*********************************
The following is issued on behalf of the Hong Kong Housing Authority:
The Tender Committee (TC) of the Housing Authority (HA) held a meeting today (November 6).
All four main contractors involved in the public rental housing (PRH) estates in which the lead content in fresh water supply was found exceeding the World Health Organization's provisional guideline value have agreed to provide a performance bond to the HA to provide additional commitment to implementing measures to provide safe and convenient water supply to residents and to complete necessary rectification of water pipes and fittings, an HA spokesman said.
The four main contractors are China State Construction Engineering (Hong Kong) Limited, Shui On Building Contractors Limited, Paul Y. General Contractors Limited and Yau Lee Construction Company Limited.
In earlier deliberations on appropriate regulatory actions against the four main contractors, some TC members had suggested that apart from restricting the tender eligibility of the main contractors in forthcoming new works tenders, it would be relevant if the main contractors could provide additional commitment to the above measures, the spokesman noted.
After discussions with the HA, each of the four main contractors has agreed to provide a performance bond. They emphasised that they are providing the bond as a matter of good faith, good will and civic mindedness, and without any admission or acceptance of any liability on their part and without prejudice to their legal rights and position.
The bond covers the following actions:
* at its own expense, each main contractor has installed water filters in affected flats and will maintain them for two years from the date of the installation;
* at its own expense, each main contractor has installed temporary water supply pipes at every floor of each individual block of the affected estates and will maintain them until the completion of the rectification of pipes and joints;
* at its own expense, each main contractor will rectify all water pipes and joint fittings of the fresh water supply systems of the PRH estates which are necessary under the contract, and the remedial works will include a 12-month maintenance period commencing from the date of completion as certified by the Contract Manager; and
* each main contractor has no objection to providing the HA with a performance bond of $5,000 per flat within 21 days from the date to be notified by the HA, upon which the HA may call in the event that the main contractor is in default of any of the above clauses.
Taking into account the additional commitment, the TC decided that, in addition to the decision reached on September 30 of not considering the four main contractors (and two related companies) for tenders invited by the HA during the seven-month period from March to September this year, the HA will further suspend these main contractors from tendering for any HA new works contracts with effect from October 1, 2015 for the following periods:
* a period of one month for Shui On Building Contractors Limited (involving eight contracts with about 19,400 flats);
* a period of three months for China State Construction Engineering (Hong Kong) Limited, and Paul Y. General Contractors Limited (involving 11 contracts with about 21,700 flats); and
* a period of five months for Yau Lee Construction Company Limited (involving 12 contracts with about 26,600 flats).
The uplifting will also be subject to each main contractor's satisfactory performance in carrying out the interim measures and permanent rectification works in the affected estates.
Also in addition to the seven-month suspension, the HA will take immediate action against the involved domestic plumbing installation sub-contractors at contract level by debarring them from working on any HA new works contracts with effect from October 1, 2015 for the following periods:
* a period of one month for Ho Biu Kee Construction Engineering Company Limited;
* a period of three months for Golden Day Engineering Company Limited; and
* a period of five months for Ming Hop Company Limited.
Similarly, apart from the seven-month suspension, immediate action will also be taken at contract level against the three licensed plumbers involved in the incidents by debarring them from working on any HA new works contracts with effect from October 1, 2015 for the following periods:
* a period of one month for Mr Lam Tak-sum;
* a period of three months for Mr Cheung Tat-yam; and
* a period of five months for Mr Ng Hak-ming.
Ends/Friday, November 6, 2015
Issued at HKT 23:12
NNNN