4 public building projects to cost HK$1 billion more due to ban on lead-in-water firms

A bidding ban imposed on four construction companies as punishment over a lead-in-water scandal will cost the public coffers HK$1 billion, the Housing Authority has announced.

The figure was confirmed today after the authority’s tender committee met to decide on the winners of tenders for five public housing projects – four to build flats and one to build a community centre.

Four out of these five contracts would go over budget to the tune of HK$1 billion in total, committee chairman Cheung Tat-tong said.

A budget overrun for new public building projects had been expected. On Wednesday, the committee issued this warning as it announced ruling out the four firms from seven tenders launched between March and last month.

However, their competitors that put up lower prices might not necessarily be chosen, which could effectively mean higher project costs, Cheung said at the time.