Abbreviations

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Useful Corruption Prevention & Building Maintenance Information Integrity Management 2008/4/9 9:07:47 PM Abbreviations

AP Authorized Person ASG Advisory Services Group BD Buildings Department BRLS Building Rehabilitation Loan Scheme BRMIS Building Rehabilitation Materials Incentive Scheme BMO Building Management Ordinance (Cap 344) DLP Defects Liability Period DMC Deed of Mutual Covenant EMSD Electrical and Mechanical Services Department FS(B)O Fire Safety (Buildings) Ordinance FS(CP)O Fire Safety (Commercial Premises) Ordinance FSD Fire Services Department FSI Fire Service Installation HAD Home Affairs Department HKHS Hong Kong Housing Society ICAC Independent Commission Against Corruption MC Management Committee OC Owners’ Corporation PCP Prescribed Commercial Premises PMC Property Management Company POBO Prevention of Bribery Ordinance RGBC Registered General Building Contractor RGE Registered Geotechnical Engineer RSE Registered Structural Engineer SCB Speciﬁ ed Commercial Building UBW Unauthorized Building Works URA Urban Renewal Authority

MainText_Part1_Eng_OUT-final.indd 2 2008/4/9 9:07:48 PM Acknowledgments This Toolkit was jointly developed by the Hong Kong Housing Society and the Independent Commission Against Corruption. The valuable advice and contributions from the following parties are gratefully acknowledged:

Government Departments and Public Bodies

Buildings Department Fire Services Department Home Affairs Department Urban Renewal Authority

Professional Bodies

The Hong Kong Institute of Architects The Hong Kong Institution of Engineers The Hong Kong Institute of Surveyors

From the Editorial Board This Toolkit provides general guidance only and does not purport to deal with all possible issues that may arise in any given situation. Explanations of the legal requirements under the relevant Ordinances are necessarily general and abbreviated from the layman’s angle. Users of this Toolkit should seek legal advice as and when necessary. The Hong Kong Housing Society and Independent Commission Against Corruption will not accept any liability, legal or otherwise, for loss occasioned to any person acting or refraining from action as a result of any material in this publication.

The cases and scenarios given in this Toolkit are adapted from past prosecutions and investigations and are for illustration only.

Throughout this Toolkit, the male pronoun is used to cover references to both the male and female. No gender preference is intended.

The copyright of this publication is owned by the Independent Commission Against Corruption and Hong Kong Housing Society.

MainText_Part1_Eng_OUT-final.indd 3 2008/4/17 10:45:27 AM Introduction

A safe and hygienic living environment depends very much on the timely maintenance of your buildings’ common areas and estate facilities. A building lacking in maintenance is like a time bomb which endangers life and limb and may bring about serious consequences to the owners. It is therefore vital for owners to carry out maintenance works without delay. Equally important is upholding integrity and implementing best practices in the tendering and monitoring of building maintenance works, which are essential to help keep at bay corruption and fraud that may infl ate the maintenance costs, or even jeopardize the safety of the occupants. Understandably, owners may fi nd it diffi cult to deal with building maintenance works which usually require input from professional and technical personnel.

This Toolkit aims at providing a user-friendly guide to help Owners’ Corporations and owners in the planning and implementation of building maintenance projects. It covers the procedures for selecting consultants and contractors, and for monitoring their work. Measures to prevent abuse and corruption are recommended for adoption.

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Chapter 1 Building Maintenance Works PART 1 Section 1. Getting Started

Section 1 Getting started Section Objectives • Understand the key steps for building maintenance projects • Know the legal requirements • List the principles to prevent abuse and corruption in building maintenance works

Form an Owners' Corporation • Effective building management and timely maintenance help provide a pleasant and comfortable living environment for the owners, and ensure that the value of their property will not be adversely affected due to poor management and lack of maintenance of the building.

• The formation of an Owners’ Corporation (OC) is the first step to effective building management.

• The OC should comply with all legal requirements, including the provisions in the "Code of Practice on Procurement of Supplies, Goods & Services" and the "Code of Practice on Management and Maintenance" issued under the Building Management Ordinance (Cap 344) (BMO).

Building Management Ordinance (Cap 344) (BMO) • The BMO was enacted to provide a legal framework for the formation of OC to facilitate effective building management. It also sets out the powers and duties of an OC and its meeting procedures so as to facilitate the day-to-day operation of the OC and compliance by owners.

• Non-compliance of the BMO may render the acts done or resolutions passed by the OC or its Management Committee (MC) invalid. Any member of an MC who fails to carry out his statutory duty under the BMO may be personally liable for any act done or default made.

• The Lands Tribunal has the jurisdiction to hear and determine any proceedings relating to the interpretation and enforcement of the BMO.

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Owners’ Corporation and Management Committee • An OC is an independent body corporate set up in accordance with the BMO. It acts legally on behalf of all owners in managing the common parts of the building, and exercises and performs the rights, powers, privileges and duties of the owners under the BMO. An OC is also empowered to appoint a property management company (PMC) in managing the common parts of the building and to monitor its work.

• To deal with matters on building management promptly and effectively, an MC is appointed to handle the day-to-day operation of the OC. Under normal circumstances, the powers and duties conferred or imposed by the BMO shall be exercised and performed on behalf of the OC by the MC.

• Both the Home Affairs Department (HAD) and Hong Kong Housing Society (HKHS) provide assistance to owners to form OCs. One may search the following websites for details :

HAD website: http://www.buildingmgt.gov.hk Annex 20 – Contact of HAD’s District Building Management Liaison Teams

HKHS website : http://bmms.hkhs.com Annex 16 – Contact of HKHS’s Property Management Advisory Centres

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Deed of Mutual Covenant (DMC) • A DMC is a private contractual agreement among all the co-owners, the manager and also the developer of a building. It sets out the rights, interests and obligations of the parties concerned in respect of the control, management and maintenance of private / common parts and facilities of buildings.

• Terms in the DMC include, among others, the deﬁ nition of the common areas of the building, the ownership of such common areas, the allocation of undivided shares among building owners, the speciﬁ cation of management fee, the formation of OC, the restriction to building owners, and the resolution on matters concerning building management and maintenance.

Need for Maintenance Building Maintenance Responsibilities • Under the BMO, the OC is responsible for maintaining the common parts and the property of the corporation in a state of good and serviceable repair and clean conditions.

• It is in the interest of the owners to carry out timely maintenance works on their buildings, as this could contain the problem of building deterioration and enhance the value of the property.

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Meet Legal Requirements BMO Requirements on Letting of Contracts • Section 20A of BMO : Supplies, goods and services

If the estimated project cost exceeds or is likely to exceed: • HK$ 200,000 or • a sum equivalent to 20% of the OC’s annual budget whichever is the less, it shall be procured by invitation to tender by the OC.

In addition, if the estimated project cost exceeds or is likely to exceed a sum equivalent to 20% of the OC’s annual budget, the MC shall sumbit all the tenders received to a general meeting of the OC. Whether a tender is accepted or not shall be decided by a resolution passed by a majority of votes at the general meeting of the OC.

Annex 1 – Section 20A of BMO

• Section 44 of BMO & Code of Practice on Procurement of Supplies, Goods & Services

Pursuant to section 44(1)(a), the Authority, i.e. the Secretary for Home Affairs, may from time to time prepare, revise and issue Code of Practice giving guidance and direction as to the procurement of supplies, goods and services required by a corporation including such procurement by invitation to tender and the tender procedure in respect thereof.

Annex 2 – Section 44 of BMO

Annex 3 – Code of Practice on Procurement of Supplies, Goods & Services

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Statutory Orders / Directions • Under the Buildings Ordinance (Cap 123), the Building Authority may serve statutory orders on owners to rectify unsafe or undesirable situations such as dilapidated buildings, drainage nuisance, dangerous slopes or earth-retaining structures. Such orders may also require owners to carry out investigation for an assessment of the required remedial measures. Details in Section 4 – Page 33

• The Fire Services Department (FSD) and the Buildings Department (BD) may serve statutory notices/directions on OCs / owners / occupiers to improve ﬁ re safety measures in buildings.

Details in Section 5 – Page 36

• Other government departments may also serve statutory orders, directions or notices on owners to demand various types of rectiﬁ cation works. Some examples are listed in Annex 5. Annex 5

• If OCs / owners / occupiers are in doubt of the works required to be carried out under the order / direction / notice, he can seek clarification from the case officer of the relevant government departments. The name and telephone number of the case ofﬁ cer normally are shown in the covering letter or explanatory notes attached to the order / direction / notice.

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Building Maintenance Tips • Detailed planning is the key to successful implementation of building maintenance projects. The first step is to understand the current conditions of the building in order to ﬁ nd out the extent of the existing problems and to deﬁ ne the scope of work.

• While a project consultant (i.e. a building professional) is usually engaged to assist in surveying the building conditions and planning and implementing the maintenance project, it is advisable for OCs to thoroughly brief the project consultant the maintenance works they have identiﬁ ed, which could include repair and maintenance works for external walls, common areas, plumbing systems, common drains, underground drainage pipes, electrical installations, etc.

• A general understanding of the common defects / problems found in buildings helps owners to assess the conditions of their property and to deal with the problems. Please see Annex 9 for a list of the common defects, their possible causes and tips on common maintenance/repair methods.

Annex 9

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Key Processes of Building Maintenance Projects

Form an OC

Self-initiated / scheduled Receipt of statutory maintenance project orders

Arrange OC / owners’ meetings to discuss and agree on : • list of work items Need help : • hiring of building professionals / consultants Consult HKHS and • hiring of building contractors / registered ﬁ re service relevant government installation contractors, etc. departments • budget / method of apportioning costs amongst Chapter 5 – Page 52 co-owners * • timing and method of collection of the apportioned costs

* Need to refer to the provisions of the DMC

Appoint building professional / project consultant Section 2 – Page 16

Appoint building contractor / ﬁ re service installation Section 2 – Page 19 contractor, etc.

Carry out maintenance / renovation works Section 3 – Page 27

The appointed building professional / project consultant to certify completion of the works and Section 3 – Page 32 if necessary, to inform BD, FSD or other relevant government departments.

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Checklist – to help you prevent abuse and corruption in building maintenance projects

The OC should comply with all legal requirements, including the provisions in the "Code of Practice on Procurement of Supplies, Goods & Services" issued under the BMO.

The tender exercises for selecting building professionals, i.e. project consultants, and building contractors, should be conducted in an open, fair and competitive manner. The MC should make regular progress reports to owners (e.g. upon completion of each milestone and by posting notices at a prominent place).

Members of the MC and any working group set up for tender evaluation should be prohibited from soliciting or accepting any advantage from any consultant or contractor in relation to the tender.

Any agent or employee of the OC, including the estate manager, building professionals, project consultants and contractors appointed and their employees, should be prohibited from soliciting or accepting any advantage in connection with his duty unless with the permission of the OC.

The OC / MC members or PMC staff involved in the tender exercises should be required to declare any actual / potential / perceived conﬂ ict of interest.

Any agent or employee of the OC, including the estate manager, building professionals, project consultants and contractors appointed and their employees, should be required to declare any actual / potential / perceived conﬂ ict of interest whenever it comes to their attention.

For detailed explanation on integrity management, please refer to Chapter 4 – page 45

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Section 2 Appointing Consultants and Contractors Section Objectives • Understand the role of consultants and contractors • Know the key procedures for selecting a consultant / contractor • Include the essential terms in the consultancy agreement and works contract • Build safeguards against abuse in the tender process

Role of Project Consultants • Building maintenance works are fairly technical and complicated in nature. OCs are advised to employ a project consultant to assist in the implementation of the works, except for simple and minor repairs.

• The services provided by a project consultant generally cover survey of the building for identiﬁ cation of defects, design of maintenance works, tendering of the works, contract administration, supervision of the contractors’ work, certiﬁ cation of payments, budgetary control of the maintenance works, etc.

• The consultant assists the OC in drawing up tender / contract documents and conducting the tender exercise for the selection of a contractor, and acts on behalf of the OC to administer the contract and monitor the quality of work on site.

• A project consultant is usually a qualified building professional. Building professionals are mainly architects, engineers and surveyors who are involved extensively in building construction, alteration and maintenance matters. An Authorized Person (AP) or a Registered Structural Engineer (RSE) may be required in some circumstances where non-exempted building works are involved.

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WHO are they? Authorized Persons under the Buildings Ordinance (Cap 123) • APs are qualiﬁ ed building professionals registered with BD to undertake the responsibilities laid down under the Buildings Ordinance. An AP may be an architect, an engineer or a surveyor by profession.

• By Law, any person, who wants to initiate building works, unless exempted, should appoint an AP to submit plans for approval by BD, to co-ordinate the whole project, to work with other professionals such as a RSE, where structural works are involved, and a Registered Geotechnical Engineer (RGE), where geotechnical works are involved, to supervise the work and to certify completion.

• For works that require the employment of an AP, RSE or RGE, BD will indicate this requirement in the statutory order.

• BD maintains lists of APs, RSEs and RGEs. APs, RSEs or RGEs who have expressed interest in carrying out works in relation to building safety are indicated in the "remark" column on the lists which are available at BD's ofﬁ ces and BD's website.

Lists of APs, RSEs & RGEs: www.bd.gov.hk/english/inform/index_ap.html

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Role of Contractors • Contractors are employed to carry out maintenance works.

• The employment of a Registered General Building Contractor (RGBC) is required when dealing with structural works and large-scale maintenance works.

• In carrying out fire service installation and maintenance works, the employment of a Registered Fire Service Installation (FSI) Contractor is required.

• For specialized maintenance works, such as removal of asbestos, the employment of an asbestos contractor registered by the Environmental Protection Department is required.

• For works involving lifts, the service of a Registered Lift Contractor is required.

• For works involving electrical installations, the employment of a Registered Electrical Contractor is required.

• For plumbing installations, the employment of a Licensed Plumber is required.

• For construction works relating to gas installations, the employment of a Registered Gas Contractor and Competent Person is required.

WHO are they? Registered Contractors under the Buildings Ordinance (Cap 123) • BD maintains lists of RGBCs and other Registered Specialist Contractors for different categories of specialized works.

• Contractors on the lists have met the stipulated standards and have passed the assessment by a registration committee.

RGBCs who have expressed interest in carrying out works in relation to building safety are indicated in the “remark” column on the lists which are available at BD’s ofﬁ ce and on BD’s website.

Lists of Registered Contractors : www.bd.gov.hk/english/inform/index_ap.html

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WHO are they? Registered FSI Contractors under the Fire Services Ordinance (Cap 95) Registered FSI contractors are divided into 3 classes for different types of installation work. A list of registered FSI Contractors is available for reference at the Fire Safety Command Headquarters, Licensing and Certification Command Headquarters, fire stations and fire protection regional ofﬁ ces. The list is also available at the FSD website.

List of FSI Contractors : www.hkfsd.gov.hk/home/eng/cert.html

WHO are they? Registered Lift Contractors and Engineers Only a Registered Lift Engineer, a Competent Lift Worker employed by a Registered Lift Contractor, or a worker working under their direct supervision can carry out lift works.

Details of the Registered Lift Contractors, including a list can be found on the Electrical and Mechanical Services Department’s (EMSD) website.

List of Registered Lift Contractors : www.emsd.gov.hk

WHO are they? Licensed Plumbers Licensed plumbers are persons licensed under the Waterworks Regulation to carry out plumbing work. They must be employed to construct, install, maintain, alter, repair, or remove water supply plumbing. A Licensed Plumber Directory is available on the Water Supplies Department’s website:

Licensed Plumbers Directory : www.wsd.gov.hk

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WHO are they? Registered Electrical Contractors and Registered Electrical Workers Electrical work including installation, inspection, maintenance, modification, repair and certification must be carried out by Registered Electrical Workers of the appropriate grade employed either by Registered Electrical Contractors or by electrical installation owners on a full-time basis.

Lists of Registered Electrical Contractors and Registered Electrical Workers can be found on the website of EMSD. Registered Electrical Contractors are required to display their Registration Certificates in a prominent position at their business addresses, and Registered Electrical Workers hold Registration Certiﬁ cates issued by EMSD for identiﬁ cation purpose.

List of Registered Electrical Contractors and Registered Electrical Workers : www.emsd.gov.hk

WHO are they? Registered Gas Contractors and Competent Persons 8 classes of Registered Gas Contractors are registered by EMSD to install different types of gas (Towngas or LPG) installations. EMSD also registers 2 classes of Competent Persons to test, inspect and certify LPG compound, cylinder stores and associated equipment.

Lists of Registered Gas Contractors and Competent Persons can be found on EMSD’s website.

List of Registered Gas Contractors and Competent Persons : www.emsd.gov.hk

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Impartiality of Consultants • Consultants play an important role in selecting contractors, supervising the quality of works carried out and certifying payments to the contractors. Hence, it is important to ensure their impartiality.

• If OCs / owners employ the contractor first and rely on the contractor to appoint a consultant to liaise with the relevant government departments for complying with statutory requirements, then the consultant employed would not be in a position to act impartially to protect the interest of the OC.

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Key Processes for Selection of Consultants The following is a procedural ﬂ owchart for the selection of consultants. Safeguards Deﬁ ne the service scope of the consultant against abuse Checklist (A) Page 17

Determine the tender method : A P.22 Selective tender or Open tender

Pre-qualiﬁ cation exercise (optional) Annex 6c • Determine the pre-qualiﬁ cation criteria B P.23 • Invite expression of interest and shortlist potential Annex 6a, 6b tenderers based on the pre-determined criteria.

