Hong Kong building maintenance and fire safety reforms

Following an independent inquiry into the Wang Fuk Court fire, the Hong Kong government proposed criminalizing bid-rigging in large-scale building maintenance and renovation tenders. The proposal seeks to amend the Competition Ordinance to allow for prison sentences of up to 10 years and significant fines. To target organized crime, the government intends to include these offenses under the Organized and Serious Crimes Ordinance, enabling law enforcement to freeze assets and confiscate proceeds. A multi-agency task force involving the police, the Independent Commission Against Corruption, and the Competition Commission would be established to investigate bidding networks.

Subsequently, the Hong Kong Bar Association released a research report proposing approximately 50 amendments to at least six laws. This report suggests a dual-track system for criminalizing bid-rigging and recommends a “double envelope” tender system to increase transparency. Other proposed reforms include a safety penalty system for contractors, mandatory conflict of interest declarations for professionals, and shared responsibility between property management companies and owners for fire safety equipment maintenance. The Association also suggested a five-year renewal system for fire service installation contractors.