The Housing Authority yesterday selected two contractors to finish the work begun by Dickson Construction at three sites which it took over in February due to serious delays in work.
The new bids are 17 per cent to 19 per cent higher than originally bid by Dickson.
Patrick Lau Sau-shing, who chairs the tender committee under the authority, said the government would ask Dickson to pay the extra costs of $80 million or more - which were mainly because of an increase in material and construction costs.
The authority has also asked the two contractors to hire at least 80 per cent of the workers used by Dickson's subcontractors at the sites.
Dr Lau said the government would closely monitor work to avoid further delay to the projects.
The three sites - the Shek Pai Wan redevelopment project in Aberdeen and two public housing projects in Fanling - involve more than 7,000 flats and are worth more than $1.3 billion.
Dickson won the contracts in 2003 and 2004 but completed less than $500 million of work due to shortages of material and manpower. The completion dates of those projects were then delayed to 2007 and 2008 respectively.
More than 600 workers hired by Dickson or its subcontractors are still appealing to the Labour Department for nearly $10 million in unpaid wages.