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Following is a question by the Hon Leung Yiu-chung and a written reply by the Secretary for Transport and Housing, Ms Eva Cheng, in the Legislative Council today (July 4):
Question:
I have received complaints that although the names of some public housing estate maintenance or improvement works contractors have been removed from the Counterparty List of the Hong Kong Housing Authority ("HA") because of their poor performance, they can continue to carry out the works concerned after the removal of their names from the List because their contracts with HA have not yet expired. As such contractors are no longer eligible to bid for contracts offered by HA, there are problems of works being delayed or poorly carried out, which adversely affect the residents. In this connection, will the Government inform this Council:
(a) of the number of contractors who were no longer eligible to bid for the work projects of HA because their names had been removed from HA's relevant List in the past three years, and the reasons for the removal of their names from the List; and
(b) whether it will review and revise the existing system so that after the contractors have been removed from the List, their contracts can be terminated immediately, or other contractors or HA may follow up the projects concerned to ensure that such projects can be completed smoothly, in order to protect the interests of the residents; if it will not, of the reasons for that?
Reply:
Madam President,
My reply to the two-part question is as follows:
(a) The quality of service provided by public housing maintenance works contractors has always been the Housing Department's (HD) concern. For a contractor to be admitted to the Housing Authority (HA) List of Building Maintenance Contractors (the List) for participating in the tendering exercise for HA's works contracts, it has to go through a set of vigorous selection procedures to ascertain that it has the requisite ability, experience and resources to execute the HA's maintenance works. There are now 45 contractors on the List, which may tender for HA's maintenance works contracts.
Contractors admitted to the List would still be subject to stringent control and monitoring. In case of poor performance in the execution of works, failure to employ the specified works staff, failure to meet the financial requirements imposed by the HD (e.g. the requirement on working capital), or conviction for serious offences etc., the HD will consider taking regulatory measures against the contractor, such as suspension from tendering, and removal of their names from the List. During the past three years, a total of ten maintenance works contractors were removed from the List, six of them for failing to employ the specified works staff and three for failing to meet the financial requirements imposed by the HD. The remaining one has asked to have its name removed from the List.
(b) Once a contract is awarded, the HD will closely monitor the performance of the contractor. If its performance fails to meet the required standard, the HD may terminate the contract before it expires in accordance with the relevant contract provisions.
Normally, if a contractor is removed from the List, the HD will study the reasons for the removal. If the HD is satisfied, on the basis of the reasons for removal, that the contractor will not be capable of completing the awarded contracts (such as possible winding up of business because of the serious financial difficulties of the contractor), it will consider early termination of the contracts and re-tendering. In considering whether a contract should be terminated, the HD will also assess the performance of the contractor in the project in question, including the progress of works and the quality of service, in order to protect the overall interests of the residents. If early termination of the contract is warranted, the HD will ensure a smooth handover between the current and the new contractors so as to minimise the impact of contract termination on the works/service and the residents. If the contractor is allowed to continue to complete the contract, the HD will closely monitor its performance to ensure smooth completion of the works.
Ends/Wednesday, July 4, 2007
Issued at HKT 14:49
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