OC / MC members & PMC staff, if involved, to Annex 12 declare any conﬂ ict of interest See Chapter 4

Invite tenders (i.e. fee proposals) according to Annex 6d, 6e BMO requirements; C P.23 and determine selection criteria Annex 6g

Receive and open tenders Annex 6f D P.24

OC / MC members & PMC staff, if involved, Annex 12 to declare any conﬂ ict of interest See Chapter 4

Hold meeting(s) to evaluate the fee proposals based Annex 6g E P.24 on pre-determined selection criteria

Hold owners' meeting or MC meeting to agree on the appointment of consultant

Award the consultancy agreement and notify Checklist (B) residents of the tender result by posting a notice at a Page 18 F P.26 conspicuous place (e.g. lift lobby) Annex 6h, 6i 16

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Checklist (A) – General Service Scope of the Consultant

conduct building condition survey and identiﬁ cation of defects

provide professional advice on maintenance and renovation items

liaise with relevant Government Departments in relation to compliance with statutory requirements

prepare tender documents, including drawings and speciﬁ cations, for selection of contractors

issue and receipt of tenders and handle tender enquiries

analyze tenders and prepare reports to the OC with recommendations

notify contractor of contract award on behalf of the OC

supervise and report on the progress and quality of maintenance works

certify completion of works at stages and handle interim payments and claims from the contractor

certify work completion and monitor defect rectiﬁ cation

oversee budget control

handle dispute with contractor

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Checklist (B) – Essential Terms and Conditions of the Consultancy Agreement

Scope of Service [refer to Checklist (A)]

Payment Arrangements

Termination Clause

Insurance

Clause prohibiting offer / acceptance of advantages Chapter 4 Clause requiring declaration of conﬂ ict of interest Sample clauses in Annex 6i

Conﬁ dentiality Clause

When preparing the consultancy agreement, OCs may make reference to the sample agreements published by the professional bodies, e.g. the Hong Kong Institute of Surveyors and the Hong Kong Institute of Architects. For more details, please contact the professional bodies. Annex 20

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Key Processes for Selection of Contractors

Hold an owners’ meeting to discuss and conﬁ rm Safeguards the scope of the maintenance works against abuse

Prepare tender documents*; and determine the Checklist (C), A P.22 tender method: Selective tender or Open tender Page 20

Pre-qualiﬁ cation exercise* (optional) • Determine the pre-qualiﬁ cation criteria Annex 7a B P.23 • Invite expression of interest and shortlist contractors Annex 7b for tendering based on the pre-determined criteria

OC / MC members, PMC staff if involved, and the project consultant to declare conﬂ ict of interest, if any Annex 12 (e.g. the relationship with contractors) See Chapter 4

Invite tenders from shortlisted contractors according C P.23 to BMO requirements*

Receive and open tenders* Annex 6f D P.24

OC / MC members, PMC staff if involved, and the project consultant to declare any conﬂ ict of interest Annex 12 See Chapter 4

Hold a meeting to evaluate the tenders received Annex 7d E P.24 based on pre-determined criteria*

Hold owners' meeting or MC meeting to agree on the appointment of contractor

Prepare contract documents* Checklist (D), Page 21

Award the contract and notify owners / occupiers Annex 6h F P.26 and tenderers of the result in writing*

19 *Note : with assistance from the project consultant where employed

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Checklist (C) – Essential Items in the Tender Document

Scope of Work and Speciﬁ cations

Tender Conditions Probity Clause Annex 7c Anti-collusion Clause Date, time and location for return of tenders

Pricing Schedule for Works Items

Contract Terms and Conditions, including : Payment arrangements subject to certiﬁ cation by the consultant on the work done Insurance Defects Liability Period Liquidated Damages Extension of Time Material Guarantees Surety Bond / Retention Money Termination Clause

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Checklist (D) – Essential Contract Terms

Scope of Work and Specifi cations [including any drawings, specifi cations of materials and their standards (e.g. the specifi cations or brand names of pipes, pumps, paints, tiles, glass panels, locks and switches) as agreed with the contractor]

Pricing Schedule for Works Items as tendered

Contract Terms and Conditions including : Commencement and Completion Dates Payment arrangements subject to certiﬁ cation by the consultant on the work done Insurance Termination Clause Liquidated Damages Extension of Time Material Guarantees Defects Liability Period Surety Bond / Retention Money Ethical Commitment Clauses for Contract Sample clauses Conﬁ dentiality Clauses in Annex 7e

When preparing the contract, OCs may make reference to the sample contract documents published by the professional bodies, e.g. the Hong Kong Institute of Surveyors and the Hong Kong Institute of Architects. For more details, please contact the professional bodies. Annex 20

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Tender Procedures – Safeguards A Determination of Tender Method The commonly adopted methods to employ a consultant or procure a works contract are selective or open tender.

Tender Methods Important Points to Note

• Tenders are invited from a shortlist of consultants or Selective contractors. Tender

• In compiling the list of consultants, the OC should not solely rely on the recommendations made by an individual, e.g. MC member, owner or the PMC staff.

• One way to compile the shortlist is through selecting the required number of consultants from the lists of APs / RSEs maintained by the BD. Chapter 1, Page 10-11

• It is advisable to check the job references of the consultants recommended / shortlisted and to add to the list other qualified consultants who are known to have performed well in similar projects.

• For the employment of contractors, the consultant will compile a shortlist for invitation to tender. In addition to those recommended by the consultant, owners or MC members, the OC should add to the shortlist a few other contractors who are known to have performed well in similar projects.

• All contractors invited, including those recommended by the consultant, should be required to provide job records for assessment.

• MC members, owners or PMC staff should be required to declare whether or not they have any conflict of interest arising from their relationship with the shortlisted consultants/contractors.

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Tender Methods Important Points to Note

• An advertisement is made in a newspaper to invite Open Tender openly an expression of interest from consultants/ contractors. Those who have expressed interest and fulﬁ lled the pre-qualiﬁ cation criteria are invited to tender. Annex 6a and 7a

Single Tender, NOT recommended. by Negotiation (OCs should observe Sections 20A & 44 of BMO.) Annex 1 and 2

B Pre-qualification • Pre-qualification is a screening exercise conducted to shortlist consultants or contractors who have met the laid down qualifying requirements for the purpose of invitation to bid.

• Those requirements include registration status, past experience, job reference, previous employers’ recommendations, size of company and financial strength. The exercise may also include discussions with referees and interviews with the interested consultants/contractors (Annex 6(b) – Appendix). If the OC does not conduct a pre-qualiﬁ cation exercise, such information should be requested during invitation of tenders.

C Invitation of Tender • BMO Requirements - Sections 20A and 44 of BMO and the "Code of Practices on Procurement of Supplies, Goods and Services" (Annex 1, 2 and 3) :

Estimated Cost (e.g. consultancy fee) No. of Tenders

$10,000 - $200,000 At least 3 tenderers > $200,000 At least 5 tenderers

• A copy of the tender invitation should be displayed in a prominent place in the building.

• Deadline for submission should be clearly stated in the tender invitation. 23

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D Receipt and Opening of Tenders • Tenders should be deposited into a double-locked box (marked “Tender-Box (投標箱)”) with keys separately held by the chairman, and the secretary or treasurer.

• Tenderers should be advised to deposit the tenders directly into the tender box. Tenders submitted by post or other means should be deposited into the tender box immediately upon receipt.

• Tenders should be opened immediately after the deadline in the presence of at least three MC members.

• Late submissions, after all tenders have been opened, should not be accepted.

• The tender opening team members should sign and date each tender and against the quoted price. A record of the tenders received (e.g. names of tenderers and price offers) should be kept. Annex 6f

• Tenders should be kept securely under lock before tender evaluation.

E Evaluation of Tenders • Usually, for the assessment of tenders, price is not the only consideration. The evaluation criteria may also include non-price factors (e.g. past experience in building maintenance work).

• Such criteria should be determined before tender opening. Tenderers should also be informed of the evaluation criteria in the tender invitation.

• For the appointment of a contractor, the project consultant will prepare a detailed tender analysis with a recommendation to assist the OC in the selection.

• In assessing the tenders, the responsible OC/MC members, PMC staff or in the case of selecting a contractor, the project consultant must ensure that the selected tenderer meet the speciﬁ ed tender requirements. If the lowest bid or the best offer according to the evaluation criteria is not recommended, the reasons should be recorded.

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A Case of Tender Evaluation Is price the only consideration in tender evaluation? The following story, which is based on a real case, highlights some issues of concern.

The OC of “ABC Building” needed to carry out a building maintenance project and invited tenders from project consultants through open tender. After the close of tender, the OC received 8 tenders and one of the tenderers, “Consultant X”, submitted an exceptionally low bid of HK$40,000 while the other bids ranged between $100,000 - $140,000. Although Consultant X had only one qualified building professional and had little experience in maintenance projects, the OC awarded the project to Consultant X simply based on price consideration.

After the award of the contract, Consultant X assisted the OC in the selection of a contractor. The director of Consultant X approached Contractor Y for a rebate of 10% of the contract sum, which was about 2 million, in return for awarding the contract to him. Contractor Y agreed and submitted a tender for $2.5 million. With the connivance of Consultant X, Contractor Y also asked four other contractors to submit tenders with higher price offers than his in order to rig the tender exercise. In the end, the OC had to pay more without getting quality work because the contracter's poor performance was covered up by Consultant X.

Case Analysis If the OC of “ABC Building” had weighted other factors, such as the staffing structure of the consultants, their qualifications and past experience in maintenance projects, Consultant X would not have been selected. It is therefore advisable for the OC to take into account non- price factors in tender evaluation so as to ensure that a competent project consultant is selected. Such factors, i.e. assessment criteria, should be pre-determined before the tenders are opened.

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F Tender Result • Under Section 20A(2B) of the BMO, a decision on whether or not to accept a tender of a value exceeding 20% of the annual budget of the OC should be made at the general meeting of the OC. For a contract of a value not exceeding 20% of the annual budget of the OC, the decision could be made by the MC.

• The tender result should be disclosed to all unsuccessful tenderers.

• All tender documents, contracts and receipts, etc. should be properly kept for at least six years and made available for inspection by owners/tenants, their authorized representatives, registered mortgagees, and ofﬁ cers authorized by the Secretary for Home Affairs.

• Owners / occupiers should be notified in writing of the tender result. The notice should be displayed at a prominent place of the building.

More guidelines on procurement are available under Chapter 6 of the Frequently Asked Questions on Building Management (Amendment) Ordinance 2007 issued by the Home Affairs Department. Annex 4

MainText_Part1_Eng_OUT-final.indd 26 2008/4/9 9:08:07 PM Chapter 1 PART 1 Building Maintenance Works Section 3. Supervising Maintenance Works

Section 3 Supervising Maintenance Works Section Objectives • List the key measures for supervision of building maintenance works

Project Planning

A P.28 Regular Progress Monitoring

D P.31 B P.29 Work Variations Quality Check for Acceptance

C P.30 Interim Payments

Check for completion E P.32 Certiﬁ cation of Work Completion

Check to ensure rectiﬁ cation of defects during Defects Liability Period F P.32 End of Defects Liability Period

F P.32 Release of Retention Money

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• The project consultant has the responsibility to administer the maintenance works contract in an Important impartial and diligent manner. His duties include monitoring the quality of works, checking works Note progress, certifying contract payments and issuing instructions to the contractor.

• It is therefore important for representatives of the OC / MC to work closely with the project consultant to ensure that the works are carried out on time, within budget and up to the quality required.

A Progress Monitoring • At the start of the contract, the project consultant should require the contractor to submit a work programme showing the stages and deliverables of the maintenance works required.

• Members of the MC / OC overseeing the project should conduct regular meetings with the project consultant and contractor to monitor the progress of work against the work programme.

• The work programme should be posted in a prominent place of the building for information and monitoring by owners / occupiers.

• The contractor should be required to report on any delay encountered, with explanation and proposed remedial measures.

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B Quality Checks • The project consultant should carry out periodic visits to monitor the quality of the maintenance works on site. It is advisable for the OC to have an agreement with the project consultant, before the commencement of the works contract, on a site supervision plan covering the details of the site inspection arrangements including the personnel carrying out the site inspection, the works to be inspected, the frequency of inspections, and any tests required.

• The project consultant should be required to report on the progress and quality of works carried out. For all hidden works, the consultant should be required to take measurement record, where appropriate, and site photos before and after the work completion.

• The contractor should be required to provide the MC with samples of construction materials approved by the project consultant for use. If practical, the samples should be displayed in the public area of the building for the information of OC members and owners / occupiers.

• If MC members have observed any irregularities on the work of the contractor (e.g. the materials used are different from those approved), they should inform the project consultant for follow-up action and request the project consultant to report back on the corrective actions taken.

• On completion of works or a major part of works, the responsible MC members, the project consultant and the contractor should jointly conduct an inspection of the completed works and compile a list of items for rectiﬁ cation to be given to the contractor for follow up actions.

• For maintenance projects carried out under a statutory order/direction, the project consultant and contractor should be required to inform the authority concerned upon completion of the relevant works and obtain a compliance letter from the authority.

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C Payments • The project consultant should be required to submit reports on work progress and financial statements of the project account to the MC regularly for monitoring. Such reports and ﬁ nancial statements should be posted in a prominent place of the building for owners’ monitoring and information.

• If the contract provides for interim payments, the contractor is entitled to submit an application for payment in accordance with the contract terms. Based on the contractor’s application, the project consultant assesses the cost of works carried out and issues an interim payment certiﬁ cate.

• Interim payments to the contractor should be made in accordance with the contract provisions upon the issue of the interim payment certiﬁ cate by the project consultant.

• Where sub-standard or non-complying works are found, the project consultant should advise the MC accordingly and exclude these works from the payment certiﬁ cate.

• It is advisable for members of the MC or working committee to check if the works have been completed before payment.

• Cheques for payment should be jointly signed by the treasurer and at least two designated MC members.

For large and complicated maintenance projects, it is advisable to employ a consultant Quantity Surveyor1 to assess contract payments and exercise cost control.

1 A Quantity Surveyor is a professional who is specialized in project procurement and cost administration of works contracts.

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D Work Variations • Variations refer to changes to the speciﬁ ed works after the award of contract. (For example, the contract only covers repair and maintenance of external walls and water supply pipes. Subsequently when carrying out repair works on water supply pipes, it is discovered that the drains also need to be repaired. Such additional works required are work variations.)

• If not properly controlled, variations could substantially raise the project cost, and give rise to abuse (e.g. order of unnecessary work variations).

• As any works outside the scope of the contract are regarded as variations, to minimize the need for work variations, the OC should include, as far as possible, all repair work required, no matter how minor, in the contract.

• The OC should ensure that all variations are justiﬁ ed and recorded. The following safeguards are recommended:

- The project consultant should be required to seek the approval of the MC before the issue of any variation orders to the contractor.

- In support of the application for approval of variations, the project consultant should be required to provide a cost estimate of the proposed work variation.

- There should be clear ﬁ nancial limits on the maximum amount of variations that the MC is authorized to approve; above which approval from the OC should be sought.

- Work variations and the costs involved should be made known to owners / occupiers by a notice posted in a prominent place of the building.

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E Certification of Practical Completion • The project consultant issues a Certiﬁ cate of Practical Completion when all works have been carried out in accordance with the speciﬁ cations and schedule of works.

• Prior to the issue of the certiﬁ cate, owners / occupiers should be informed of the impending issue of the certiﬁ cate by a notice posted in a prominent place of the building, and invited to report on any defect or outstanding works.

• Upon the issue of the Certiﬁ cate of Practical Completion, the contractor is entitled to the payment of the contract sum (or balance of the contract sum if interim payments have been made), except for a sum of 5% – 10% as specified in the contract, which is withheld as retention money until the satisfactory completion of the rectiﬁ cation works and the expiry of the Defects Liability Period (DLP).

F Defects Liability Period and Release of Retention Money • DLP commences from the date of Practical Completion to the date speciﬁ ed in the work contract. During this period, the contractor is responsible for making good any defects found in the works carried out.

• During the DLP as defined in the contract, members of the MC or working committee should check the works completed and refer any defects observed through the consultant to the contractor for repair.

• The project consultant is responsible for supervising the rectiﬁ cation works during the DLP.

• Before the end of the DLP, owners / occupiers should be invited to report on any further defects found. When all rectification works have been satisfactorily completed, the project consultant will issue a Final Certiﬁ cate and this will trigger the release of the retention money. Subject to the settlement of the maintenance project’s Final Account, the works contract can be regarded as completed.

MainText_Part1_Eng_OUT-final.indd 32 2008/4/9 9:08:12 PM Chapter 1 PART 1 Building Maintenance Works Section 4. Complying with Repair Orders

Section 4 Complying with Repair Orders Section Objectives • Understand the legal requirements under the Buildings Ordinance (Cap 123) • List the major steps to be taken for meeting requirements of statutory orders issued by the Building Authority

Buildings Ordinance (Cap 123) • The building works in private buildings come within the purview of the Buildings Ordinance (Cap 123). It ensures that safety and health standards are maintained in the design, construction, use and maintenance of buildings.

Complying with Repair Orders • There are mainly four types of statutory orders issued by BD in relation to building maintenance. The major steps to be taken for complying with these orders are described below.

Building or Drainage Works Investigation Order under Section 26A or 28 of Buildings Ordinance • Under this section, BD may issue an Investigation Order requiring the appointment of an AP to carry out an investigation on the structural conditions and defects of a building or its drainage system.

• The AP employed is required to submit to BD an assessment report on the conditions of the building. He may include in his report the necessary repair works for the approval of the Building Authority.

• If the proposed repair works are approved, BD may instruct the execution of the works through a letter or an order depending on the circumstances.

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Repair Order under Section 26 or 28 of the Buildings Ordinance • Under this section, BD may issue a Repair Order that requires the appointment of an AP to coordinate and supervise the repair of building and/or drainage system (usually required in large scale repair).

• Owners should appoint contractors with relevant experience to carry out the remedial works. (For structural repair works, RGBCs are required.)

• The owners or AP should report the completion of repair works to BD for arranging a compliance inspection and subsequent issuance of compliance letter.

Dangerous Hillside Investigation and Repair Order under Section 27A of the Buildings Ordinance • Under this section, BD may issue an order requiring an investigation on the safety of a slope that forms a part of a private development. Subject to the requirements speciﬁ ed on the order, an AP, a RSE or a RGE or a combination of them should be appointed to carry out the investigation.

• After the investigation, the AP/RSE/RGE should submit remedial proposals for the approval of the Building Authority.

• Based on the advice from the AP/RSE/RGE, a registered specialist contractor in the site formation works category or other appropriate categories should be appointed to carry out the remedial works under the supervision of the AP/RSE/RGE.

• Upon completion of the remedial works, the AP/RSE/RGE should report the completion of remedial works to BD.

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Unauthorized Building Works (UBW) Removal Order under Section 24 of the Buildings Ordinance • If owners are in doubt of the approved layout of their premises before the removal of UBW, they may apply for viewing the approved plans kept with BD.

• If considered necessary, owners may clarify the content of the order with the case ofﬁ cer as speciﬁ ed in the covering letter.

• In order that the required removal works can be carried out safely, BD may require owners to employ a registered contractor. Owners should also observe the requirements contained in:

- "Guidelines for the Removal of Typical Unauthorized Building Works and General Maintenance of External Walls" issued by BD; and

- "Asbestos Removal of Unauthorized Building Works" issued by the Environmental Protection Department.

• If the removal and reinstatement works are substantial or involve structural works, BD may require owners to engage an AP to prepare remedial proposals and supervise the works. Registered contractors should also be engaged to execute the works under the supervision of the AP.

• After the completion of the removal and reinstatement works, owners should ensure that the AP has reported to BD for arranging a compliance inspection. BD will issue a compliance letter to the owners concerned if the removal works are carried out satisfactorily.

