Members’ Motion： “Improving the management of building maintenance works”
President, I would like to thank Mr CHONG Ho-fung for proposing this motion, as well as the other four Members for proposing their amendments. The problem of ageing buildings has a bearing on whether thousands of households can live and work in peace and contentment, as well as directly impacts on urban safety and the city’s overall image. While combating illegal activities and plugging loopholes in the system, we should acknowledge minority owners’ limited ability and resources when faced with complex maintenance works, as well as the trend of ever-increasing demand for maintenance works. Therefore, I am glad to see that the Government is strengthening its role in guidance, support and supervision to promote the management of building maintenance works. This involves shifting from the current model where owners take the lead and the Government exercises regulation passively, towards a collaborative model where the Government assumes the role of a professional gatekeeper and owners participate collectively. This will serve as the foundation for taking forward a series of institutional reforms.
The Government has implemented the Mandatory Building Inspection Scheme under which buildings over 30 years of age are required to undergo inspection every 10 years. The original intent is to safeguard public safety, which is worth recognizing. Yet, during the process of implementation, it is difficult for many minority owners to devote sufficient time and attention to supervision owing to their busy work schedules or a lack of relevant professional knowledge. This has resulted in generally low participation rates among owners on the whole, thus giving bid-rigging syndicates opportunities to take advantage of the situation. They would target the few owners willing to participate through lobbying or pressure tactics. If other owners remain unaware, the risk of bid-rigging would then increase.
I agree with the relevant proposals put forward by several Honourable colleagues. As mentioned in yesterday’s debate, Hong Kong currently does not have any specific legislation targeting bid-rigging, with relevant prosecutions being initiated by invoking the Competition Ordinance and the Prevention of Bribery Ordinance (“POBO”). I have previously served as a member of the Operations Review Committee of the Independent Commission Against Corruption (“ICAC”) for six years. During my tenure, I observed that there were an extremely large number of corruption complaints which involved building maintenance works. While ICAC would follow up on every non-anonymous complaint, providing evidence of bid-rigging activities is no easy task and this often affects the effectiveness of prosecution. I suggest that the Government must expeditiously enact a dedicated legislation for combating bid-rigging by drawing reference from practices adopted in other countries and regions, so as to address the limitations of existing legislation, including POBO, in regulating such acts. At the same time, reference should be drawn from the practices adopted in places such as Singapore to establish a sufficiently attractive reward mechanism for whistleblowers. This should include substantial financial incentives and enhanced arrangements such as protection for informants, thereby encouraging persons in the know (such as employees of bid-rigging companies) to provide crucial evidence proactively.
During the transitional period before the enactment of a dedicated legislation, implementing the aforesaid measures should help to enhance the efficiency of investigation and prosecution as well as the combat of bid-rigging. The entire process of maintenance works should also be subject to systematic management, with the professional roles of the third party being appropriately strengthened. The Government can introduce the mandatory implementation of maintenance works management plans, authorizing registered and authorized persons to evaluate proposals provided by consultancy companies and contractors on content including the risks, construction methods, estimations of the construction costs, as well as proposing the standards for final acceptance inspection.
Regarding the management of funds for maintenance works, the project funds should be placed under joint custody of the owners’ corporations (“OCs”), contractors, and authorized third-party bodies, which is equivalent to the monitoring role of banks in construction loans. Besides, reference can be drawn from the concept of “Money Safe” of banks nowadays, whereby funds for maintenance works should be “easy to enter but difficult to withdraw”. Payment should be made in batches only upon the completion of high-quality work progress, so as to prevent contractors from becoming emboldened after receiving payment.
At the same time, a publicity mechanism in respect of contractors’ performance should be introduced, so as to provide owners with some genuine references for selecting companies to partner with. The Government should establish an electronic platform showing the contractors’ performance ratings, so as to provide a ranking of specific contractors. Upon completion of each maintenance works project, minority owners should be required to rate each contractor on such aspects as safety, quality of works and quotations. In particular, incidents occurred during the process and their handling should be specifically documented. The platform should also be open and transparent. I believe this would give the result of encouraging and monitoring the contractors, enhancing transparency of information, minimizing the possibility of minority owners being sidelined due to collusion between OCs and contractors.
President, I am well aware that the relevant reform is a task of paramount significance. Nevertheless, “a journey of a thousand miles begins with a single step”. I hope the Government will expeditiously establish a pragmatic and long-term mechanism to ensure that maintenance works are of high quality and efficiency, thereby enabling the public to live without any worries and rest assured.
With these remarks, I support the original motion and all the amendments. Thank you.