A study of the problem of bid-rigging in relation to building maintenance works in Hong Kong

Abstract

With a growing number of aged buildings which need to undergo maintenance works in Hong Kong, disputes concerning building maintenance works has become increasingly common in recent years. There have been contentions that bid-rigging activities involved during the tendering process of these projects. Bid-rigging in building maintenance works is a social problem as all buildings will become aged and required to carry out building maintenance works. It is illegal and harmful to the society as the affected group of people would be extensively covering all types of occupants in terms of cost and living environment. In the event that bid-rigging arises during tendering process of the building maintenance works, flat owners not only have to pay additional amount of money out of the exorbitant building maintenance cost, but they have to bear the risk of works which cannot be properly done. In addition, it implies various parties have participated in the tendering process enabling the building consultants or building contractors to win the maintenance contract fraudulently. Such incidents also reflected that there may be grey areas in legislation which enhances the emergence of bid-rigging in building maintenance works. Although there are various kinds of supporting schemes from the government and related organizations to assist building owners to carry out maintenance works, the effectiveness of the schemes remain unknown regarding the increasing disputes arise from building maintenance works and bid-rigging. The study would have a deeper understanding for the causes and effects of bid-rigging in relation to building maintenance works in terms of building condition, assistance and policies provided by the government and relevant organizations to assist building owners in Hong Kong. These include technical and financial assistance on building maintenance works, education for prevention and detection of infraction in collusive behavior, and legislation and prosecution on alleged crimes. In the final part, recommendations would be made to avoid bid-rigging in building maintenance works.

The goals of the study is to identify the cause of the problem of bid-rigging in building maintenance works in Hong Kong and make possible suggestions to prevent the bid-rigging in building maintenance works.