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Section 5 Complying with Statutory Directions for Fire Safety Section Objectives • Understand the relevant legal requirements concerning ﬁ re safety of buildings • List the key procedures required by FSD and BD to meet statutory directions’ requirements

Fire Services Ordinance (Cap 95) • Fire Services Ordinance (Cap 95) governs the control of ﬁ re hazards in buildings, including the installation and maintenance of ﬁ re service installations and equipment.

• Under the Ordinance, the Director of Fire Services may serve a statutory notice on a person whose act, default or sufferance has caused or continued to cause the ﬁ re hazard, requiring him to abate the hazard within the period speciﬁ ed in the notice.

The Fire Safety Ordinances • For better protection to the users, owners/occupiers of commercial buildings/premises as well as composite and domestic buildings are required, under the Fire Safety (Commercial Premises) Ordinance (FS(CP)O) and Fire Safety (Buildings) Ordinance (FS(B)O) respectively, to improve the fi re service installation and equipment as well as fi re safety constructions, such as fi re resistant doors, in their buildings with reference to the stipulated standards.

Fire Safety (Commercial Premises) Ordinance (Cap 502) • The FS(CP)O provides for the improvement of ﬁ re safety measures in commercial buildings built or with building plans ﬁ rst submitted for approval on or before 1 March 1987; and premises for banks, off-course betting centres, jewellery shops, supermarkets, department stores or shopping arcades.

Pamphlets for FS(CP)O are available at : http://www.bd.gov.hk/english/documents/code/fso502_e.pdf

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Fire Safety (Buildings) Ordinance (Cap 572) • The FS(B)O provides for the improvement of fire safety measures in composite and domestic buildings built or with building plans ﬁ rst submitted for approval on or before 1 March 1987.

Pamphlets for FS(B)O are available at : http://www.bd.gov.hk/english/documents/code/fso572_e.pdf

Enforcement Authorities • The Director of Fire Services who has jurisdiction over fire service installations and equipment; and the Director of Buildings who has jurisdiction over ﬁ re safety construction; will serve statutory directions on the owners / occupiers concerned as necessary.

Categorization of Target Buildings / Premises under the FS(CP)O and FS(B)O Prescribed Commercial Premises (PCP) • A building or part of a building is a PCP under the scope of the FS(CP)O if it is used for carrying out commercial activities such as banking (other than merchant banking), off- course betting, jewellery or goldsmith's business on premises that have a security area, supermarkets, hypermarkets, department stores and shopping arcades, with the total ﬂ oor area of the building or part of which exceeds 230m2.

Specifi ed Commercial Buildings (SCB) • A building is a SCB under the scope of the FS(CP)O if the building was constructed to be used or is being used for the purposes of offi ce, business, trade or any entertainment, and the building was constructed on or before 1st March 1987, or the plans of the building works of which were fi rst submitted to the Building Authority for approval on or before 1st March 1987.

Composite Buildings and Domestic Buildings subject to FS(B)O • The FS(B)O applies to a building constructed, or intended to be used,

- partly for domestic purposes and partly for non-domestic purposes; or

- for domestic purposes with more than 3 storeys; and

the building was constructed on or before 1st March 1987, or the building plans of the building works of which were ﬁ rst submitted to the Building Authority for approval on or before 1st March 1987.

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Issuance of Statutory Directions Upon completion of an inspection of the premises, the FSD and the BD will serve Fire Safety Directions or Fire Safety Improvement Directions separately on the OCs / owners / occupiers as necessary, directing them to comply with the requirements by carrying out improvement works which may include the following:

Fire Service Installations & Equipment under the jurisdiction of the Director of Fire Services • Automatic sprinkler system

• Fire hydrant and hose reel system

• Manual ﬁ re alarm

• Emergency lighting

• Automatic cut-off device for mechanical ventilation system

• Portable ﬁ re extinguisher

Fire Safety Construction Requirements under the jurisdiction of the Director of Buildings • Provision of adequate ﬁ re escape routes

• Provision of adequate protection for fire escape routes and the integrity of structures against ﬁ re, and for inhibition of spreading of ﬁ re

• Provision of adequate means of access for ﬁ re ﬁ ghting and rescue

Key Procedures to Comply with Statutory Directions Fire Service Installation and Equipment under the Jurisdiction of Director of Fire Services • OCs / owners / occupiers should follow the directives in the statutory directions and engage a project consultant or an AP (if considered necessary) for the follow up procedures. The explanatory notes attached to the directions provide useful advice on compliance.

• Registered FSI Contractors should be appointed to carry out the improvement works relating to ﬁ re service installations. ( Chapter One – Section 2, page 13 )

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• If the work involves a change of the FSI layout or location of the ﬁ xed equipment, the FSI contractor should submit FSI drawings to the Director of Fire Services for approval.

• Upon completion of the improvement works, the FSI contractor should issue a Certiﬁ cate of Fire Service Installations and Equipment (FS 251) to the OCs / owners / occupiers with a copy to the Director of Fire Services for arrangement of a compliance inspection.

• OCs / owners / occupiers should ensure compliance with the expiry date speciﬁ ed in the directions.

Fire Safety Construction Requirements under the Jurisdiction of Director of Buildings • OCs / owners / occupiers should follow the directives in the statutory directions and engage a project consultant as necessary for the follow up procedures. The explanatory notes attached to the directions provide useful advice on compliance.

• If the building works for compliance affect the structure of the building (such as addition of sprinkler water tanks / pump houses or alteration of staircases), an AP/RSE must be engaged to submit building plans for approval and supervise the works to be carried out by a registered contractor. Prior consent from the Building Authority must be obtained before the commencement of works.

• OCs / owners / occupiers should observe the deadline for compliance as speciﬁ ed in the directions.

• For improvement items that require provision of certifi ed fi re resistant materials such as doors, staircase windows, and enclosure of services in staircase, test reports/certifi cates issued by accredited laboratories (under the Hong Kong Laboratory Accreditation Scheme) and suppliers’ certifi cates should be produced. The project consultant, AP or RSE acting in the interest of the OCs / owners / occupiers should ensure that the material installed and installation method match the specifi cation as stated in the reports/certifi cates.

• Should OCs / owners / occupiers of target buildings or premises under the FS(CP)O and FS(B)O plan to embark on building maintenance works and wish to carry out the improvement works in one go before receipt of the directions, it is advisable for them to approach FSD and BD.

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Chapter 2 C h a Small Scale pt e Maintenance r 2 Works

Chapter Objectives

• Understand the key issues for small scale repair works • Know the control measures to prevent possible abuse Chapter 2 PART 1 Small Scale Maintenance Works

Small Scale Maintenance Works • As building maintenance projects are usually complicated in nature and require professional input, it is advisable for OCs to employ a qualified consultant to design, implement and supervise the works.

• If the maintenance works are not complicated in nature and do not affect the building structures, and the OC decides not to employ a consultant, it should select a contractor, following the statutory requirements laid down in the BMO and the Code of Practice for Procurement of Supplies, Goods & Services ( Annex 3), and adopt the safeguards against abuse recommended in Chapter One – Section 2 Page 22.

• Sample documents for small scale maintenance works Annex 8.

Need help : Consult HKHS for technical advice Chapter 5 – Page 55

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Key Control Measures Important • The requirements laid down in the "Code of Practice for Procurement of Supplies, Goods & Services" ( Annex 3 ) should be followed Note (e.g. the minimum number of contractors to be invited for bidding).

• The items of work required and their speciﬁ cations, if available, should be clearly deﬁ ned in writing.

• Written quotations should be obtained from tenderers. Where appropriate, the tenderer should be required to submit working drawings, proposed materials and their specifications (e.g. the brand names of pipes, pumps, paints, tiles, glass panels, locks and switches). These drawings and speciﬁ cations should form a part of the contract agreement to be signed with the successful contractor.

• The contractor should be required to ensure that all the proposed materials meet statutory requirements, if any, and are ﬁ t for the purpose stated in the contract.

• The contractor should be required to provide material samples for OC’s consideration.

• The deadline for submission of quotations should be speciﬁ ed.

• There should be adequate security measures to prevent leakage or tampering of quotations which should be kept under lock as soon as they are received. If a fax machine is used for receiving quotations, it should be placed in a secured area with restricted access.

• OC/MC members / PMC staff involved in the procurement exercise should be required to declare conﬂ ict of interest. Annex 12

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Chapter 3 PART 2 Corruption Prevention Concerns

Introduction Building maintenance projects, as revealed in past ICAC cases, are corruption prone, and the amount of corrupt money involved could be very substantial.

With appropriate safeguards built into the tendering and contract administration procedures, the risk of corruption and fraud can be reduced to the minimum.

The cases and scenarios described in this chapter demonstrate the importance of complying with the law and implementing procedural safeguards as recommended in Chapter 1 to prevent corruption.

Cases in Perspective Why is corruption prevention a concern for OCs, flat owners and tenants? Being a flat owner, an office bearer of the MC or an employee of a PMC, what would you do in the following situations?

Case 1 The Senior Managers of a consultancy ﬁ rm and a construction company conspired to offer bribes to a senior manager of a Corrupt Dealings PMC and office bearers of the OC of a residential building for their assistance in securing consultancy and renovation contracts.

The corrupt deal was unearthed. The Senior Manager of the consultancy ﬁ rm pleaded guilty to corruption offences and was sent to jail for 12 months.

Both Senior Managers of the construction company and the PMC were also convicted of bribery offences and were sent to jail for nine months.

Case 2 An OC Chairman accepted a television set, a free trip to Accepting Thailand and two loans from a contractor for assisting the Advantages latter to secure a renovation contract worth $5.35 million. The Chairman arranged an associate of the contractor to attend the owners’ meeting by way of proxy so as to persuade the ﬂ at owners to select the corrupt contractor.

Both the OC Chairman and the contractor were convicted of bribery offences. The contractor was sent to jail for 18 months and the OC Chairman 24 months.

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Case 3 A director of a consultancy ﬁ rm solicited and accepted $800,000 from a contractor as a reward for assisting the latter to secure a Collusion $4 million renovation contract and ensure subsequent smooth compromising payment processing irrespective of the quality of works. quality of works The director was convicted and sent to jail for nine months.

Case 4 Consultant “B” assisted an OC to organize a tender exercise to select a renovation contractor. Before inviting tenders, "B" Tender rigging approached an associated contractor and solicited a bribe and substandard (about 15% of the project sum) in return for assisting the latter works to secure the contract and accepting substandard works.

“B” then arranged other associated contractors to submit dummy bids to ensure the bid submitted by the colluding contractor was the lowest.

In fact, the project cost of this “lowest” bid was inflated. As a result, the OC had paid much more than required without getting quality works.

Case 5 A consultancy ﬁ rm, which was controlled by non-professionals, appointed retired APs as the “directors” of the firm, but they Unethical were not actually involved in the daily operations. These APs’ behaviour role was only to sign the statutory forms for submission to BD to comply with the requirements in the Buildings Ordinance. For example, they certified satisfactory completion of the renovation works carried out by the contractors (which were associates of the consultancy ﬁ rm) without actually conducting the required supervision and inspection.

The absence of supervision and inspection by the consultant resulted in substandard works. The OC was required to appoint another contractor to carry out rectiﬁ cation works, giving rise to additional cost.

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Risks and Malpractice Past cases have revealed a number of risk areas and malpractice in building maintenance projects. OCs / owners are advised to watch out for the following risks :

Risks Examples / Scenarios Prevention Tips

• OC members / PMC employees corruptly collude with consultants/ contractors in the submission of tenders Chapter 1 - Tender rigging Section 2 • With the collusion and undue assistance of the consultant, only colluding contractors were invited to bid

Leakage of tender • OC members / PMC employees corruptly Chapter 1 - information / leak the tender prices of other bidders and Section 2 tampering with allow the colluding consultant/contractor tenders submitted to change its tender price

Biased tender evaluation / lack • OC members / PMC employees corruptly Chapter 1 - Section 2 of pre-determined make biased tender evaluation to favour a objective evaluation colluding consultant/contractor criteria

Accepting • A staff member of the consultant corruptly Chapter 1 - substandard works relaxes site supervision and accepts Section 3 substandard works

• A staff member of the consultant corruptly certifies inflated claims for payment Certifying inﬂ ated Chapter 1 - without checking the work completed Section 3 payment claims beforehand and expedites the processing of payment applications.

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Chapter 4 PART 2 Integrity Management

Anti-bribery Legislation Prevention of Bribery Ordinance (Cap 201) (POBO) • The POBO not only deals with bribery of government/public officials, but also private sector corruption.

• Section 9 of POBO prohibits the solicitation and acceptance of advantage by an agent in connection with his principal’s business. Any person offering such an advantage to any agent also commits an offence. In the context of an OC, an MC member is an agent of the OC.

• The key points of the anti-bribery legislation relating to private sector corruption is highlighted below for easy reference.

Section 9 of POBO

• any agent (e.g. an MC member or an employee)

• without the permission of his principal (e.g. the OC or the employer) or any reasonable excuse Key Points • solicits or accepts any advantage

• as a reward for abusing his authority

• shall be guilty of an offence

Penalty • a maximum ﬁ ne of $500,000 and imprisonment for 7 years

Extracts of the relevant sections Annex 10

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Points to Note

• generally refers to an employee, such as staff employed to provide cleaning service to the building.

"Agent" • also refers to individual MC member.

• a company and its principal may also be regarded as an agent of another company under appropriate circumstances.

• generally refers to an employer, such as the OC, property "Principal" management company.

• refers to anything that is of value such as money, gift, "Advantage" commission, loan, employment, service or favour etc., except entertainment.

• refers to the provision of food or drink for consumption on "Entertainment" the spot when it is provided, and any other entertainment connected with such provisions.

• professional / trade or customary practice is not a defence Custom for offering or accepting advantage. The court shall make constitutes no the judgement based on whether the principal’s permission is defence given.

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Code of Conduct • As the principal, any OC and any other building management body should lay down guidelines on acceptance of advantages and declaration of conflict of interest for its agents (e.g. MC members, consultants, contractors, the PMC appointed). Such guidelines can be issued in the form of a code of conduct or an instruction. Sample Code of Conduct for use by OCs in Annex 11

• It is also advisable for OCs to require the PMCs, consultants and contractors appointed to issue a Code of Conduct to its employees. OCs, PMCs, consultants and contractors may contact the Advisory Services Group of the ICAC for assistance. Annex 19 - More details of the Advisory Services Group Chapter 5, page 56

Avoid and Manage Conflict of Interest What is a Conflict of Interest ? • A confl ict of interest situation arises when the interest of the OC competes with or is in confl ict with the fi nancial or personal interests of a member of the OC/MC, and those of his relatives or close personal friends. The same applies to consultants and contractors.

• An agent (e.g. MC members of the OC or PMC staff) should be alert to situations where his private interest conﬂ icts with that of his principal (i.e. the OC or the PMC). Failure to avoid or declare conflict of interest could lead to allegations of corruption against OC members or PMC staff.

• It is important for MC members and PMC staff to understand what would give rise to conﬂ ict of interest and establish a mechanism to manage such conﬂ icts.

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A Mechanism for OC / MC Members • OC / MC members involved in a tender exercise for the selection of consultants or contractors, e.g. members of the Working Committee, should declare to the secretary of the OC any conﬂ ict of interest and withdraw from the evaluation of tenders and monitoring of the maintenance work.

• The secretary should report the case to the chairman for a decision on the action to take, such as electing another member as a replacement.

• Any report of conﬂ ict of interest and actions taken should be properly recorded.

• The same requirements on declaration of conﬂ ict of interest should apply to the PMC’s employees, in particular those involved in tender exercises.

• Sample Form for Declaration of Conﬂ ict of Interest in Annex 12

Examples of Conflict of Interest Situations • An OC/MC member takes part in the selection of a consultant/ contractor, and one of the bidders is his family member, relative or close personal friend.

• An OC/MC member, or his family member, relative or close personal friend has shares in the business of any bidder, consultant or contractor.

• The PMC (or his associated companies, associates or associated persons) has any interest, ﬁ nancial or personal, in one of the tenderers bidding the consultancy agreement or works contract.

More examples are provided in Annex 13

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A Mechanism for Consultants and Contractors • As a ﬁ rst step, OCs should build in probity and anti-collusion clauses in the tender documents and consultancy agreement / works contract, covering prohibition of acceptance of advantage, and declaration of conﬂ ict of interest provisions. Details in Annexes 6d, 6i, 7c & 7e

• OCs should be aware of the possible conflict of interest between the consultant and contractor. In selecting a contractor, the consultant should be required to declare any actual or potential conﬂ ict of interest with the bidding contractors.

• It is also advisable to require the consultant to declare any conflict of interest to OC members.

Examples of Conflict of Interest Situations • The consultant (or his associated companies, associates or associated persons) has any interest, ﬁ nancial or personal, in one of the contractors who is tendering for the works contract.

• The consultant (or his associated companies, associates or associated persons) is providing advisory services to one of the tenderers.

• The consultant (or his associated companies, associates or associated persons) has a ﬁ nancial interest in the selected contractor’s business.

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Ethical Dilemma • When implementing a building maintenance project, OC office bearers and PMC staff often encounter legal and ethical issues, such as corruption and conflict of interest. Examples of such situtaions are discussed in Annex 14 .

Think Before You Act How to handle offers of advantage or conﬂ ict of interest situation? Annex 15

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Checklist

Is there a code of conduct or guideline on integrity management?

Has the code been endorsed by a resolution in a meeting of owners held in accordance with the BMO?

Does the code/guideline cover essential issues including : offering, solicitation and acceptance of advantage?

acceptance of entertainment?

declaration of conﬂ ict of interest?

protection of information and keeping of proper account/ records?

channel of complaint?

Is there a form for declaration of conﬂ ict of interest?

Are there records kept on decisions on managing conﬂ ict of interest? Are these records open for inspection?

Has the code/guideline been effectively communicated to all agents?

Is there a person/committee delegated to deal with conﬂ ict of interest declarations, enquiries and complaints and disciplinary actions relating to the code/guideline?

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Chapter 5 PART 3 Assistance and Enquiry

Financial Assistance Buildings Department

Building Safety Loan Scheme The Scheme provides loans to individual owners of private buildings for carrying out maintenance and repair works to reinstate or improve the safety conditions of their buildings and/or private slopes.

Individual owners may apply for loans from the Director of Buildings to carry out such works voluntarily, or in compliance with statutory orders, including building and slope repairs, maintenance and upgrading works on fire service installations, lift installation, electrical installation and gas risers, regular slope maintenance works and removal of unauthorized building works (Chapter 1 – Sections 4 & 5 are relevant).

