Tendering ban imposed on four contractors linked to Hong Kong's lead-in-water scandal
Contractors ruled out of projects to build 18,000 flats, but punishment may raise costs
Four companies have been punished for the lead-in-water scandal at public housing estates by being barred from seven new projects to build 18,000 flats.
But the Housing Authority is still pondering whether to suspend them from submitting tenders for other developments, as doing so may increase costs and delay the supply of new flats.
The sanction was announced yesterday by Cheung Tat-tong, chairman of the authority's tender committee, after a four-hour special meeting behind closed doors.
It came a week after a review committee of the authority, which was also chaired by Cheung, concluded that soldering materials on fresh water pipes were one of the main sources of excessive lead found in supplies at public housing estates.
"Since we won't consider these companies' bids, we may not always be able to pick the proposals that ask for the lowest prices … An extra HK$1 billion of public money may be spent as a result," Cheung said after the meeting.
The contractors are China State Construction Engineering (HK), Yau Lee Construction, Paul Y Engineering Group and Shui On Building Contractors.