No guarantee building contractor lists can be ‘100% clean’: Chris Tang

The proposed contractor lists are meant to screen out criminal elements before companies can bid for building-maintenance projects. But Secretary for Security Chris Tang said authorities cannot promise that every listed company will be completely clean. Hidden links can be difficult to detect.

Police and the Independent Commission Against Corruption will look for clues, including triad affiliations and previous arrests for bid-rigging. Even with those checks, Tang said some bad actors might remain concealed or operate beyond the agencies’ control.

Tang argued that officials should be judged reasonably if they make genuine efforts. He rejected a culture in which staff avoid decisions simply to prevent mistakes. The government will therefore rely on vetting, intelligence-sharing and enforcement, while accepting that screening cannot provide an absolute guarantee.

A pre-qualified contractor list is a register of companies and consultants that have passed screening before competing for renovation work. Hong Kong plans to use these lists through the Building Maintenance Support and Services Council, a new non-profit body supporting homeowners.

The council will vet applicants with help from police and the Independent Commission Against Corruption. Only companies on the lists will be eligible to submit tenders under the new support service. This creates a controlled entry point before a project’s bidding stage.

The purpose is to reduce the opportunity for criminal groups or bid-rigging syndicates to influence building repairs. It also aims to give homeowners access to more credible professionals. The system cannot guarantee perfect screening, Tang acknowledged, but it is designed to make participation safer and oversight stronger.

The deadly fire at Wang Fuk Court changed the government’s approach to building maintenance. A judge-led independent committee investigated the incident, which claimed 168 lives, and found that the Fire Services Department shared responsibility with three other government bodies.

In response, authorities announced a package of measures, including the Building Maintenance Support and Services Council. The council will help homeowners tender renovation work and will pre-qualify contractors and consultants with assistance from police and the ICAC.

The response also includes proposed legislative amendments. They would criminalise bid-rigging and target related conduct such as price-fixing and market-sharing. A joint task force involving police, the ICAC and the Competition Commission will share intelligence and conduct enforcement. The government says the package will strengthen oversight and overhaul major building maintenance.

Police and the Independent Commission Against Corruption will examine warning signs before contractors enter the pre-qualified lists. The aim is to identify companies connected to criminal networks or previous manipulation of renovation tenders.

Tang specifically mentioned possible triad affiliations and records of earlier arrests for bid-rigging. These are examples of the “clues” enforcement agencies would consider when deciding whether a company is suitable. The agencies will work with the new Building Maintenance Support and Services Council.

The checks are intended to stop bad actors from reaching homeowners through the government-supported tender system. However, Tang warned that criminal elements might be convoluted and hidden. Intelligence-sharing among police, the ICAC and the Competition Commission is also planned, allowing agencies to combine databases and identify syndicate masterminds earlier.

The proposed penalties are substantial. Individuals and companies could face up to 10 years’ imprisonment and a fine of HK$10 million. Alternatively, the penalty could be three times the gains from the offence or 50 per cent of a company’s local turnover for each year of the offence.

The law would cover bid-rigging, price-fixing, market exploitation and output restrictions. The amendments would place the new offence under the Organised and Serious Crimes Ordinance and the Independent Commission Against Corruption Ordinance, strengthening enforcement powers.

Three agencies will cooperate through a new task force: the police, the Independent Commission Against Corruption and the Competition Commission. They will share intelligence, issue risk alerts and conduct joint operations. The government expects the legislation to pass by April next year, although the article does not state the final outcome.

If the rules work, homeowners could face less risk from criminal groups when choosing renovation contractors. A screened tendering pool may also make the process clearer and protect the public interest. The government wants reputable professionals to feel able to re-enter the market.

Renovation companies would face stronger checks and tougher consequences for collusion. Firms that operate legitimately could benefit if bad actors lose their control over a market described as lucrative and monopolised by bad people. Criminal companies could face prosecution, fines or imprisonment.

Greater competition could reduce prices that are inflated by collusion or market control. However, the article does not promise lower renovation bills or give a price forecast. It says the reforms aim to safeguard fair competition, raise standards and strengthen oversight. Their real effect will depend on enforcement and whether hidden offenders are successfully removed.

Bid-rigging happens when companies coordinate instead of competing honestly for a contract. They may arrange who wins, submit misleading competing bids or otherwise manipulate the tender process. The result is a bidding exercise that looks competitive but is not genuinely open.

Price-fixing makes firms agree on prices rather than setting them independently. Market-sharing divides customers, projects or territories among companies. The article also names market exploitation and output restrictions as related anticompetitive practices. These arrangements can limit choice and preserve inflated prices.

That is why the government wants bid-rigging to become a criminal offence. The proposed law would target both individuals and companies, with penalties reaching 10 years’ imprisonment and HK$10 million. A joint task force would combine police, ICAC and Competition Commission powers to uncover syndicates and protect fair competition.