Hotline : 2626 1579 Get the application form from http://www.bd.gov.hk/english/services/index_bsils.html Annex 17(a) – A summary of the Building Safety Loan Scheme

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Hong Kong Housing Society

Building Management and Maintenance Scheme HKHS has launched the Building Management and Maintenance Scheme which provides incentives and loans to encourage the owners to properly manage and maintain their buildings.

(a) Building Management Incentive Scheme subsidizes $3,000 for the successful formation of OC.

(b) Building Maintenance Incentive Scheme subsidizes OCs with 20% of the total project cost or $3,000 per residential flat, whichever is lower, for repair works of the common areas of the building related to safety, hygiene and environmental protection. The scheme also provides a subsidy of 50% of the insurance premium for public liability insurance for common areas of the building, subject to a ceiling of $6,000 p.a. for not more than 3 years. Furthermore, a subsidy amounting to 50% of the contribution for the repair of common parts of the building would be granted to the eligible elderly owners, subject to a ceiling of $10,000.

(c) Home Renovation Loan Scheme provides interest free loan to encourage owners to carry out interior renovation of their ﬂ ats to improve the safety and hygienic conditions. Besides, a subsidy amounting to 50% of the loan subject to a ceiling of $10,000 would be granted to the eligible elderly loan recipient.

Hotline : 2882 1717 Get more details from : http://bmms.hkhs.com/eng/index.html

Annex 17(b) – A summary of the Building Management and Maintenance Scheme

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Urban Renewal Authority (URA)

Building Rehabilitation Schemes URA operates several schemes to provide free technical assistance and subsidies to property owners to carry out maintenance works for alleviating the problem of urban decay and extending the useful life of buildings located within the URA Scheme Areas in Yau Ma Tei, Mongkok, Tai Kok Tsui, Ma Tau Kok, Shum Shui Po, Tsuen Wan, Kwun Tong, Wanchai, and Central & Western District.

(a) Building Rehabilitation Materials Incentive Scheme (BRMIS) provides free incentive materials including paint, drainage pipes, ﬂ ushing water / fresh water pipes and water- prooﬁ ng materials, value up to 20% of the contract sum or $3,000 per unit whichever is the lower, and technical advice to encourage owners to undertake comprehensive maintenance in the common areas of buildings.

(b) Building Rehabilitation Loan Scheme (BRLS) provides interest free loans to registered domestic owners (up to $100,000 per unit) for the cost of rehabilitation works in the common areas of the building, and for carrying out associated maintenance works within their ﬂ ats. (No means tests on applicants but owners granted loans under the Buildings Department’s Building Safety Loan Scheme are not eligible.)

(c) Building Rehabilitation Hardship Grant Scheme provides a hardship grant of up to $10,000 to individual owners under the schemes of BRMIS or BRLS who are in ﬁ nancial difﬁ culties.

(d) Public Liability Insurance Subsidy Scheme subsidizes half of the insurance premium up to $6,000 of the BRMIS/BRLS buildings for three consecutive years.

Hotline : 2588 2333 Get more details from : http://www.ura.org.hk/html/c100000e1e.html

Annex 17(c) – A summary of the Building Rehabilitation Schemes

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Technical Advice Hong Kong Housing Society To help OCs / owners in building management and maintenance matters, HKHS provides the following services :

• Provide general guidance on the formation of OC

• Provide samples of documents required for the purpose of OC formation

• Attend the meeting of owners for the formation of OC and give advice on the procedures for the appointment of an MC

• Assist in searching land registers and the registration of OC in the Land Registry

• Conduct preliminary site survey and recommend necessary repair items with rough cost estimate

• Provide general guidance on procurement of works contract, e.g. appointment of consultants and contractors

• Advise on handling statutory orders issued by government departments

• Refer the case to professional institutions for further advice on a need basis or upon request of owners / OCs, e.g. the Law Society of Hong Kong, the Hong Kong Institute of Certiﬁ ed Public Accountants, the Hong Kong Institution of Engineers, the Hong Kong Institute of Surveyors, etc.

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Probity Advice Independent Commission Against Corruption To help OCs and other building management bodies prevent corruption in building maintenance and renovation, the ICAC provides the following free services :

• Drawing up probity guidelines or a code of conduct for OCs, consultants and contractors

• Briefing or training for building management personnel to promulgate ethical practices in building management and maintenance

• Consultation service on corruption and fraud prevention for OCs, consultants and contractors, e.g. recommending best practices and procedural safeguards to enhance internal controls

• Handling related enquiries and corruption complaints in strict conﬁ dence

Integrity and Quality Building Management and Maintenance Enquiry Hotline: 2929 4555

Report Corruption Hotline: 2526 6366

Get more details from: www.bm.icac.hk

Annex 18 - Contact of ICAC

Tailor-made corruption prevention service • The Advisory Services Group (ASG) of the ICAC provides free and confidential corruption prevention advice to organizations (e.g. consultants, contractors, and PMCs) on the ways to enhance checks and balances.

ASG Hotline : 2526 6363

Details of ASG services in Annex 19

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Training Workshops Training workshops jointly organised by the HKHS and ICAC with participation from the departments concerned (e.g. HAD, BD and FSD) will be arranged regularly in different districts. For more details, please call the Hotline : 2929 4555

Useful Contacts A list of useful contacts in Annex 20

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Annex

The suggested terms and formats of letters and documents for the implementation

of building maintenance works in this Toolkit are for reference only. Advice should be sought from Project Consultants, if employed by the building owners for the proposed works, on whether such terms and formats should be modified to suit the special circumstances in each maintenance project. If no Project Consultant has been employed, the building owners should at least consult an experienced member from the OC or appropriate person with experience in contract administration. Users of this Toolkit should also seek legal advice as and when necessary. The HKHS and ICAC will not accept any liability, legal or otherwise, for loss occasioned to any person acting or refraining from action as a result of any material in this publication.

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:05 PM Annex 1 Extracts from Building Management Ordinance (Cap 344)

Section 20A

(1) The procurement of all supplies, goods or services required by a corporation in the exercise of its powers and the performance of its duties under the deed of mutual covenant (if any) or this Ordinance shall comply with such standards and guidelines as may be specified in a Code of Practice relating to such procurement.

(2) Subject to subsection (2A), any supplies, goods or services referred to in subsection (1) the value of which exceeds or is likely to exceed — (a) the sum of $200,000 or such other sum in substitution therefor as the Authority may specify by notice in the Gazette; or (b) a sum which is equivalent to 20% of the annual budget of the corporation or such other percentage in substitution therefor as the Authority may specify by notice in the Gazette, whichever is the lesser, shall be procured by invitation to tender.

(2A) Subsection (2) does not apply to any supplies, goods or services which but for this subsection would be required to be procured by a corporation by invitation to tender (referred to in this subsection as "relevant supplies, goods or services") if — (a) the relevant supplies, goods or services are of the same type as any supplies, goods or services which are for the time being supplied to the corporation by a supplier; and (b) the corporation decides by a resolution of the owners passed at a general meeting of the corporation that the relevant supplies, goods or services shall be procured from that supplier on such terms and conditions as specified in the resolution, instead of by invitation to tender.

(2B) Where any supplies, goods or services are required under subsection (2)(b) to be procured by invitation to tender, whether a tender submitted for the purpose is accepted or not shall be decided by a resolution of the owners passed at a general meeting of the corporation.

(3) (Repealed 5 of 2007 s. 16)

(4) All tender documents, copies of contracts, accounts and invoices and any other documents in the possession of a corporation and relating to the procurement of supplies, goods and services shall be kept by the corporation for such period, being not less than 6 years, as the corporation may determine.

(5) A contract for the procurement of any supplies, goods or services shall not be void by reason only that it does not comply with subsection (1).

1 Annex 1 — page 1

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:05 PM (6) Where any supplies, goods or services are required under subsection (2) to be procured by invitation to tender, a contract for the procurement of the supplies, goods or services which does not comply with subsection (2) or (2B) — (a) subject to any resolution passed by the corporation under paragraph (b) or any order made by the court under subsection (7), shall not be void by reason only that it does not comply with subsection (2) or (2B); (b) subject to any order made by the court under subsection (7), may be avoided by the corporation by a resolution of the owners passed at a general meeting of the corporation but only for the reason that it does not comply with subsection (2) or (2B).

(7) In any legal proceedings in relation to a contract for the procurement of any supplies, goods or services to which subsection (2) or (2B) applies, the court may make such orders (including whether the contract is void or voidable) and give such directions in respect of the rights and obligations of the contractual parties as the court thinks fit having regard to all the circumstances of the case, including (but not limited to) the following factors — (a) whether the supplies, goods or services have been procured by invitation to tender; (b) whether a general meeting of the corporation has been convened to consider the procurement of the supplies, goods or services; (c) whether the Code of Practice referred to in subsection (1) has been complied with; (d) whether the contract has been split, for the sole purpose of avoiding the compliance of the requirements in subsection (2) or (2B), from a contract which should have been made for the procurement of supplies, goods or services of greater value; (e) whether the supplies, goods or services were urgently required; (f) the progress of any activities or works in relation to the supplies, goods or services; (g) whether the owners have benefited from the contract; (h) whether the owners have incurred any financial loss due to the contract and the extent thereof; (i) whether the supplier of the supplies, goods or services under the contract has acted in good faith; (j) whether the supplier of the supplies, goods or services under the contract has benefited from the contract; and (k) whether the supplier of the supplies, goods or services under the contract has incurred any financial loss due to the contract and the extent thereof.

(8) For the purposes of subsection (7), where the court makes an order that the contract is voidable at the instance of the corporation, it shall also make an order that a general meeting of the corporation be convened and held in such manner as the court thinks fit, so as to decide whether the contract is to be avoided.

(9) For the avoidance of doubt, subject to section 29A, any person who enters into a contract for the procurement of any supplies, goods or services otherwise than in compliance with subsection (2) or, if applicable, subsection (2B) may be personally liable for any claims arising from the contract.

Annex 1 — page 2 1

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:05 PM Annex 2 Extracts from Building Management Ordinance (Cap 344)

Section 44

(1) The Authority may from time to time prepare, revise and issue Codes of Practice giving guidance and direction as to — (a) the procurement of supplies, goods and services required by a corporation including such procurement by invitation to tender and the tender procedure in respect thereof; (b) the standards and practices of management and safety that are to be observed and followed by a corporation including standards and practices relating to — (i) building management; (ii) building safety; (iii) fire safety; (iv) slope safety; (v) lifts and escalators; and (vi) utilities and other installations in the common parts of a building.

(2) A failure on the part of any person to observe any Code of Practice issued under subsection (1) shall not of itself render that person liable to criminal proceedings of any kind but any such failure may, in any proceedings whether civil or criminal including proceedings for an offence under this Ordinance, be relied upon as tending to establish or to negative any liability which is in question in those proceedings.

2 Annex 2 — page 1

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:05 PM Annex 3 Code of Practice on Procurement of Supplies, Goods & Services

This Code of Practice on Procurement of Supplies, Goods and Services is issued by the Secretary for Home Affairs, as the Authority under the Building Management Ordinance (Cap 344) (BMO), under section 44(1)(a) of the Ordinance.

(1) All owners' corporations (OC) shall comply with this Code of Practice.

(2) All OCs shall comply with section 20A of the BMO in relation to the procurement of supplies, goods and services.

(3) A management committee (MC) shall conduct a tender exercise in an open and fair manner.

(4) A member of the MC shall not solicit or accept any advantage from any supplier or contractor in relation to the tender.

(5) Any agent or employee of the OC is prohibited from soliciting or accepting any advantage in connection with his duty unless with the permission of the OC. An agent or employee shall also declare any conflict of interest relating to his duties.

(6) The MC shall prepare an invitation to tender setting out the types of supplies, goods or services required, the respective estimated costs, the period open for tender and other terms and conditions of the relevant contract. A copy of the invitation to tender shall be displayed in a prominent place in the building.

(7) A tender shall be in writing and be sealed and deposited in a strong double locked box marked 'Tender-Box (投標箱)' provided for that purpose only and such box shall be securely located in a prominent place in the building. The two keys of the tender-box are to be separately kept by the chairman, secretary or treasurer.

(8) Where it is impracticable or difficult to comply with the requirement under paragraph 7 above, the OC may, by a resolution passed at a general meeting of the corporation, accept tenders handed in or sent by post to the registered office of the OC. The tenders shall be properly acknowledged and kept safely.

(9) The minimum number of tenders to be invited shall be as follows – (a) three in the case of a contract for the procurement of supplies, goods or services the value of which exceeds $10,000 but does not exceed $200,000; or (b) five in the case of a contract for the procurement of supplies, goods or services the value of which exceeds $200,000.

(10) The closing date and time for acceptance of tenders shall be clearly stated in the invitation to tender. Late submissions shall not be accepted.

Annex 3 — page 1 3

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:05 PM (11) Where the number of valid tenders obtained is fewer than the number of tenders stipulated in paragraph 9, the MC shall pass a resolution to accept or reject the tender exercise.

(12) All tenders shall be opened at the same time in the presence of at least three members of the MC who shall countersign and date each of the tenders.

(13) A tender whose value does not exceed the sum stipulated in section 20A(2)(b) of the BMO shall be submitted to the MC which may accept or reject it.

(14) An MC shall not split a contract of procurement from a contract which should have been made for the procurement of greater value for the sole purpose of avoiding the compliance of requirements in section 20A of the BMO.

(15) A tender which requires approval from a general meeting of the corporation must be passed by majority votes. Where there are more than two alternatives and no option receives majority votes in the first round of voting, the general meeting of the corporation will have to conduct a second round of voting in order to comply with the majority requirement. Some plausible methods of voting are – (a) Progressive elimination – After the first round of voting, the general meeting of the corporation may eliminate the option with the least number of votes and then carry out the second round of voting. If there is no option which receives majority votes, another round of voting will be carried out, with one more option being eliminated. If this goes on, only two options will be left in the final round of voting. Either one of the options will receive majority votes. (b) Short-listing – After the first round of voting, the general meeting of the corporation may short-list the two options which gain the greatest number of votes for a second round of voting. This also means that the ultimate choice fulfils the majority requirement. (c) Confirmation – A second round of voting could be carried out to confirm the option which has attained the greatest number of votes in the first round. This also ensures that majority votes are achieved.

(16) A member of the MC shall disclose in writing to the MC any personal or pecuniary interest that he may have in any of the tenders to be considered by the MC or the corporation. An MC member who has indicated a personal or pecuniary interest in the tender shall abstain from voting in the selection of such tender at an MC meeting. The building manager (if any) shall also be required to disclose in writing to the MC any personal or pecuniary interest that he may have in any of the tenders to be considered by the MC or the corporation.

(17) The MC shall maintain and keep in safe custody for such period, being not less than six years, as the OC may determine, all tender documents, copies of contracts, accounts and invoices and any other documents in the possession of the OC and relating to the procurement of supplies, goods and services.

(18) The MC shall permit the Authority, the tenants' representative, an owner, a registered mortgagee or any other person authorized in writing by an owner or a registered mortgagee to inspect the documents referred to in paragraph 17 at any reasonable time.

(19) The documents referred to in paragraph 17 shall contain sufficient information to enable the person doing inspection to calculate the financial liability (including any future financial liability) of the OC at the time of inspection.

3 Annex 3 — page 2

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:06 PM Annex 4 Extracts from Frequently Asked Questions on Building Management (Amendment) Ordinance 2007 issued by Home Affairs Department

Chapter 6: Procurement of Supplies, Goods and Services by OCs

What is the statutory threshold for OCs to procure by invitation to Q1: tender? A: Threshold Invitation to tender Meeting of OC > $200,000 ✓ – > 20% of the annual budget of OC ✓ ✓ The table above summarizes the statutory thresholds with regard to procurement of supplies, goods and services by OCs. According to section 20A(2) of the BMO, any procurement which exceeds or is likely to exceed – (a) the sum of $200,000; or Section 20A(2) (b) a sum equivalent to 20% of the annual budget of the OC, and (2B) whichever is the lesser, shall be procured by invitation to tender.

For any procurement that exceeds the sum of 20% of the annual budget of the OC, whether a tender is accepted or not shall be decided by a resolution of the owners passed at a general meeting of the corporation.

All OCs must follow the above statutory requirements in procuring supplies, goods or services for the corporation. If the service contract is $600,000 for 4 years, does the OC have to Q2: procure by invitation to tender? A: Yes. As the service contract exceeds the statutory threshold of $200,000, the OC shall Section 20A(2) procure by invitation to tender. For single-block building where the annual budget is lower, will Q3: there be another statutory threshold for procurement by the OCs? A: The statutory threshold for procurement is applicable to all buildings, regardless of their number of units. Q4: What are the requirements for conducting a tender exercise? A: OCs shall comply with the requirements specified in the Code of Practice on Procurement of Supplies, Goods and Services published by the Home Affairs Department in conducting a tender exercise. The Code of Practice is available at all District Offices and at the website www.buildingmgt.gov.hk. In conducting a tender exercise, is it a must to carry out open Q5: tender? Is quotation or restricted tender acceptable? A: In conducting a tender exercise, it is advisable to carry out open tender. However, quotation or restricted tender may be accepted with care. For some of the procurement exercise, such as procurement of legal services, quotations may be a more common form of invitation to tender. Q6: Could the MC form a working group to carry out the procurement? A: There is no provision in the BMO which empowers an MC to delegate its powers and duties to a working group. If an MC wants to form a working group to handle the administrative work of the procurement exercise, it is important to observe the requirements stipulated in the BMO and the Code of Practice on Procurement of Supplies, Goods and Services with regard to the procedures of the tender exercise and the acceptance of the tenders submitted.

For procurement whose value exceeds a sum equivalent to 20% of the annual budget of the OC, whether the tenders submitted are accepted or not shall be decided by the general meeting of the corporation. For procurement whose value is lower than 20% of the annual budget of the OC, the MC shall decide whether tenders are accepted or not. The working group does not have any statutory duty or power to perform the functions of an MC.

