Jake's View | Hong Kong contractors' bid-rigging is behind rising prices
Industry players say their own costs are pushing quotes sky-high, but data taken from GDP figures does not support their claims
One contractor who asked to remain anonymous described three separate groups of contractors and surveyors that divvy up renovation projects through manipulated tender processes where winning bids are often three times market norms.
I am a victim. Our block is subject to a government slope upgrade order. There is nothing wrong with the slope. In fact, it stands in danger only from the way that the required heavy rock drilling will shatter the bedrock.
But it represents contracts for the contractors who get the work. Contractors have a functional constituency seat in the Legislative Council and the holder of that seat invariably votes in line with the administration on issues in which Beijing takes an interest. Some things are important.
So at present, we face a mandatory do-it-now order and the contractors on the short qualifying list are all rubbing their hands. Their quotes have gone up as much as 90 per cent over just a year. Yes, I am beginning to swing to the Occupy Central view of governmental matters.
But of course the contractors plead that their own costs have gone up sharply in recent years and it is not bid-rigging that is pushing these quotes sky-high. No, it is just the unavoidable course of events and they can do nothing about it.
Is this true?