Dev. chief: maintenance support authority to prioritise 600 buildings

After the Wang Fuk Court blaze, the government is establishing the Building Maintenance Support and Services Authority to provide end-to-end guidance and support to property owners carrying out building repairs and renovation.

It sets sights on eradicating industry issues including corruption, bid-rigging and corners-cutting practices.

Secretary for Development Bernadette Linn said the body will give priority to some 600 buildings that have yet to undergo inspection.

The government targets to set up the Building Maintenance Support and Services Bureau within two months -- to gradually take over the Urban Renewal Authority's building maintenance subsidy schemes in a bid to address the longstanding woes in the city's building repair industry.

Secretary for Development Bernadette Linn said Chief Executive John Lee will soon appoint the bureau's board of directors which will then recruit staff. Authorities are also reviewing applications for its pre-qualified list. So far, about 150 applications have been received from consultants for preliminary building inspections and another 150 from supervision consultants. Some 350 contractors have also signed up.

Speaking on a radio programme, the development chief said she finds the sign-up tally "encouraging"

Linn noted the city has about 1,800 buildings that require major renovation works. Once the support bureau is set up, priority will be given to handling the more than 600 buildings that haven't yet undergone inspection.

When asked what they would do when existing contracts and arrangements need to be transitioned, Linn says the bureau will help property owners who wish to switch contractors. But if they prefer to stay with their existing contractors which are not on the list -- the bureau will "help keep an eye" on their conduct too, Linn says.

The administration has earmarked 300 million dollars for the maintenance and support bureau. 200 million dollars of the reserved amount will be for subsidies and fee concessions for property owners. Financial Secretary Paul Chan earlier said the funds can be topped up if necessary.

While the maintenance support bureau sets up a pre-qualified white list -- with the consultants and contractors' backgrounds and conviction records examined, 350 contractors have joined the pre-screening list, accounting for about one-third of the firms in the industry. Some industry representatives said many are taking a wait-and-see attitude.

The Hong Kong General Building Contractors Association said they all know how complicated the industry environment was, including criminal activities and safety woes. And industry players are observing whether the overhauled system will provide a safer environment for maintenance works.

The association also noted the bulk of the industry now comprises small and medium-sized enterprises, so stricter document review and legal regulations may entail heftier costs. They hope the government could fine-tune the bidding mechanism -- so it won't just be larger enterprises who can drive down the costs and win the tenders.