Annex 4 — page 1 4

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:06 PM Do MC members have to declare any interest in the tendering Q7: exercise? A: The Code of Practice on Procurement of Supplies, Goods and Services provides that a member of the MC shall disclose in writing to the MC any personal or pecuniary interest that he may have in any of the tenders to be considered by the MC or the OC. An MC member who has indicated a personal or pecuniary interest in the tender shall abstain from voting in the selection of such tender at a meeting of the MC. Can MC members accept gifts, discounts or free services (e.g. Q8: decorating an MC member's flat) from tenderers or contractors? A: MC members should not solicit or accept any advantage from any tenderer, supplier or contractor in relation to the tender exercise. Examples of an advantage include money, loan, reward, gifts, discounts or free services. Solicitation or acceptance of any advantage may contravene the Prevention of Bribery Ordinance (Cap 201). Q9: Could an OC waive the tendering requirement for urgent works? A: No. Any procurement which exceeds or is likely to exceed the statutory threshold (i.e. the lesser of $200,000 or a sum equivalent to 20% of the annual budget of the OC) shall be procured by invitation to tender. Section 20A(2) A list of pre-qualified service providers for emergency works or repair may be drawn up to minimize the time required for sourcing and ensure that only eligible ones are invited to bid. What could the owners do if they suspect that their OC has split a Q10: large-sum contract into mini-contracts so as to avoid the tendering requirement? A: The owners may seek a declaration from the court on the validity of the mini-contracts. The court will consider all the circumstances of the case in making the decision. One of the factors that will be considered by the court, as set out in section 20A(7) of the BMO, is whether the contract has been split from a contract of greater value for the sole purpose of avoiding the compliance of requirements in section 20A(2) (i.e. procure Section 20A(2), by invitation to tender) or section 20A(2B) (i.e. tender shall be accepted or rejected by (2B) and (7) the general meeting of the corporation).

If the contract is procured through fraudulent or corrupt means, a report should be made to the Police or the ICAC. Are there any requirements for the procurement of professional Q11: service (e.g. legal service)? A: The procurement of all supplies, goods or services required by a corporation shall comply with the requirements stipulated in the BMO. There is no exception for procurement of professional service.

For the procurement of legal service, legal professionals advised that quotations in the Section 20A form of hourly/daily rate (subject to a maximum cap) or a lump sum fee could be given to the OCs to facilitate their consideration of the appointment.

Court case: Incorporated Owners of Hip Wo House v. Galant King Development Limited [HCCW 248/2006] After the tenders are received, who shall be responsible for deciding whether a tender is accepted or not? Does the MC have Q12: the authority to reject some of the tenders and only shortlist a few for the owners to choose from at the general meeting of the corporation? A: For tenders whose value does not exceed 20% of the annual budget of the OC, the MC shall decide whether tenders are accepted or not.

For tenders whose value exceeds 20% of the annual budget of the OC, whether the tenders submitted are accepted or not shall be decided by the general meeting of the Section 20A(2B) corporation. The MC does not have the authority to reject some of the tenders and all tenders have to be put up to the general meeting of the corporation. The MC may shortlist a few as recommendations to the owners, yet it will be up to the owners to decide which tender is accepted and which ones are rejected.

4 Annex 4 — page 2

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:06 PM If an OC wants to procure supplies, goods or services from an Q13: incumbent supplier, can it do so without invitation to tender? A: The OC does not have to comply with the tendering requirement stipulated in section 20A(2A) of the BMO if all of the following criteria are satisfied – (a) the relevant supplier is providing supplies, goods or services to the OC for the time being; (b) the relevant supplies, goods or services are of the same type as the supplies, goods or services that is provided by the supplier for the time being; and (c) the corporation decides by a resolution of the owners passed at a general meeting Section 20A(2A) of the corporation that the relevant supplies, goods or services shall be procured from that supplier on such terms and conditions as specified in the resolution, instead of by invitation to tender.

Despite the above, it is advisable for OCs to conduct tendering exercise so as to obtain the more updated market information. If an OC has previously procured from ABC company 3 years ago, Q14: can it now engage ABC company again for a contract of $300,000 without invitation to tender? A: No, the OC shall procure by invitation to tender as ABC company is not a supplier engaged by the OC for the time being. The criteria for waiving the tendering Section 20A(2A) requirement are not satisfied. If an OC is now procuring security services from ABC company, Q15: can it engage ABC company for a cleansing contract of $300,000 without invitation to tender? A: No, the OC shall procure by invitation to tender as security services and cleansing services are not of the same type. The criteria for waiving the tendering requirement Section 20A(2A) are not satisfied. Can the MC negotiate for better terms and conditions in engaging Q:16 the incumbent supplier for a new contract? Does the MC need to inform the owners about the new terms and conditions? A: The MC may negotiate with the incumbent supplier for better terms and conditions in signing the new contract. The terms and conditions shall be approved by the owners Section 20A(2A) at a general meeting of the corporation should the tendering requirement be waived. If the owners do not agree to the continuous engagement of the Q17: incumbent supplier at the general meeting of the corporation, what should the MC do? A: In such case, it means that the criteria for waiving the tendering requirements are not Section 20A(2) satisfied. The MC should thus comply with the statutory requirement under section and (2A) 20A(2) of the BMO and procure by invitation to tender. If an OC is going to continuously engage the incumbent supplier for a contract whose value exceeds $200,000 but is below 20% of the Q18: annual budget of the OC, then does it have to convene a general meeting of the corporation? A: If the OC wants to waive the tendering requirement, then the MC has to convene a general meeting of the corporation. At the meeting, the owners have to pass a resolution that the relevant supplies, goods or services shall be procured from the incumbent supplier on such terms and conditions specified in the resolution, instead of by invitation to tender. Section 20A(2), (2A) and (2B) If, however, the OC decides to carry out the tendering exercise, then there is no need to convene a general meeting of the corporation, as tender whose value does not exceed 20% of the annual budget shall be submitted to the MC which may accept or reject them. If a procurement contract does not comply with the Code of Q19: Practice on Procurement of Supplies, Goods and Services, will the contract be void? A: A contract for the procurement of any supplies, goods or services shall not be void by Section 20A(5) reason only that it does not comply with the Code of Practice.

Annex 4 — page 3 4

ICAC_Eng_Annex.indd 3 2008/4/9 8:42:06 PM What are the consequences if an OC does not comply with the Q20: Code of Practice? A: A failure of an OC to comply with the Code of Practice shall not of itself render the OC liable to criminal proceedings of any kind. Yet, such failure may be relied upon Section 44(2) in any legal proceedings as tending to establish or to negative any liability which is in questions in such proceedings. If a procurement contract does not comply with the statutory requirements under section 20A(2) (relating to tendering) or 20A(2B) Q21: (relating to the passing of resolution at meeting of the corporation), will the contract be void? A: The contract shall not be void by reason only that it does not comply with section 20A(2) or (2B). However, the contract may be avoided by the corporation by a resolution passed at a general meeting of the corporation in accordance with section 20A (6) of the BMO. Section 20A(6) It is important for the OC and the owners to fully understand the implication of invoking section 20A(6) before they pass a resolution to such effect. OCs are strongly recommended to seek independent legal advice and explain to owners the possible consequence, including the legal and financial implications on the OC and the owners. If a procurement contract does not comply with the statutory Q22: requirements under section 20A(2) and (2B), what could the owners do? A: The owners may adopt the following courses of action –

(a) Not less than 5% of the owners may request the chairman to convene a general meeting of the corporation in accordance with paragraph 1(2) of Schedule 3 to the BMO. The corporation may then decide to avoid the contract by a resolution passed at the general meeting in accordance with section 20A(6) of the BMO. It is important to note that the corporation may only avoid the contract for the reason that the contract does not comply with section 20A(2) or (2B).

(b) Owners may also seek a declaration from the court on the validity of the contract. The court will take into account all the circumstances of the case, including the list Section 20A(6) of factors stipulated under section 20A(7) of the BMO. The court may then make and (7) orders (including whether the contract is void or voidable) or give directions in respect of the rights and obligations of the contractual parties.

The above courses of action are not necessarily exclusive to each other. Even if a resolution is passed or rejected by the corporation, owners may still seek a declaration from the court. However, if the court has given any order with regard to the case, then the resolutions passed by the corporation would be subject to the court's order.

OCs and owners are strongly recommended to seek independent legal advice on the possible consequence, including the legal and financial implications on the OC and the owners, before they take action on the above. If the owners think that the procurement contract is too expensive, Q23: can they invoke section 20A(6) and pass a resolution to avoid the contract at a general meeting of the corporation? A: No. Section 20A(6) could only be invoked for the reason that the procurement contract does not comply with the statutory requirements stipulated under section Section 20A(6) 20A(2) and (2B).

4 Annex 4 — page 4

ICAC_Eng_Annex.indd 4 2008/4/9 8:42:06 PM If a procurement contract is avoided by an OC in accordance Q24: with section 20A(6) of the BMO, does the OC still have to pay the contractor / supplier? A: If a procurement contract is avoided by an OC, the contract may still be valid for the period before the resolution is made. Thus, the OC may still have to pay for the works that have been carried out by the contractor or services that have been provided by the supplier or any compensation claimed by the contractor in accordance with the contract provisions. The amount of payment will be subject to negotiation between the OC and the contractor / supplier or any court order. Section 20A(6) It is therefore important for the OC and the owners to fully understand the implication of invoking section 20A(6) before they pass a resolution to such effect. OCs are strongly recommended to seek independent legal advice and explain to owners the possible consequence, including the legal and financial implications on the OC and the owners. If a procurement contract is declared void by the court under Q25: section 20A(7), does the OC still have to pay the contractor / supplier? A: Section 20A(7) provides that the court may make such orders and give such directions in respect of the rights and obligations of the contractual parties as the court thinks fit. Whilst the court may make an order that the contract shall be void, it may also give Section 20A(7) directions in respect of the contractual obligations (e.g. payment) between the OC and the contractor / supplier. If a procurement contract is already avoided by an OC in Q26: accordance with section 20A(6), can an individual owner still go to the court and seek a declaration over the validity of the contract? A: Yes. A resolution of the owners to avoid the contract under section 20A(6), no matter such resolution is passed or not, does not preclude an owner from making an application to the court.

It is therefore important for the OC and the owners to fully understand the implication Section 20A(7) of invoking section 20A(6) before they pass a resolution to such effect. OCs are strongly recommended to seek independent legal advice and explain to owners the possible consequence, including the legal and financial implications on the OC and the owners. Section 20A(7) sets out a list of factors which will affect the court's Q27: decision on the validity of the contract. Will all the factors be taken into account? Are there any weightings for these factors? A: The court will take into account all the circumstances of the case in making the decision. These include, but are not limited to, the factors listed out under section Section 20A(7) 20A(7). BMO does not provide for the weightings for these factors. Each case will be considered by the court on its own merit. If a person, say the chairman of the MC, enters into a procurement contract that does not comply with section 20A(2) or (2B), can Q28: the OC or the contractor claim against the chairman for any loss arising from the contract? Can the chairman claim protection under section 29A? A: Section 20A(9) provides that subject to section 29A, any person who enters into a procurement contract that does not comply with section 20A(2) or (2B) may be personally liable for any claims arising from the contract. Section 29A provides that no MC member, acting in good faith and in a reasonable manner, shall be personally liable for any act done or default made by or on behalf of the OC in the exercise or purported exercise of the powers conferred by the BMO on the OC; or in the performance or purported performance of the duties imposed by the BMO on the OC. Section 20A(9) The chairman would only be able to claim protection under section 29A of the BMO if he acts in good faith and in a reasonable manner. In the case of non-compliance with the statutory procurement requirements, although the chairman may claim that he has acted in good faith, the chance that he could successfully claim that he has acted in a reasonable manner is rather low. That said, the liability of the chairman in such a claim will ultimately be determined by the court.

Court case: 宜高物業管理有限公司訴新蒲崗大廈業主立案法團 [DCCJ 14835/2000]

Annex 4 — page 5 4

ICAC_Eng_Annex.indd 5 2008/4/9 8:42:06 PM Annex 5 Notices and Directions Issued by Other Government Departments

Apart from Buildings Department and Fire Services Department, notices or directions may be issued by other government departments. Some examples are listed below for reference.

(a) Water Supplies Department Notices may be served to registered consumers of inside services or fire services or to agents of communal services under Section 16 of Waterworks Ordinance (Cap 102) in the following situations: • unauthorized alteration of waterworks; • waste or pollution of a supply or there being such a risk; or • non-compliance of inside services or fire services with the provisions of Waterworks Ordinance.

(b) Environmental Protection Department (EPD) The following notices may be served by EPD: • under Section 3 of Water Pollution Control (Sewerage) Regulation (Cap 358AL) to enable connection to public sewage system; • under Section 10 of Air Pollution Control Ordinance (Cap 311) in respect of emission of air pollutants which may cause deposit of dust/grit or objectionable odour or have adverse health effect, etc.; or • under Section 13 of the Noise Control Ordinance (Cap 400) requiring the owner or occupier to bring his noise emissions into a state of compliance by certain date.

(c) Electrical and Mechanical Services Department (EMSD) (i) Electrical installation Notice may be served under the Electricity Ordinance (Cap 406) for lack of repair, maintenance and test and to request an owner to rectify any problem associated with an electrical installation in a building so as to ensure electrical safety. (ii) Gas installation Notice may be served under the Gas Safety Ordinance (Cap 51) for the lack of repair, maintenance and testing of piped gas or cylinder gas installation in a building so as to ensure safety. (iii) Lift installation Notice may be served under the Lifts and Escalators (Safety) Ordinance (Cap 327) for the lift installation of building not complying with the Regulations. The objective is to ensure the lifts meet safety standards.

(d) Food & Environmental Hygiene Department (FEHD) Notice may be served under the Public Health and Municipal Services Ordinance (Cap 132) for the abatement of sanitary nuisance arising from water seepage in private premises.

The above list is not exhaustive. The relevant legislations can be downloaded from the Bilingual Laws Information System at Legal Department's Website. (Web Site : http://www.legislation.gov.hk/eng/ home.htm)

5 Annex 5 — page 1

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:06 PM Annex 6 Sample Documents — Selection of Consultants

(a) Invitation of Expression of Interest for Project Consultants – Advertisement for Open Invitation

(b) Invitation of Expression of Interest for Project Consultants – Invitation Letter to shortlist Consultants

(d) Invitation of Fee Proposals

(e) Record of Invitation for Tender

(f) Tender Opening Form

(g) Tender Evaluation Form

(h) Notice to Tenderers and Owners/Occupants

(i) Ethical Commitment Clauses for inclusion in Consultancy Agreements

Annex 6 — page 1 6

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:06 PM Sample Annex 6 (a) Invitation of Expression of Interest for Pre-qualification of Project Consultants (Advertisement for Open Invitation)

Invitation of Expression of Interest Pre-qualification of Project Consultants for Repair and Maintenance Works at [Name and Address of Building / Estate]

This is to invite project consultants to express interest in undertaking the above consultancy for the project. Interested consultants please submit the following documents and information to the Owners’ Corporation on or before ______[Time & Date] at ______[Address] for pre-qualification.

(1) Background and organisation of the company (including the year of formation in Hong Kong, number of staff with professional qualification, list of associate consulting firms/subsidiaries, etc.); and CV of the key staff;

(2) Audited accounts and documents on bank credit line (for the past two years);

(3) Job reference for consultancy service of maintenance work with similar nature for the past three years, detailing the locations and total value of the maintenance works (preferably attached with the appointment letter issued by the employers, i.e. the Owners’ Corporation).

(4) Copies of relevant government registration licences, including Authorized Persons’ Register, Business Registration Certificate;

(5) *Quality assurance certification (e.g. ISO 9001);

(6) Proof of Professional Indemnity Insurance; and

(7) Company Code of Conduct for Staff (if any).

Contact for enquiry : ______[Name & Telephone number of the person authorized by the OC]

Owners’ Corporation of [Name and Address of Building / Estate]

______[Date]

(*delete as appropriate)

Drafting Note: To provide an indication of the possible scale of the project, OCs may include some basic information in the advertisement, such as the number of blocks and flats involved.

6 (a) Annex 6 (a) — page 1

ICAC_Eng_Annex.indd 1 2008/4/16 6:57:50 PM Sample Annex 6 (b) Invitation of Expression of Interest for Project Consultants — Invitation Letter to shortlist Consultants

Date: To: [Consultant's name and address]

Re : Invitation of Expression of Interest and Request for Information – Pre-qualification of Project Consultants for the Repair and Renovation Works at ______[ Name and Address of Building / Estate ]

We are going to carry out maintenance and improvement works for our building. If your company

is interested in undertaking the consultancy for the project, please submit the documents and

information listed in the Appendix to the Owners' Corporation on or before ______

[Time & Date] at ______[Address] for preliminary assessment.

In case of doubt, please contact ______[Name and telephone number

of the person authorized by the Owners' Corporation] directly.

Yours faithfully, For and on behalf of [Name of OC]

______Encl. Appendix – List of Documents / Information Required

Drafting Note: To provide an indication of the possible scale of the project, OCs may include some basic information in the letter, such as the number of blocks and flats involved.

Annex 6 (b) — page 1 6 (b)

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:06 PM Sample

Annex 6 (b) Appendix

List of Documents / Information Required

(1) Background and organization of the company (including the year of formation in Hong Kong, number of staff with professional qualification, list of associate consulting firms/subsidiaries, etc.); and curriculum vitae of the key staff

(2) Audited accounts and documents on bank credit line (for the last two years)

(3) Job reference for consultancy service of maintenance work with similar nature for the last three years, detailing the locations and total value of the maintenance works (preferably attached with the appointment letter issued by the employers, i.e. the Owners' Corporation)

(4) Copies of relevant government registration licences, including • Authorized Persons' Register • Business Registration Certificate

(5) *Quality assurance certification (e.g. ISO 9001)

(6) Proof of Professional Indemnity Insurance

(7) Company Code of Conduct for Staff (if any)

(*delete as appropriate)

6 (b) Annex 6 (b) — page 2

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:06 PM Sample Annex 6 (c) Pre-qualification Evaluation Form

______[Name of Building/Estate] Repair and Renovation Work Pre-qualification / Preliminary Assessment of Consultants

Assessment Criteria A B C D E F G H

Name of Consultant

(a) Limited company Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No

(b) Year of Formation in Hong Kong

(d) Financial information (e.g. Documentary Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No proof from banks) (e) Relevant Job Experience: No. of No. of No. of No. of No. of No. of No. of No. of - Being a consultant projects: projects: projects: projects: projects: projects: projects: projects: for repair works ______(Scope of works)

(f) Quality Assurance Certification (e.g.: Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No ISO 9001) (g) Reference Documents: - Professional Indemnity Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Insurance - Registration with Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No BD (including Authorised Person (AP) / Registered Structural Engineer (RSE)/ Registered Geotechnical Engineer (RGE)) (h) No. of associate Yes Yes Yes Yes Yes Yes Yes Yes consultant firms (No. of (No. of (No. of (No. of (No. of (No. of (No. of (No. of / subsidiaries firms:__) firms:__) firms:__) firms:__) firms:__) firms:__) firms:__) firms:__) / No / No / No / No / No / No / No / No

(i) Company code Yes / No Yes / No Yes/No Yes / No Yes / No Yes / No Yes / No Yes / No of conduct

Date :

Signature:

Name of Assessors :

Annex 6 (c) — page 1 6 (c)

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:06 PM Sample Annex 6 (d) Invitation of Fee Proposal

By Fax & By Post (Fax ______)

[Name and Address of Project Consultant]

[Date]

Our ref.:

Dear Sir/Madam,

Re : Invitation for Fee Proposal for Repair and Renovation Works at ______[Name and Address of Building/Estate]

We write on behalf of ______[Name of the Owners' Corporation] (hereafter referred to as the Employer) to invite you to submit a fee proposal in relation to the maintenance and improvement works at the subject premises.

