Regulation of contractors tightened

December 15, 2022

The Development Bureau today said that it has promulgated the strengthened regulating measures over approved contractors which have serious incidents or are convicted of violating site safety laws.

 

The bureau has issued a technical circular and the updated Contractor Management Handbook and disseminated them to works departments and the industry for that purpose.

 

Being the party to procure the construction services on public works, the bureau said it could impose regulating actions against contractors under the List of Approved Contractors for Public Works and the List of Approved Suppliers of Materials & Specialist Contractors for Public Works.

 

The actions include suspending contractors from tendering or even removal from the aforesaid lists, pursuant to the Contractor Management Handbook.

 

On tendering of public works contracts, the bureau’s decision to suspend contractors from tendering is not confined to future tender exercises, but also applicable to tender exercises with procedures initiated but not concluded.

 

In other words, tenders submitted by contractors will not be accepted if they are suspended from tendering due to poor site safety performance at any point of time between the tender closing date and award date.

 

When a contractor has systemic deficiencies in an operation of a serious incident in a particular works category, regulating actions could be imposed not only against the contractor in the particular works category concerned but also other works categories under which the contractor is listed.

 

The works categories under which contractors are regulated are clearly shown on the Development Bureau webpage to enhance transparency.

 

Additionally, the Buildings Department will regulate through a system of registration for contractors, no matter if a contractor is qualified to compete for public works projects or not. The regulating act includes consideration of whether a registration should be accepted or renewed and possible disciplinary action.

 

On renewal of registration, if an applicant has a record of suspension from tendering for public works or works of the Housing Authority for factors related to site safety, technical competence and management ability, or a conviction record for offences involving serious labour safety, the application will be referred to the Contractors Registration Committee for assessment to assist the department in making a decision.

 

To strengthen the regulation of registered contractors, the department will also consider referring an application to the committee for interviews and assessment when a registered contractor is involved in serious labour safety incidents at a construction site, regardless of whether the contractor has been convicted.

     

Furthermore, under section 13 of the Buildings Ordinance (BO), the department may bring to the notice of a disciplinary board in relation to a registered contractor if the contractor has been convicted by any court of an offence relating to building works or has been negligent or misconducted himself in building works.

 

After due inquiry, the disciplinary board, if satisfied that the registered contractor has been convicted or has been negligent or misconducted himself, may order the name of the registered contractor to be removed from the relevant register, either permanently or for such period as it deems fit under the BO.

 

Under the same ordinance, the registered contractor may be fined a sum not exceeding $250,000 or be reprimanded.

 

A referral system has been set up between the Buildings Department and the Labour Department in which the latter will refer to the former for consideration of disciplinary action against a registered contractor involved in a serious labour safety incident at a construction site.

 

The Development Bureau said the Government will continue to adopt a multipronged approach to uplift site safety performance, adding that that the uplifting work needs the participation of all industry stakeholders.

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