wrote in the Telegraph UK in 2015 : 

"The revelation that the car giant (VW) has been using so-called “defeat device” software to get its diesel cars to pass strict emission tests has been an unmitigated disaster. Since the scandal broke, the value of the company has fallen by around €30bn (£22bn)"

Source : https://commons.wikimedia.org/wiki/File%3AVW_stock_price_after_emissions_violations.png (Analysis by Dennis Bratland)

He wrote further about the significance of the CEO being well informed of investment analysis without the investors finding out about it first. Ian also mentioned about the corporate structure of German companies - having split boards - a supervisory and a management board making it potentially unclear of the "who is responsible or authorized for what?". UK however adopted the principle of putting the final responsibility with only one board.

The Volkswagen dieselgate or emission gate case started on 18 September 2015, when the US EPA issued a notice of violation of the Clean Air Act to German automaker Volkswagen Group for intentionally programmed turbocharged direct injection (TDI) diesel engines to activate certain emissions controls only during lab emission test. The programming caused the vehicles' NOx output to meet US standards during regulatory testing but emit up to 40 times more NOx in real-world driving. 

The CEO sportingly have since apologized to the customers, users and the general public. Later, he resigned.

Although Volkswagen is embarking on new policies and slowly regaining the trust of stakeholders and the car buyers, but the price they have paid is high.

Lesson No. 2 : Hiring "external party" to advise the Board can also lead to disaster.

I once heard somewhere that billionaire Warren Buffet; at some point; do not fully trust "external party's" judgement. He would rather make his own final decision.

Be careful when appointing external "subject matter experts" especially authorizing them to speak in a Board Meeting. If it is not necessary to hire, then DON'T! 

Many important decision cannot be made unanimously because the "so-called guru" says "NO". Ironically, the CEO agrees and subscribes to the "gurus" advice rather than seeking majority opinions from the experienced board members. (I've seen this happened before - it was a disaster!)

Hiring consultant assisting in corporate governance implementation is fine but these practices should be restricted to mid and support levels where CEO leads the initiative - not vice-versa. Board Members meeting must always be treated as CONFIDENTIAL.

Remember : Not everyone in the boardroom are smart guys!

Lesson No. 3 : There are always good rationales of why laws are implemented and enforced. 

Those who try to avoid the law are deemed to have "cheated" the government/ lawmakers and other stakeholders. Or put simply, betraying everyone's trust. 

One of the top cases that I've bumped into is misappropriation of funds (breach of trust) due to shareholders "manipulating" their unclear roles, responsibilities and authorities to serve their own ends. Other cases include : board ineffectiveness, unethical audit and risk practices, "unfair" pay, bad relations with external parties such as accountants and company secretaries. (aah yes, accountants and company secretaries can tell stories too - they know your secrets!)

We've witnessed how prolonged "conflict" between corporate entities and the lawmakers ending up in series of investigations and prosecutions. Long battles in the court of law not only endanger the company's reputation (even if you win the case) but the sad consequences that follow it - from people loosing jobs to reduction of market values.

Lesson No. 4 : Risk is always PROACTIVE

Never wait until problem arises. Learn the lessons from others who have failed. Take proactive measures by adopting Risk Management. (and don't just simply say....DO IT!) Proactive Risk Identification will provide you with a guide on Plan of Action (mitigation), brainstorming and develop a strategic plan. 

All these activities must happen prior to operation/project implementaton, assessed during the operation (comparing with the Risk Register for proactive risk identification stage) and mitigate during post-operation stage.

Adopt good practices of Risk Management but do not try to be too bold by taking unwanted risks!

Lesson No. 5 : Do What You Say and Say What You Do.

When you have given solemn promises or have put them in your customer charter or have addressed them in Manuals and Procedures - deliver them. Don't just file everything up and ignore them, or displaying what needed to be displayed and "that's it...end of story" - hoping that your PR will do the rest for you.

Sometimes, as a shareholder, you need to realize what you think is "impossible" can happen and do happen - whereby other shareholders (your own friends) can turn against you due to one or two angry customers who feel that you are not delivering what you have promised.

There are so many reasons of why ISO 9000 or Total Quality Management is introduced on the first place. Surely they are not to burden you but to help you.

Lesson No. 6 : Non-Conformance and Risks are opportunity for improvement

Don't scare auditors with cold bullying remarks such as :

• "I'm your paymaster",
• "Make it looks like there is more "loss" than "profit",
• "I know your boss",
• "Don't try to be too smart - remember Enron?" 

Remember, auditors are human beings too. If they feel threatened, despite the Non-Disclosure Agreement, they still can adopt the "Need to Know Basis" vs your "Transparency" - they can even get court-orders. Believe me, the end-results won't be good.

Treat auditors as friends who are trying to help you not destroy you. Treat any non-conformances as opportunities for improvement and not some "fault-finding activities". In the end, you'll be in every auditors "good book"

Don't make your company becoming one of the case study being discussed in front of other auditors in their association.

Lesson No. 7 : Be careful when setting limits on shareholder voting power.

One study (by Ken L. Bechmanna, Department of Finance, Copenhagen Business School and Johannes Raaballeb Department of Economics and Business, Aarhus University) shows that the bad corporate governance in the banks is visible in the shape of severe restrictions on shareholder rights, including voting and ownership ceilings, etc. These severe restrictions are quite unique, especially from an Anglo-Saxon perspective. In the U.S., ownership ceilings are not allowed and in a sample of 4,399 U.S. firms, only 24 had voting ceilings (see Commission of the European Communities, 2007). 

Similarly, voting and ownership ceilings are not among the 24 corporate governance provisions carefully examined by Bebchuk, Cohen and Ferrell (2009), who show that restrictions on shareholder rights lead to significant reductions in firm value.

Out of the six entrenchment provisions found to be value destroying, four of them set limits on shareholder voting power and the ability of a majority of shareholders to impose their will on the management.

And FINALLY!!

When you are having problems, try avoiding easy paths such as buyover, mergers, bailouts etc or worse - let yourself willingly to become "victim" to "hostile takeover" or ending up in government intervention. 

Even if you feel like selling your shares or the company itself, don't give up yet - try your best to first to solve your problems - who knows, you might succeed against all odds. 

Be transparent to your employees - let them know what is happening, many companies have gone down to earth and surprisingly, their employees have very good ideas on how to save the company. If the idea works, give these employees the rewards that they deserve!