New renovation body will draw legitimate contractors back to market, sector says
Hong Kong’s new renovation monitoring body will encourage legitimate consultants and contractors previously plagued by intimidation from bid-rigging syndicates to return to the market, industry representatives have said, potentially lowering costs for homeowners in the long run. Renovation and construction sector players said on Monday that the new Building Maintenance Support and Services…
A new renovation monitoring body in Hong Kong aims to entice legitimate contractors and consultants back to the market, according to industry representatives. The Building Maintenance Support and Services Council, led by Financial Secretary Paul Chan Mo-po, plans to strengthen oversight of the tendering process through integrity and background checks by law enforcement.
This will ensure only law-abiding, qualified firms enter the market, potentially lowering costs for homeowners in the long run. Kenny Tse Chi-kin, vice-president of the Hong Kong Institute of Surveyors, stated that the council will help restore order to the building maintenance market and attract more legitimate firms after bid-rigging practices and triad infiltration drove them away.
The council was established to curb malpractice in the industry following the deadly Tai Po fire, which was partly caused by substandard renovation materials and signs of bid-rigging. About 650 applications were received for pre-qualification lists covering inspection consultants, supervision consultants, and contractors. Lawrence Ng San-wa, permanent honorary president of the Hong Kong Construction Sub-contractors Association, noted that intimidation had previously deterred competent contractors from bidding.
He emphasized that the government's regulation would provide new opportunities for contractors who faced unfair treatment in the past. Tse recommended a "two-envelope" tendering system, where a project's technical proposal would be evaluated first, followed by a price proposal only after meeting a minimum score requirement. This system aims to ensure projects are supervised properly and avoid situations where low-bidding contractors compromise safety and workmanship.
The council's paid services, costing a few thousand dollars per household, are seen as an unavoidable expense for homeowners to receive proper supervision. In the long term, the presence of more reputable contractors is expected to foster healthy competition and keep prices reasonable.
Written by urgent.news from South China Morning Post - Hong Kong's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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