1. Description of Repair and Renovation Works Required

[Include a general description of the repair and renovation works required and any orders / advisory letters issued by the government.]

2. Scope of Services

The scope of services covered by the fee proposal shall include the following : Stage I: Preliminary Proposal and Cost Estimate 1.1 Assist the Employer to develop the design brief. 1.2# Conduct building condition survey and identification of defects. 1.3 Submit preliminary renovation and repair proposal with sketches and program. 1.4 Conduct evening meetings with owners on the preliminary design proposal. 1.5 Submit a scheme design and a preliminary cost estimate for the Employer's consideration. 1.6 Provide recommendations and guidance for the Employer to select repair options, use of materials, equipment/installation options, etc. 1.7# Study all relevant orders/advisory letters issued by the government and incorporate their required works and cost into the design proposal and cost estimate. 1.8# To liaise with government authorities in connection with the maintenance and improvement works as necessary. (# delete if inapplicable)

6 (d) Annex 6 (d) — page 1

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:06 PM Sample

Stage II: Preparation of Detailed Design, Cost Estimate and Tendering Arrangement 2.1 Review and study relevant drawings and regulations. 2.2 Prepare a detailed design (repair details, layout plans, colour schemes, elevations, material samples) for the Employer's consideration. 2.3 Prepare a master programme for Employer's consideration. 2.4 Prepare a budget estimate for the Employer's consideration. 2.5 Prepare tender documents including the schedule of works, form of tender, tender drawings, specifications and particulars for tender for the Employer's consideration. 2.6 Conduct pre-qualification of contractors, invite tenders & conduct tender analysis, and make a recommendation for the Employer's consideration. 2.7 Inform the successful tenderer on behalf of the Employer.

Stage III: Contract Administration, Site Supervision and Construction Management 3.1 Prepare contract documents. 3.2 Conduct site inspections to monitor the progress and quality of works. 3.3 Liaison with the Management Office for arrangement of site works. 3.4 Provide advice to the Employer on variation works. 3.5 Provide advice on payments to contractor(s). 3.6 Control the project cost. 3.7 Issue Certificate of Practical Completion of the work. 3.8 Monitor the contractor(s) on defects rectification. 3.9 Conduct final inspection upon expiry of Defects Liability Period and prepare Final Accounts. 3.10 Handle contractual disputes. *(Where there is a condition survey report, add this statement:) Enclosed herewith a copy of condition survey report prepared by ______[Name of Consultant] for your reference.

3. Professional Fee

Separate fee should be quoted for each stage of works as follows: Stage I: Preliminary Design Stage II: Detailed Design & Tendering Stage III: Contract Administration & Construction Management You may propose the terms of payment in each stage of works.

4. Right of the Employer

The Employer has the liberty to engage partial services for any one of the above stages.

Annex 6 (d) — page 2 6 (d)

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:07 PM Sample

5. Validity of the Proposal

The proposal shall be valid for at least 6 months from the date of the fee proposal.

6. Termination of Services

The professional service may be terminated by either party upon a 14-day prior written notice to the last known address of the other party. The consultant shall be remunerated based upon the services rendered up to the date of termination of the appointment.

7. Probity and Anti-Collusion Clauses

Offering Gratuities (A) The tenderer shall not, and shall procure that his employees and agents shall not, offer, solicit or accept an advantage as defined in the Prevention of Bribery Ordinance (Cap 201) in connection with the tendering and execution of this consultancy agreement. (B) Failure to so procure or any act of offering, soliciting or accepting advantage referred to in (A) above committed by the tenderer or by an employee, agent or sub-consultant of the tenderer shall, without affecting the tenderer's liability for such failure and act, result in his tender being invalidated. Anti-collusion (C) The tenderer shall not communicate to any person other than the Employer the amount of any tender, adjust the amount of any tender by arrangement with any other person, make any arrangement with any other person about whether or not he or that other person should or should not tender or otherwise collude with any other person in any manner whatsoever in the tendering process until the tenderer is notified by the Employer of the outcome of the tender exercise. Any breach of or non-compliance with this sub-clause by the tenderer shall, without affecting the tenderer's liability for such breach or non-compliance, invalidate his tender. (D) Sub-clause (C) of this Clause shall have no application to the tenderer's communications in strict confidence with his own insurers or brokers to obtain an insurance quotation for computation of tender price and communications in strict confidence with his sub-consultants to solicit their assistance in preparation of tender submission. (E) The tenderer shall submit to the Employer a duly signed letter in the form set out in Appendix [see Annex 6 (d) — Appendix 1]. The letter shall be signed by a person authorised to sign the agreement on the tenderer's behalf.

8. Insurance

The consultant shall, on written request by the Employer, produce evidence by way of certificate of insurance, receipt of premium or otherwise as appropriate that the professional indemnity and public liability insurance have been effected and remain in effect.

6 (d) Annex 6 (d)— page 3

ICAC_Eng_Annex.indd 3 2008/4/9 8:42:07 PM Sample

9. Delivery

Please submit your fee proposal together with your job reference in a sealed envelope marked conspicuously "Confidential – Tender Document for Fee Proposal for Repair and Renovation Work at ______[Name of Building/Estate]" and send to the tender box at ______[Address for Return of Tender] on or before ______[Time and Date for Return of Tender]. LATE SUBMISSION WILL NOT BE CONSIDERED.

*Please return the Condition Survey Report as mentioned above with your fee proposal submission.

(* delete as appropriate)

Should you require a site visit, please contact ______[Name] at ______[Telephone Number]. For any queries, please contact ______[Name] at ______[Telephone Number].

Yours faithfully, For and on behalf of ______[Name of the Owners' Corporation]

Annex 6 (d) — page 4 6 (d)

ICAC_Eng_Annex.indd 4 2008/4/9 8:42:07 PM Sample

Annex 6 (d) Appendix 1 — Confirmation Letter to be Submitted by Tenderers together with the Fee Proposal

To: [Owners' Corporation]

Dear Sir/Madam,

Confirmation Letter for Fee Proposal for Repair and Renovation Works at [Name and Address of Building / Estate]

[I/We]1, [(Name of the tenderer) of (Address of the tenderer)]2 refer to [my/our]1 fee proposal for the above works.

[I/We]1 confirm that as at the time of submission of this letter and other than the Excepted Communications referred to in the last paragraph of this letter [I/we]1 had not communicated to any person other than the Employer the amount of any tender, adjusted the amount of any tender by arrangement with any other person, made any arrangement with any other person about whether or not [I/We]1 or that other person should tender or otherwise colluded with any other person in any manner whatsoever and undertake that at any time thereafter in the tendering process for the above Agreement until the tenderer is notified by the Employer of the outcome of the tender exercise and other than the Excepted Communications referred to in the last paragraph of this letter [I/we]1 will not communicate to any person other than the Employer the amount of any tender, adjust the amount of any tender by arrangement with any other person, make any arrangement with any other person about whether or not [I/We]1 or that other person should tender or otherwise collude with any other person in any manner whatsoever.

In this letter, the expression "Excepted Communications" means [my/our]1 communications in strict confidence with [my/our]1 own insurers or brokers to obtain an insurance quotation for computation of tender price and communications in strict confidence with [my/our] 1 sub-consultants to solicit their assistance in preparation of tender submission.

(Signed for and on behalf of the tenderer)3

1.Delete as appropriate 2.Where the tenderer comprises two or more persons or companies acting in partnership, joint venture or otherwise, this part in square brackets should be expanded to include the respective names and addresses of such persons or as the case may be companies. 3.Where the tenderer comprises two or more persons or companies acting in partnership, joint venture or otherwise, all such persons or as the case may be companies must sign. The signatory for each of such persons or companies shall be a person authorized to sign the contract on behalf of that person or as the case may be company.

6 (d) Annex 6 (d) — page 5

ICAC_Eng_Annex.indd 5 2008/4/9 8:42:07 PM Sample Annex 6 (e) Record of Invitation for Tender

Invitation letters calling for tenders for ______have been sent to

the following companies :

Name of Company Address

Date :

Stamp and Signature :

Name : Chairman / Member Management Committee of the Owners' Corporation

Annex 6 (e) — page 1 6 (e)

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:07 PM Sample Annex 6 (f) Tender Opening Record

Tenders for ______have been invited and those received

before the submission deadline were opened on ______[date and time].

A total of ______tenders in respect of the above-mentioned project were received, names

of which and their respective tender prices are listed below :

Name of Tenderer Tender Price

Signature of Witness

Name Post Signature

Date :

6 (f) Annex 6 (f) — page 1

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:07 PM Sample Annex 6 (g) Tender Evaluation Form

______[Name of Building/Estate] Repair and Renovation Works Tender Evaluation

Evaluation Criteria Lowest bid 2nd lowest bid 3rd lowest bid Name of Consultant (1) Limited company

(2) No. of staff with professional qualification

(3) Financial status

(4) Job reference of past three years: No. of projects - Being a consultant for repair works projects (5) Quality Assurance Certification (e.g. ISO 9001)

(6) Proof of Professional Indemnity Insurance

(7) Registered with BD as an AP/RSE/RGE

(8) Tender price for: (a) Phase 1 $ $ $ (b) Phase 2 $ $ $ (c) Phase 3 $ $ $ (d) Tender Sum $ $ $ (9) Validity Period of Tender upon return of No. of months: No. of months: No. of months: tender documents ______

(10) Scope of Services: (a) Standard services Yes / No Yes / No Yes / No (b) Additional services Yes / No Yes / No Yes / No (11) Company Code of Conduct Yes / No Yes / No Yes / No

(12) Others

Notes: Where necessary, requests for outstanding information from tenderers can be made.

Date :

Signature:

Name of Assessors :

Annex 6 (g) — page 1 6 (g)

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:07 PM Sample Annex 6 (h) Notice to Tenderers and Owners/Occupants

(i) Notice to Owners/Occupants

Date :

To : Owners / Occupants

Resolution on the Selection of Consultant/Contractor*

I refer to the tendering exercise held recently for ______at our

building. After careful consideration, it was resolved that the contract would be awarded to [Name of

the Company], reason(s) being :

Stamp and Signature :

Name : Chairman Management Committee of the Owners' Corporation

(*Delete as appropriate)

6 (h) Annex 6 (h) — page 1

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:07 PM Sample

(ii) Notice to Successful Tenderer

Date :

To : Tenderer

Tendering Result (For successful tenderer)

I refer to the tender submitted by your company for ______at our

building. I am pleased to inform you that the Owners' Corporation has, after prudent consideration

of your tender, decided to award the contract to your company. Please contact [Name / post] of the

Owners' Corporation at ______to discuss the subsequent arrangements.

Stamp and Signature :

Name : Chairman Management Committee of the Owners' Corporation

Annex 6 (h) — page 2 6 (h)

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:07 PM Sample

(iii) Notice to Unsuccessful Tenderers

Date :

To : Tenderer

Tendering Result (For unsuccessful tenderer)

With reference to the tender submitted by your company for ______

at our building, I regret to inform you that your company has not been selected for the project.

The selected company is ______.

If you have any queries, please contact [Name / post] of the Owners' Corporation at ______

Thank you for taking part in the tendering exercise.

Stamp and Signature :

Name : Chairman Management Committee of the Owners' Corporation

6 (h) Annex 6 (h) — page 3

ICAC_Eng_Annex.indd 3 2008/4/9 8:42:07 PM Sample Annex 6 (i) Ethical Commitment Clauses for Inclusion in the Consultancy Agreements

Ethical Commitment

Confidentiality (A) Except as necessary for the performance of the Services the Consultants shall not (except with the prior written consent or as instructed by the Employer) disclose the terms and conditions of this Agreement or any report, document, specification, drawing, plan, software, data or other particulars furnished by or on behalf of the Employer in connection therewith, or any such or similar information generated or produced by the Consultants pursuant to this Agreement, to any person other than a person employed or engaged by the Consultants in carrying out this Assignment, an agent of the Consultants, any approved sub-consultant or the Consultants' accountants, insurers and legal advisers. (B) Any disclosure to any person, agent, sub-consultant, accountant, insurer, legal adviser permitted under sub-clause (A) of this clause shall be in strict confidence and shall be on a "need to know" basis and extend only so far as may be necessary for the purposes of this Agreement. (C) The Consultants shall take all necessary measures (including by way of a code of conduct or contractual provisions where appropriate) to ensure that their directors, employees, agents, sub-consultants, accountants, insurers and legal advisers as mentioned in sub-clause (A) are aware of and shall comply with the confidentiality and non-disclosure provisions contained in this Agreement. If required by the Employer, the Consultants undertake to procure for and on behalf of the Employer a confidentiality agreement in a form to be prescribed by the Employer from any director, employee, agent, sub-consultant, accountant, insurer and legal adviser to whom any confidential information is to be disclosed. (D) The Consultants shall not without the prior written consent of the Employer publish, either alone or in conjunction with any other person, in any newspaper, magazine, periodical or through any electronic medium, any article, photograph or illustration relating to this Agreement. (E) The Consultants shall indemnify and keep indemnified the Employer against all loss, liabilities, damages, costs, legal costs, professional and other expenses of any nature whatsoever the Employer may suffer, sustain or incur, whether direct or consequential arising out of or in connection with any breach by the Consultants or their directors, employees, agents, sub- consultants, accountants, insurers or legal advisers of this clause. (F) The provision of this clause shall survive the termination of this Agreement (however occasioned) and shall continue in full force and effect notwithstanding such termination.

Prevention of Bribery (G) The Consultants shall prohibit their directors, employees, agents and sub-consultants who are involved in this Agreement from offering, soliciting or accepting any advantage as defined in the Prevention of Bribery Ordinance, (Cap 201). The Consultants shall also caution their directors, employees, agents and sub-consultants against soliciting or accepting any excessive hospitality, entertainment or inducements which would impair their impartiality in relation to the Assignment. The Consultants shall take all necessary measures (including by way of a code of conduct or contractual provisions where appropriate) to ensure that their directors, employees, agents and sub- consultants are aware of the aforesaid prohibition and will not solicit or accept any advantages, excessive hospitality etc when conducting business in connection with this Agreement.

Annex 6 (i) — page 1 6 (i)

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Declaration of Interest (H) The Consultants shall require their employees, agents and sub-consultants who are involved in this Agreement to declare in writing to the Consultants any conflict or potential conflict between their personal/financial interests and their duties in connection with this Agreement. In the event that such conflict or potential conflict is disclosed in a declaration, the Consultants shall forthwith take such reasonable measures as are necessary to mitigate as far as possible or remove the conflict or potential conflict so disclosed. (I) The Consultants shall prohibit their employees who are involved in this Agreement from engaging in any work or employment other than in the performance of this Agreement, with or without remuneration, which could create or potentially give rise to a conflict between their personal/ financial interests and their duties in connection with this Agreement. The Consultants shall require their agents and sub-consultants to impose similar restriction on their employees by way of a contractual provision. (J) The Consultants shall take all necessary measures (including by way of a code of conduct or contractual provisions where appropriate) to ensure that their employees, agents and sub- consultants who are involved in this Agreement are aware of the provisions under the aforesaid sub-clauses (H) and (I).

Declaration of Ethical Commitment (K) The Consultants shall submit a signed declaration in a form (see Appendix) prescribed or approved by the Employer to confirm compliance with the provisions in aforesaid sub-clauses (A), (B), (C), (D), (E), (F), (G), (H), (I) and (J) on confidentiality, prevention of bribery and declaration of interest. If the Consultants fail to submit the declaration as required, the Employer shall be entitled to withhold payment until such declaration is submitted and the Consultants shall not be entitled to interest in that period. To demonstrate compliance with the aforesaid sub-clauses (A), (B), (C), (D), (E), (F), (G), (H), (I) and (J) on confidentiality, prevention of bribery and declaration of interest, the consultant and their sub-consultants employed for the performance of duties under this Agreement are required to deposit with the Employer a code of conduct issued to their staff.

6 (i) Annex 6 (i) — page 2

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Annex 6 (i) Appendix

Declaration Form by Consultants on their compliance with the Ethical Commitments Requirements

To: Owners' Corporation's Representative

Agreement Title:

In accordance with the Ethical Commitment clauses in the Consultancy Agreement :

(1) We confirm that we have complied with the following provisions and have ensured that our directors, employees, agents and sub-consultants are aware of the following provisions: (a) Prohibiting our directors, employees, agents and sub-consultants who are involved in this Agreement from offering, soliciting or accepting any advantage as defined in section 2 of the Prevention of Bribery Ordinance, (Cap 201) when conducting business in connection with this Agreement; (b) Requiring our employees, agents and sub-consultants who are involved in this Agreement to declare in writing to us any conflict or potential conflict between their personal/financial interests and their duties in connection with this Agreement. In the event that a conflict or potential conflict is disclosed, we will take such reasonable measures as are necessary to mitigate as far as possible or remove the conflict or potential conflict so disclosed; (c) Prohibiting our employees who are involved in this Agreement from engaging in any work or employment other than in the performance of this Agreement, with or without remuneration, which could create or potentially give rise to a conflict between their personal/ financial interests and their duties in connection with this Agreement and requiring our sub- consultants to do the same; (d) Taking all measures as necessary to protect any confidential/privileged information or data entrusted to us by or on behalf of the Employer from being divulged to a third party other than those allowed in this Agreement.

(2) We further confirm that we have ensured that our accountants, insurers and legal advisers are aware of the provisions requiring us taking all measures as necessary to protect any confidential/ privileged information or data entrusted to us by or on behalf of the Employer from being divulged to a third party other than those allowed in this Agreement.

(Name of the Consultant)

(Name of the Signatory)

(Position of the Signatory)

(Date)

Annex 6 (i) — page 3 6 (i)

ICAC_Eng_Annex.indd 3 2008/4/9 8:42:07 PM Annex 7 Sample Documents — Selection of Contractors

(a) Selection of Contractor - Advertisement for Pre-qualification

(b) Pre-qualification Evaluation Form for use by OCs

(d) Tender Evaluation Form for use by OCs

(e) Ethical Commitment Clauses for inclusion in the Contract

7 Annex 7 — page 1

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:07 PM Sample Annex 7 (a) Selection of Contractor — Advertisement for Pre-qualification

Tender Notice – Maintenance Project

Tenders are invited for a repair and maintenance project at [Name and Address of Building / Estate]. Interested companies should submit the following information to the Owners’ Corporation on or before ______[Date & time] at ______[Address] for pre- qualification.

