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Following is a question by the Hon Tam Yiu-chung

, and a reply by the Acting Secretary for Housing, Mr Leung Chin-man, in the Legislative Council today(Wednesday):

Question:

It is reported that the number and distribution of steel bars in the pre-cast concrete components used for building some of the external walls of Tin Shing Court, a Home Ownership Scheme ("HOS") estate under construction, are below standard, and this may cause cracks or leakages on the walls of the affected flats. In this connection, will the Government inform this Council:

(a) whether the Housing Department has investigated the case; if so, of the outcome; if not, why not;

(b) of the circumstances under which the Government will take punitive measures against and claim compensation from building contractors of HOS projects and developers of housing estates under the Private Sector Participation Scheme; and

(c) whether, in the event that HOS projects are not completed on schedule, compensation will be made to the affected prospective owners, and priority given to those who have decided to rescind the sale and purchase agreements in favour of purchasing flats at the next HOS flats sale?

Reply

Madam President,

On the demand of the Housing Authority (HA), the two consultant architects, who are the Contract Managers of the two concerned phases of the Tin Shing Court project, have investigated the case. The investigation has concluded that the precast concrete facade (PCF) units installed in the concerned blocks comply with the design standard in terms of safety and durability. Housing Department has studied the investigation findings closely and agreed that the allegation about the PCF units is unfounded. No special remedial measures will therefore be required.

HA requires the building contractors for its Home Ownership Scheme (HOS) projects to work in strict compliance with the contract. The contractors are required to rectify any non-compliance of works at their own expense. If a contractor fails to complete the rectification works within the specified period, HA may recover the damages from him by deducting part of the payments. If the problem is serious, HA may terminate the contract and take legal actions to recover further damages from the contractor.

HA has also in place a contractors' performance review system. Disciplinary actions, including suspension from invitation to tender and removal from the list of approved contractors, may be taken against contractors who have performed poorly.

In the case of projects under the Private Sector Participation Scheme, the general practice for private housing developments is followed. A developer is required to appoint his own Authorized Person (AP) and Main Contractor. The AP is fully responsible for project design and the quality of construction works carried out by the Main Contractor. The design and construction works are subject to the control as prescribed under the Buildings Ordinance. In addition, a Monitoring Surveyor appointed by the Housing Department will assess the performance of the Main Contractor and the Housing Department itself will monitor the Main Contractor in the same manner as the contractors' performance review system under HOS.

In the event that the flat delivery date of an HOS project cannot meet the one stated in the "agreement for sale and purchase"(ASP) (which may be extended under certain special circumstances as provided under the ASP), the purchaser may either rescind the ASP, or seek compensation which would be the interest for the period of delay on all payments made. If the former is chosen, the deposit together with the interest will be refunded and the purchaser may re-apply for an HOS flat in the usual manner in future. Currently, the Tin Shing Court project is on schedule and delay is not expected.

End/Wednesday, January 6, 1999

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