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URA unveils HK$5 million pilot scheme to tackle bid-rigging in building repair work in Hong Kong

Scheme will feature new electronic tendering platform to help reduce risk of manipulation and interference in tender procedure

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The pilot scheme is expected to cover about 50 projects. Photo: Nora Tam
Peace Chiu

The Urban Renewal Authority has revealed the details of a HK$5 million pilot scheme aimed at tackling bid-rigging in building repair and maintenance work for private buildings.

This came after Chief Executive Leung Chun-ying mentioned the scheme in his policy address last month, among various measures to reduce the risk of bid-rigging.

Speaking at a media briefing on Friday, Lawrence Tang, head of URA’s building rehabilitation division, said the Building Rehabilitation Facility Services (Pilot Scheme), set to be launched in April or May this year, would feature a new electronic tendering platform for participating owners’ corporations to issue tender documents for engaging contractors.

READ MORE: Hong Kong subcontractor who revealed bid-rigging scheme remanded into custody after being out on bail

He explained that the platform would help reduce the risk of manipulation and interference in the tender procedure as the identity of bidders would be kept confidential – with invitation, submission of expression and issuance of tender documents done through this platform – until the tenders are opened by an independent professional.

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An independent adviser would also be engaged to offer third-party advice to participating owners’ corporations on the general scope of works that needed to be carried out and the estimated costs of such works, Tang added.

He pointed out that this would help the owners’ corporations to assess whether the tender prices received for the works were reasonable.

READ MORE: HK$45m in bribes – Building sub-contractor admits role in bid-rigging plots at Hong Kong private housing estates

Tang said the scheme would also include a DIY toolkit, which is designed to guide participating owners’ corporations in organising building rehabilitation works. Some examples of what one could find in the kit include sample contracts and tips and instructions for procurement of contractors to undertake the building rehabilitation works and consultants to oversee the works.

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