(1) Copies of Business Registration Certificate and certificates of Registered General Building Contractor / Registered Fire Service Installation Contractor / Licensed Plumbers*;

(2) Background and organization of company, including the year of formation, number of staff with professional / technical qualification and CV of key staff;

(3) Experience in maintenance projects of a similar nature and with a contract sum above HK$______in the past three years, including on-going and completed projects (provide details of the locations and value of the project);

(4) Audited accounts for the past three years and statement issued by lawyer of no involvement in arbitration or litigation (issued within the last 6 months);

(5) Reference letters issued by past employers, particularly other OCs, and

(6) Company Code of Conduct (if any). (* Delete as appropriate)

Contact for enquiries : ______[Name & telephone number of the person authorized by the OC]

Owner’s Corporation of [Name and Address of Building / Estate]______

Annex 7 (a) — page 1 7 (a)

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:07 PM Sample Annex 7 (b) Pre-qualification Evaluation Form for use by OCs

(Name of Building/Estate) Repair and Renovation Works Pre-qualification/Preliminary Assessment of Contractors

Assessment Criteria A B C D E F G H Name of Contractor (a) Limited company Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No

(b) Year of Formation in Hong Kong (c) CV of key staff including site Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No agent and Board of Directors

(d) Staffing: - No. of staff with professional / technical qualification; no. of Safety Officer (e) Organisation Chart of Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Contractor's Site Staff (f) Financial information Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No (e.g. Documentary proof from banks) g) Experience in building No. of Projects maintenance works projects - No. of completed projects for past three years (with name and location of the buildings) - No. of on-going projects (with name and location of the buildings) - appointment letters issued Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No by the employers (i.e. the OC) (h) Reference Documents: - Licenced Plumber* Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No - Registered Electrical Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Contractors* - Registered Fire Service Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Installation Contractors (Classes I & II)* - Certification by a Legal Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Advisor – any on-going / previous lawsuits* - Business Registration Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Certificate (Date of registration)* - Relevant government Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No registration (including RGBC)* (i) Company Code of Conduct Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No Yes ( ) / No

(* Delete as approprate)

Date :

Signature:

Name of Assessors :

7 (b) Annex 7 (b) — page 1

FileICAC_Eng_Annex.indd Name: LACIE: Shared_Jobs:ICAC:0712009 1 ICAC-Building Maintenance Toolkit:Layout:ICAC_Eng_Annex.indd Modify Date: 20:502008/4/9 09/04/08 8:42:07 PM 2008 © AOMM Creative Ltd Sample Annex 7 (c) Probity and Anti-Collusion Clauses in the Tender Document

Offering Gratuities (1) The tenderer shall not, and shall procure that his employees, agents and sub-contractors shall not, offer, solicit or accept an advantage as defined in the Prevention of Bribery Ordinance, (Cap 201) in connection with the tendering and execution of this contract. (2) Failure to so procure or any act of offering, soliciting or accepting advantage referred to in (1) above committed by the tenderer or by an employee, agent or sub-contractor of the tenderer shall, without affecting the tenderer's liability for such failure and act, result in his tender being invalidated.

Anti-collusion (1) The tenderer shall not communicate to any person other than the [name of the Owners' Corporation] (hereafter referred to as the Employer) the amount of any tender, adjust the amount of any tender by arrangement with any other person, make any arrangement with any other person about whether or not he or that other person should or should not tender or otherwise collude with any other person in any manner whatsoever in the tendering process until the tenderer is notified by the Employer of the outcome of the tender exercise. Any breach of or non-compliance with this sub-clause by the tenderer shall, without affecting the tenderer's liability for such breach or non- compliance, invalidate his tender. (2) Sub-clause (1) of this Clause shall have no application to the tenderer's communications in strict confidence with his own insurers or brokers to obtain an insurance quotation for computation of tender price and communications in strict confidence with his consultants / sub-contractors to solicit their assistance in preparation of tender submission. (3) The tenderer shall submit to the Employer a duly signed letter in the form set out in Appendix [see Annex 7(c) — Appendix 1]. The letter shall be signed by a person authorized to sign the contract on the tenderer's behalf.

Annex 7 (c) — page 1 7 (c)

File Name: LACIE: Shared_Jobs:ICAC:0712009 ICAC-Building Maintenance Toolkit:Layout:ICAC_Eng_Annex.indd Modify Date: 20:50 09/04/08 ICAC_Eng_Annex.indd 1 2008 © AOMM2008/4/9 Creative 8:42:07 PM Ltd Sample

Annex 7 (c) Appendix 1 — Confirmation Letter

To: [OC]

Dear Sir/Madam,

Confirmation Letter for Contract No. [ ]

[I/We]1 , [(Name of the tenderer) of (Address of the tenderer)]2 refer to [my/our]1 tender for the above Contract.

[I/We]1 confirm that as at the time of submission of this letter and other than the Excepted Communications referred to in the last paragraph of this letter [I/we]1 had not communicated to any person other than the [Name of the Owners’ Corporation] (hereafter referred to as the Employer) the amount of any tender, adjusted the amount of any tender by arrangement with any other person, made any arrangement with any other person about whether or not [I/we]1 or that other person should tender or otherwise colluded with any other person in any manner whatsoever and undertake that at any time thereafter in the tendering process for the above Contract until the tenderer is notified by the Employer of the outcome of the tender exercise and other than the Excepted Communications referred to in the last paragraph of this letter [I/we]1 will not communicate to any person other than the Employer the amount of any tender, adjust the amount of any tender by arrangement with any other person, make any arrangement with any other person about whether or not [I/We]1 or that other person should tender or otherwise collude with any other person in any manner whatsoever.

In this letter, the expression “Excepted Communications” means [my/our]1 communications in strict confidence with [my/our]1 own insurers or brokers to obtain an insurance quotation for computation of tender price and communications in strict confidence with [my/our]1 consultants or sub-contractors to solicit their assistance in preparation of tender submission.

(Signed for and on behalf of the tenderer)3

1. Delete as appropriate 2. Where the tenderer comprises two or more persons or companies acting in partnership, joint venture or otherwise, this part in square brackets should be expanded to include the respective names and addresses of such persons or as the case may be companies. 3. Where the tenderer comprises two or more persons or companies acting in partnership, joint venture or otherwise, all such persons or as the case may be companies must sign. The signatory for each of such persons or companies shall be a person authorized to sign the contract on behalf of that person or as the case may be company.

7 (c) Annex 7 (c) — page 2

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:08 PM Sample Annex 7 (d) Tender Evaluation Form for use by OCs

(Name of Building/Estate) Repair and Renovation Work Tender Evaluation

Evaluation Criteria Lowest bid 2nd lowest bid 3rd lowest bid Name of Contractor

(1) Limited company

(2) Curriculum Vitae of key staff including site agent and Board of Directors

(3) No. of staff with professional / technical qualification

(4) No. of Safety Officer

(5) Organization Chart of contractor's site staff

(6) Experience in building maintenance works projects No .of projects for past three years: - Completed projects - On-going projects (7) Financial information (e.g. Documentary proof from banks) (8) Certification by a Legal Advisor – any on-going / previous lawsuits

(9) Licensed Plumber

(10) Registered Electrical Contractor

(11) Registered Fire Service Installation Contractor (Classes I & II) (12) Business Registration Certificate

(13) Relevant government registration (including RGBC)

(14) Tender Sum $ $ $

(15) Validity period of tender upon return of tender No. of months: No. of months: No. of months: documents ______

(16) Others

Notes: Requests for outstanding information from tenderers can be made as necessary.

Date :

Signature:

Name of Assessors :

Annex 7 (d) — page 1 7 (d)

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:08 PM Sample Annex 7 (e) Ethical Commitment Clauses for inclusion in the Contract

Ethical Commitment

Information not to be Divulged (A) The Contractor shall not use or divulge, except for the purpose of the Contract, any information provided by [name of the Owners' Corporation] (hereafter referred to as the Employer) in the Contract or in any subsequent correspondence or documentation. Any disclosure to any person or agent or sub-contractor for the purpose of the Contract shall be in strict confidence and shall be on a “need to know” basis and extend only so far as may be necessary for the purpose of this Contract. The Contractor shall take all necessary measures (including by way of a code of conduct or contractual provisions where appropriate) to ensure that information is not divulged for purposes other than that of this Contract by such person, agent or sub-contractor. The Contractor shall indemnify and keep indemnified the Employer against all loss, liabilities, damages, costs, legal costs, professional and other expenses of any nature whatsoever the Employer may suffer, sustain or incur, whether direct or consequential, arising out of or in connection with any breach of the aforesaid non-disclosure provision by the Contractor or his employees, agents or sub-contractors.

Prevention of Bribery (B) The Contractor shall prohibit his employees, agents, and sub-contractors who are involved in this Contract from offering, soliciting or accepting any advantage as defined in the Prevention of Bribery Ordinance, (Cap 201) when conducting business in connection with this Contract.

Declaration of Interest (C) The Contractor shall require his employees, agents and sub-contractors who are involved in this Contract to declare in writing to the Contractor any conflict or potential conflict between their personal/financial interests and their duties in connection with this Contract. In the event that such conflict or potential conflict is disclosed in a declaration, the Contractor shall forthwith take such reasonable measures as are necessary to mitigate as far as possible or remove the conflict or potential conflict so disclosed. (D) The Contractor shall prohibit his employees who are involved in this Contract from engaging in any work or employment other than in the performance of this Contract, with or without remuneration, which could create or potentially give rise to a conflict between their personal/financial interests and their duties in connection with this Contract. The Contractor shall also require their sub- contractors and agents to impose similar restriction on their employees by way of a contractual provision. (E) The Contractor shall take all necessary measures (including by way of a code of conduct or contractual provisions where appropriate) to ensure that his employees, agents and sub- contractors are aware of the prohibitions in this clause.

Contractor's Declaration (F) The Contractor shall also submit a signed declaration in a form (Appendix) prescribed or approved by the Employer to confirm compliance with the provisions on ethical commitment as stated in the aforesaid sub-clauses (A), (B), (C), (D) and (E). If the Contractor fails to submit the declaration as required, the Employer shall be entitled to withhold payment until such declaration is submitted and the Contractor shall not be entitled to interest. To demonstrate compliance with the aforesaid sub-clauses (A), (B), (C), (D) and (E) on confidentiality, prevention of bribery, and declaration of interest, the contractor and their sub-contractors employed for the performance of duties under this Contract are required to deposit with the Employer a code of conduct issued to their staff.

7 (e) Annex 7 (e) — page 1

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Annex 7 (e) Appendix

Declaration Form by Contractor on their Compliance with the Ethical Commitments Requirements

To: [Owners' Corporation]

Contract Title:

In accordance with the Ethical Commitment clauses of the Contract, we confirm that we have complied with the following provisions and have ensured that our directors, employees, sub- contractors, agents are aware of the following provisions:

(a) Prohibiting our directors, employees, agents and sub-contractors who are involved in this Contract from offering, soliciting or accepting any advantage as defined in section 2 of the Prevention of Bribery Ordinance, (Cap 201) when conducting business in connection with this Contract;

(b) Requiring our directors, employees, agents and sub-contractors who are involved in this Contract to declare in writing to us any conflict or potential conflict between their personal/financial interests and their duties in connection with this Contract. In the event that a conflict or potential conflict is disclosed, we will take such reasonable measures as are necessary to mitigate as far as possible or remove the conflict or potential conflict so disclosed;

(c) Prohibiting our directors and employees who are involved in this Contract from engaging in any work or employment other than in the performance of this Contract, with or without remuneration, which could create or potentially give rise to a conflict between their personal/financial interests and their duties in connection with this Contract and requiring our sub-contractors to do the same;

(d) Taking all measures as necessary to protect any confidential/privileged information or data entrusted to us by or on behalf of the Employer from being divulged to a third party other than those allowed in this Contract.

(Name of the Consultant)

(Name of the Signatory)

(Position of the Signatory)

(Date)

Annex 7 (e) — page 2 7 (e)

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:08 PM Annex 8 Sample Documents — Small Scale Maintenance Works

(a) Letter of Invitation for Tender (without Project Consultant)

(b) Letter of Award (without Project Consultant)

8 Annex 8 — page 1

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:08 PM Sample Annex 8 (a) Letter of Invitation for Tender (without Project Consultant)

Date:

To: [Contractor’s name and address]

Tender Invitation - Maintenance Project

You are invited to submit a tender for the maintenance works for our building at ______[Name and address of building]. The details of the works requirements are as shown in the attached Form of Tender [, Drawings, Specifications]1 and Schedule of Works.

If your company is interested in undertaking the above maintenance works, please submit the completed Form of Tender [, your proposed drawings, specifications]2 and Schedule of Rates in a sealed envelope to the Tender Box at ______[Address] on or before ______[Time & Date]. Late submission will not be accepted.

Your tender should also include a photocopy of your company code of conduct, Business Registration Certificate, certificate(s) of Registered General Building Contractor/ Registered Fire Service Installation Contractor/ Licensed Plumber3. The details of similar projects undertaken including position, contact details of referees and information of your company’s financial condition should also be submitted.

Should you require a site visit, please contact ______[Name] at ______[Telephone Number]. For any queries, please contact ______[Name] at ______[Telephone Number].

Stamp and Signature: Name: Chairman Management Committee of the Owners’ Corporation

Encl. Form of Tender4 [,Specifications, Drawings]1 and Schedule of Works Notes on using the sample letter of invitation for tender 1. To be deleted if no specifications and drawings are provided to the tenderer. 2. To be deleted by the OC before invitation of tender if the tenderer is not invited to submit drawings and specifications. 3. Delete as appropriate. 4. Please see the Appendix to Annex 8(a) for a sample Form of Tender.

Annex 8 (a) — page 1 8 (a)

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Annex 8(a) Appendix — Sample Form of Tender

Form of Tender

for ______[Description of Works]1 (the Works) at ______[Name and Address of Building]1 (the Site)

The details of the Works are given in the following documents a) Schedule of Works numbered 2 b) Specifications numbered 3 c) Drawings numbered 3

NOTES: (1) If a tender is being made by a partnership or an unincorporated body, the names and addresses of all partners shall be given in the spaces provided below. (2) In all cases, the tenderer must give the number and date of the Business Registration Certificate here:

Number______4 Date______4

To: The Owners’ Corporation of ______[name and address of building]1 1) Having inspected the Site and examined the conditions of contract as contained in the Letter of Awards5 [, Specifications, Drawings]6 and the Schedule of Works for the execution of the above Works, I/We offer to execute, complete and maintain the whole of the Works described within these Tender Documents in conformity with the [Specifications, Drawings,]6 Conditions of Contract and Schedule of Works for the sum of Hong Kong Dollars ______4 only (HK$______)4.

2) I/We undertake to complete the Works within ______days1 including Sundays and public holidays after the Date of Commencement.

3) I/We agree to abide by this Tender for a period of ______days4 from the date of submission thereof and that it may be accepted at any time before the expiry of that period.

4) I/We agree that unless and until a formal Agreement is prepared and executed, this Tender together with the written acceptance thereof by the Employer subject to the provision of clause 3 hereof shall constitute a binding contract between us.

8 (a) Annex 8 (a) — page 2

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5) The Contract Conditions in the Letter of Award shall be filled in as follows: - Clauses 5.2.1 Stage payment ______1 HK$______4 ______1 HK$______4 ______1 HK$______4 5.2.3 Minimum payment for each invoice 90% /______%7 5.2.4 Defect liability period 3 months /______months8 5.3 Minimum amount of third party liability insurance ______1

6) I/We understand that the Employer is not bound to accept the lowest or any tender he may receive. 7) I/We agree to abide by the probity and anti-collusion clauses attached at Appendix A9. Name and Signature 4 in the capacity of 4 duly authorized to sign tender for and on behalf of 4 Registered Address of Firm 4 Date 4 Witness (signature) 4 Name 4 Address 4 Names of Partners Addresses of Partners

______4 ______4

______4 ______4 Notes for tenderer: 1. If a tender is being made by a partnership or an unincorporated body, the names and addresses of all partners shall be give in the spaces provided above. 2. In the case of a limited Company, insert the name of the Company. 3. The tenderer may collect a copy of the Letter of Award5 showing the terms and conditions from the owners’ corporation.

Annex 8 (a) — page 3 8 (a)

ICAC_Eng_Annex.indd 3 2008/4/9 8:42:08 PM Sample

Notes on using the sample form of tender. 1. To be inserted by the OC before invitation of tender. 2. The OC should list the items of works to be carried out by the contractor in the Schedule of Works. The OC may ask the tenderer to propose working drawings, list of materials and their specifications where appropriate, which then form part of the contract. 3. The OC inserts the number of the drawings and specifications if these are provided to the tenderers by the OC. Otherwise, the OC deletes these before invitation of tender. 4. To be inserted by the tenderers. 5. Caution : The sample Letter of Award in Annex 8(b) is only for simple and small scale works, aiming to provide a general reference to the OCs, and it does not purport to cater for all possible situations and types of works. OCs may also consider using a Form of Contract, and if so, they may make reference to the sample contract documents published by the professional bodies, e.g. the “Standard Form of Contract For Decoration, Repair and Maintenance Works” issued by the Hong Kong Institute of Surveyors. Where a Form of Contract is adopted, the OC has to make suitable amendments on this sample document (i.e. the Form of Tender) accordingly. 6. To be deleted by OC if no specifications and drawings are provided to the tenderers. 7. If a different payment percentage is required, OC deletes “90%” and inserts the desired percentage before invitation of tender. 8. If a different defect liability period is required, OC deletes “3 months” and inserts the desired period. 9. Attaches the sample probity and anti-collusion clauses in the Form of Tender (See Annex 7(c)).

8 (a) Annex 8 (a) — page 4

ICAC_Eng_Annex.indd 4 2008/4/9 8:42:08 PM Sample Annex 8(b) Letter of Award (Without Project Consultant)

Date:

[ABC Construction Co. Ltd.] [Address]

Dear Sirs,

Re : [TITLE OF CONTRACT] — LETTER OF AWARD

We thank you for your Tender submitted on ______[Date] and the subsequent discussions in connection with the above contract.

I have been duly authorized by the [Name of the Owners’ Corporation] (hereafter referred to as the Employer), to award to you the contract for the captioned works.

The award is subject to the following terms and conditions:-

1. Work Details The details of the Works are described in the following documents : (see Drafting Note 1)

Drafting Note 1: OCs should include all the Schedule of Works, Drawings and Specifications issued to or submitted by the successful tenderer.

2. Contract Sum The price for the Works shall be in the amount of HK$ ______(Hong Kong Dollars ______Only). The price is deemed to include the cost of all works necessary for the timely and satisfactory completion of the Works in its entirely.

