Hong Kong contractors face removal for poor homeowner ratings after Tai Po fire

In response to a recent fire in Tai Po, Hong Kong's government is reforming the Urban Renewal Authority's 'Smart Tender' scheme with homeowner satisfaction surveys to combat bid-rigging and improve building maintenance. Chief Secretary Eric Chan Kwok-ki announced plans for a preselected list of qualified contractors, with poor performers facing removal after investigations.

On Saturday, Chief Secretary Eric Chan Kwok-ki announced that the Hong Kong government aims to improve the Urban Renewal Authority's 'Smart Tender' scheme by establishing a preselected list of qualified contractors. The scheme provides support to owners' organisations through an electronic tendering platform for procuring consultants and contractors to carry out building maintenance works. Owners applying for government maintenance subsidies must accept consultants and contractors assigned by the authority.

Chan said authorities would conduct surveys among homeowners to assess the performance of listed firms. 'We will conduct a survey to ask homeowners if they are satisfied with the work. If they are, the contractors will remain on the list, and if they are not satisfied and have complaints, we will investigate,' he told a radio programme.

These reforms follow a blaze in Tai Po and seek to enhance oversight and combat bid-rigging in construction sites.

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In the latest session of Hong Kong's inquiry into the deadly Wang Fuk Court fire—which killed 168 and displaced nearly 5,000—Urban Renewal Authority officials admitted their tendering system cannot prevent market manipulation or bid-rigging in estate renovations, citing limited resources and a policy of non-interference in homeowners' choices.

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Hong Kong authorities plan major reforms including criminalising bid-rigging and overhauling fire safety and property management laws after concluding an inquiry into the city’s deadliest fire in decades.

Jenkin Suen SC told an independent committee inquiry on Thursday that contractors’ deceit, inaction and deliberate omission caused the Wang Fuk Court fire in Tai Po.

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Home affairs chief Alice Mak Mei-kuen said Hop On Management Company is gradually issuing more refunds to owners at fire-hit Wang Fuk Court in Tai Po after organising over 800,000 documents.

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