3. Commencement and Completion Dates Possession of the Site for commencement of the Works shall be ______[Date], which will also be the Commencement Date of the Contract. (see Drafting Note 2)

Drafting Note 2: The date, usually 2 weeks to 1 month from the date of award, is agreed between the OC and the contractor.

Annex 8 (b) — page 1 8 (b)

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:08 PM Sample

The whole of the Works shall be completed within ______calendar days from the Commencement Date, that is to say, the Completion Date shall be ______[Date]. (see Drafting Note 3)

Drafting Note 3: The dates should be agreed between the OC and the contractor.

4. Contract Documents The following letters and documents shall constitute integral parts of the contract hereby awarded : 4.1 4.2 (See Drafting Note 4) 4.3 4.4 The terms and conditions stated in this letter shall prevail in the event of any inconsistency between the terms and conditions stated in the earlier letters and documents identified above.

Drafting Note 4: The list of letters and documents that constitute integral parts of the contract may include the Form of Tender, drawings, specifications, relevant correspondence and agreements reached between the OC and the contractor, etc. at the tender stage.

5. Contract Conditions 5.1 Contractor’s obligations 5.1.1 The Contractor shall organize, carry out and complete the Works diligently and in a good and workmanlike manner, in accordance with the Work Details and the provisions of this Letter of Award. The Contractor shall complete the Works using reasonable skill and care including the selection of any specifications for the materials and goods and workmanship to be used in the Works so far as not stated in the Work Details. 5.1.2 The Contractor shall comply with any and all statutory requirements applicable to the Works including obtaining all approvals and consents and paying all fees and charges including those due to statutory undertakers and utility companies. The Contractor shall also comply with any Deed of Mutual Covenant and Management Agreement in respect of the working hours, control of air, noise, wastewater and waste, delivery of materials and goods, connection to public services, etc.

5.2 Payment 5.2.1 The Employer shall pay the Contractor in accordance with clauses 5.2.3 and 5.2.4 by stage payment (See Drafting Note 5) shown below when each of the following stages of the Works is completed.

Stage Payment ______HK$ ______HK$ ______HK$ ______

8 (b) Annex 8 (b) — page 2

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:08 PM Sample

Drafting Note 5: Describe each work stage and the corresponding amount of payment.

5.2.2 When all of the Works are properly completed or when each stage of the work described in clause 5.2.1 is properly completed, the Contractor shall give the Employer an invoice for the amount due. For the purposes of this clause, the Works or each stage of Works shall be considered as being properly completed only when they are free from obvious defects. 5.2.3 The Employer shall pay ______[a percentage to be decided by the OC, e.g. 90%] of the amount of the invoice within 7 days after receiving the invoice from the Contractor unless a greater sum has already been paid. 5.2.4 The Employer shall pay the remaining portion of the amount of the invoice or invoices not more than 7 days after the Contractor has made good all defects in the Works which may be or become apparent at any time within ______[the number of months for the defect liability period to be determined by the OC, e.g. 3 months] after its completion.

5.3 Injury, damage and insurance 5.3.1 The Contractor shall be liable for, and shall indemnify the Employer against, any expense, liability, loss, claim and damage which may be caused to his employees and his sub-contractor’s employees of all tiers, or to the Premises and its contents, the Works or neighbouring properties. 5.3.2 Without prejudice to his obligation to indemnify the Employer, the Contractor shall take out and maintain, in the joint names of the Employer, himself and his sub-contractors of all tiers, (a) Contractor’s All Risks insurance to cover the full reinstatement value of the Works; (b) Third Party Liability insurance to cover the liability to the third party in respect of bodily injury or death and damage to properties with a minimum amount of HK$______for any one occurrence or series of occurrences arising out of any one event, and (c) Employees’ Compensation insurance in compliance with the Employees Compensation Ordinance to cover claims for bodily injury to or the death of any workers employed in connection with the Works.

6. Ethical Commitment Clauses [Note : same as the sample provisions in Annex 7 (e)] Please signify your acceptance of the terms and conditions of this award by signing and returning the duplicate copy to us immediately. The original of this Letter of Award is for your retention.

Your Tender together with the duly signed copy of this Letter of Award shall constitute a binding contract between you and the Employer.

Please submit the following to us for approval prior to the Commencement Date of the Contract : 1. A works program. 2. Insurance policies and premium receipts for the Works in accordance with the Tender Documents. Annex 8 (b) — page 3 8 (b)

ICAC_Eng_Annex.indd 3 2008/4/9 8:42:08 PM Sample

Yours faithfully,

Signature:______

Name:______

Chairman Management Committee of the Owners’ Corporation

c.c.

acknowledgement

I, ______in the capacity of ______duly authorized to sign for and on behalf of [Contractor's Name] hereby confirm acceptance of the terms and conditions stipulated in this letter.

______Signature & Stamp of Contractor

Date : ______(See Drafting Note 5)

Drafting Note 5 Space the letter such that the “Acknowledgement” portion is an integral part of the last page

Important Note This sample Letter of Award is only for simple and small scale of works, aiming to provide a general reference to the OCs, and it does not purport to cater for all possible situations and types of works. OCs may also consider using a Form of Contract, and if so, they may make reference to the sample contract documents published by the professional bodies, e.g. the “Standard Form of Contract For Decoration, Repair and Maintenance Works” issued by the Hong Kong Institute of Surveyors.

When preparing the Form of Contract / Letter of Award, OCs may wish to consider the need to include the clauses listed in Checklist D (page 21 of the Toolkit) in the document.

8 (b) Annex 8 (b) — page 4

ICAC_Eng_Annex.indd 4 2008/4/9 8:42:08 PM Annex 9 Building Defects & Maintenance Tips

Disclaimer: The following building maintenance hints only offer general information and guidance on maintenance for reference purpose. The building defects list is only for common defects and should not be considered as exhaustive. The maintenance methods provided cannot be regarded as specific solutions suitable for any individual case. It is advised that owners or OCs should seek independent professional advice on details of approach for dealing with individual cases.

Spalling/Defective Concrete

How it looks • Cracking and bulging concrete • Falling off concrete with rusty steel bar exposed • Patterned cracking concrete • Concrete surface with rust and /or water stain

Possible causes • Prolonged water seepage/leakage at concrete • Insufficient concrete cover protection • Overloading of concrete structure • Carbonation of concrete

Tips on maintenance • Saw-cut around loose concrete • Hack off all loose concrete to expose sound concrete surface • Chisel concrete to expose steel bar including its behind • Remove all steel rust and apply primer and bonding agent • Carry out patch repair with suitable repair mortar

Other guidance When area of spalling/defective concrete is very extensive, complete removal of existing concrete and re-casting of new concrete should be more appropriate and cost effective. Professional advice should be sought (e.g. from RSE) including relevant legal requirements as it involves building structure. Spalling concrete, especially at a high level, can pose a threat to pedestrian. It is advised that those loosen parts, once discovered, should be hacked off immediately where possible and the area underneath should be fenced off before remedial works are carried out.

Annex 9 — page 1 9

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:09 PM Debonded Plaster

How it looks • Bulging on plaster/tiles with/without surface crack • Hollow sound is noted when tapping on plaster/tile surface • Falling off/cracked plaster/tiles

Possible causes • Failure of bonding agent between concrete surface and plaster/tile • Poor workmanship • Inappropriate bonding agent used

Tips on maintenance • Saw-cut around loose plaster/tiles • Hack off loose plaster/tiles down to concrete surface • Prepare surface to ensure that it is clean • For tile, apply bonding agent in accordance with manufacturer's specification • Apply plaster and fix tile in accordance with recognized standard and manufacturer's instruction

Other guidance Debonded plaster/tile, especially at a high level on external wall, can pose a threat to pedestrian. It is advised that those debonded plaster/tile, once discovered, should be hacked off where possible and the area underneath should be fenced off before remedial works are carried out.

9 Annex 9 — page 2

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:11 PM Painting Defects (i) Peeling Off

How it looks • Painting detached from wall/other material surface usually like being randomly stripped off

Possible causes • Inappropriate/lack of primer before applying paint • Moisture at wall push the paint-film off the wall • Grease and dirts remain on the base when applying primer

Tips on maintenance • Apply suitable primer according to manufacturer's instruction • Rectify water leakage before applying paint work

(ii) Algae & Fungus on Painting Surface

How it looks • Green, reddish and black colour on external surface signify the different stages of growth at ceiling/wall surface

Possible causes • Algae & fungus growth in suitable environment e.g. nutrients, moisture, sunlight etc.

Tips on maintenance • Washing down all affected areas • Treat surface with anti-algae solution • Washing down to remove any residue and allow to dry • Remove water source & moisture • Apply algistatic high performance water-resistant coating system

Annex 9 — page 3 9

ICAC_Eng_Annex.indd 3 2008/4/9 8:42:12 PM Water Leakage/Seepage - Seepage at Wall / Floor / Roof

How it looks • Damp patches on wall/ceiling surface

Possible causes • Defective concrete (e.g. honeycomb, crack at external wall ) allowing water ingress (e.g. rain water) into premises • Leakage through holes for wall-ties left behind on concrete wall • Leakage through defective expansion joints of building • Defective water proofing membrane at roof/ floor/water tank

Tips on maintenance • Identify the reason and source of leakage • Hack off all plaster to expose defective concrete • Seal all cracks & holes by appropriate repairing chemical grout or hack off all defective concrete and recasting concrete • Repair defective expansion joint • Replacement of defective waterproof membrane or total replacement of those membrane at roof/floor/water tank

9 Annex 9 — page 4

ICAC_Eng_Annex.indd 4 2008/4/9 8:42:13 PM Electrical Installations

How it looks • Wiring, meters and switches installed disorderly • Outdated / dilapidated electrical installations

Possible causes • Vandalism • Unauthorized connection • Lack of proper maintenance and management

Tips on maintenance • Appoint a registered electrical contractor to carry out repair works / upgrading works • Appoint a registered electrical contractor to conduct Periodic Inspection, Testing and Certification for fixed electrical installations, and issue Periodic Test Certificate (WR2) with EMSD's endorsement at least once every 5 years

Annex 9 — page 5 9

ICAC_Eng_Annex.indd 5 2008/4/9 8:42:14 PM Plumbing and Drainage System Defects

How it looks • Damp patches at wall/ceiling • Foul smell and blockage • Rusty pipe • Ruptured/ burst pipe • Yellowish fresh water or sediments in potable water supply system

Possible causes • Drainage/water pipe concealed inside wall/ floor is leaking • Blockage of drainage pipe due to disposal of solid waste into drains or inappropriate pipe sizing • Corroded pipe material causing rusting and ruptured surface • Corrosion inside galvanized iron pipe in potable water system • Missing water trap for floor drain and bath tub • Water-seal dried up in water trap

Tips on maintenance • Carry out appropriate water testing to identify the leakage source • Replacement of defective pipework • Replacement of galvanized iron pipe by corrosion resistant pipe in potable water system • Fresh water tank cleansing at least once every 3 months • Flush water tank cleansing at least once every 6 months • Installation of water trap for floor drain and bath tub • Periodic filling up water trap at floor drain with water

Other guidance It is the legal requirement that a licensed plumber should be engaged to carry out all works related to water supply pipe.

9 Annex 9 — page 6

ICAC_Eng_Annex.indd 6 2008/4/9 8:42:16 PM Window Defects

How it looks • Water leakage through window frames • Deformed window frame/hinge • Loosen hinge/screws • Rusty hinge/screws • Broken glazing

Possible causes • Aged/defective water-proof sealant & gaskets • Defective water-proof grouting between frame and concrete • Deformed window frame • Lack of routine inspections • Lack of rain dripping design at external wall • Vandalism/ mis-use

Tips on maintenance • Carry out periodic checking and greasing to ensure windows function properly and carry out appropriate repair where necessary • Replacement of defective sealant /water proofing grouting / gaskets / screws / hinges / putty • Steel window to be painted regularly to avoid rusting • Replacement of broken glass panel

Other guidance • It is advised that experienced and competent tradesman should be employed to carry out window checking and repair works. • Window defects can pose a threat to pedestrian or other third parties. Those defects, once discovered, should be rectified by a competent tradesman as soon as possible.

Annex 9 — page 7 9

ICAC_Eng_Annex.indd 7 2008/4/9 8:42:17 PM Building Fire Safety

How it looks • Fire door damaged / could not self-close • Missing fire door • Broken glazing of vision panel • Malfunction of / expiry of Certificate of Fire Service Installations and Equipment (extinguisher, fire hydrant and hose reel, fire alarm system, exit sign, sprinkler system, emergency lighting, emergency generator, fireman's lift, etc.)

Possible causes • Vandalism / mis-use • Failure of hinges / door closers of fire doors • Lack of proper routine maintenance

Tips on maintenance • Replace / repair damaged parts of fire door such as glazing of vision panels, handles, door hinges and door closers • Replacement of whole set of fire door (including door frame) with a valid fire certificate • Appoint a registered FSI contractor to carry out annual inspection and respective repair works to fire service installations and equipment, and issue Form FS251 and report to FSD

9 Annex 9 — page 8

ICAC_Eng_Annex.indd 8 2008/4/9 8:42:18 PM Annex 10 Extracts of Prevention of Bribery Ordinance (Cap 201)

Section 9 : Corrupt transactions with agents (1) Any agent who, without lawful authority or reasonable excuse, solicits or accepts any advantage as an inducement to or reward for or otherwise on account of his- (a) doing or forbearing to do, or having done or forborne to do, any act in relation to his principal's affairs or business; or (b) showing or forbearing to show, or having shown or forborne to show, favour or disfavour to any person in relation to his principal's affairs or business, shall be guilty of an offence.

(2) Any person who, without lawful authority or reasonable excuse, offers any advantage to any agent as an inducement to or reward for or otherwise on account of the agent's- (a) doing or forbearing to do, or having done or forborne to do, any act in relation to his principal's affairs or business; or (b) showing or forbearing to show, or having shown or forborne to show, favour or disfavour to any person in relation to his principal's affairs or business, shall be guilty of an offence.

(3) Any agent who, with intent to deceive his principal, uses any receipt, account or other document- (a) in respect of which the principal is interested; and (b) which contains any statement which is false or erroneous or defective in any material particular; and (c) which to his knowledge is intended to mislead the principal, shall be guilty of an offence.

(4) If an agent solicits or accepts an advantage with the permission of his principal, being permission which complies with subsection (5), neither he nor the person who offered the advantage shall be guilty of an offence under subsection (1) or (2).

(5) For the purposes of subsection (4) permission shall- (a) be given before the advantage is offered, solicited or accepted; or (b) in any case where an advantage has been offered or accepted without prior permission, be applied for and given as soon as reasonably possible after such offer or acceptance, and for such permission to be effective for the purposes of subsection (4), the principal shall, before giving such permission, have regard to the circumstances in which it is sought.

Annex 10 — page 1 10

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:18 PM Section 2 : Interpretation "Advantage" means - (a) any gift, loan, fee, reward or commission consisting of money or of any valuable security or of other property or interest in property of any description; (b) any office, employment or contract; (c) any payment, release, discharge or liquidation of any loan, obligation or other liability, whether in whole or in part; (d) any other service, or favour (other than entertainment), including protection from any penalty or disability incurred or apprehended or from any action or proceedings of a disciplinary, civil or criminal nature, whether or not already instituted; (e) the exercise or forbearance from the exercise of any right or any power or duty; and (f) any offer, undertaking or promise, whether conditional or unconditional, of any advantage within the meaning of any of the preceding paragraphs (a), (b), (c), (d) and (e), but does not include an election donation within the meaning of the Elections (Corrupt and Illegal Conduct) Ordinance (Cap 554), particulars of which are included in an election return in accordance with that Ordinance (Amended 33 of 1991 s. 2; 10 of 2000 s. 47).

“Entertainment" means - the provision of food or drink, for consumption on the occasion when it is provided, and of any other entertainment connected with, or provided at the same time as, such provisions.

10 Annex 10 — page 2 10

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:18 PM Sample Annex 11 Sample Code of Conduct for OCs

Introduction (1) The Management Committee (MC), as appointed by the Owners' Corporation (OC), is committed to manage the building with integrity, honesty and fairness. The OC has thus passed a resolution that all its agents including members of the MC and the sub-committees, employees and contractors should observe this Code when conducting business for the OC.

Prevention of Bribery Ordinance (2) Any agent of the OC soliciting or accepting an advantage in connection with his work for the OC without the permission of the OC will commit an offence under Section 9(1) and the offeror of the advantage will commit an offence under Section 9(2) of the Prevention of Bribery Ordinance (Cap 201). The term "advantage", as defined in the Ordinance includes money, gift, loan, fee, reward, employment, contract, service and favour but does not include entertainment which is the provision of food or drink for consumption on the occasion. (3) Any agent of the OC using any false documents, records, accounts or receipts with the intent to deceive the OC will commit an offence under Section 9(3) of the Ordinance.

Acceptance of Advantage (4) The OC has passed a resolution that agents of the OC are not allowed to solicit or accept any advantage when conducting business for the OC, unless with the prior permission of the OC in writing. Examples include MC members not to accept gifts from contractors and caretakers not to solicit tips from owners and tenants.

Entertainment (5) Although entertainment is not an advantage and is an acceptable form of social and business activity, agents of the OC (e.g. MC members, works consultants) should avoid accepting lavish or frequent entertainment from business associates of the OC (e.g. contractors or sub-contractors) so as not to put themselves in a position of obligation or affect their judgement. Excessive gambling and loans should also be avoided.

Conflict of Interest (6) A conflict of interest arises when the private interest of an agent of the OC competes or conflicts with the interest of the OC. Private interest includes both the financial and personal interest of the agent and those of his connections. Connections include his family members, relatives and close personal friends. (7) Agents of the OC should avoid any situation which may lead to an actual or perceived conflict of interest and make a declaration to the MC or the OC when such a situation arises. Examples include an MC member holding the shares of a contractor bidding for the OC's contract, and a caretaker being a relative of his supervisor. Failing to declare or avoid conflict of interest may give rise to criticism of favouritism, abuse of authority or even allegation of corruption.

10 Annex 11 — page 1 11

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:18 PM Sample

Handling Confidential Information and Accounts (8) Agents of the OC should not disclose any confidential information (e.g. tender price, personal data etc.) of the OC without authorization and should take the necessary measures to protect such information from being abused or misused. Agents should ensure the documents, accounts and receipts submitted to the OC are true and accurate.

Compliance with Code of Conduct (9) It is the responsibility of the agents of the OC to understand and comply with this Code. The OC will ensure agents fully understand and observe the requirements and standards laid down in the Code. (10) Agents of the OC who is in breach of the code of conduct may be dismissed or removed from office by resolution of the OC. In case of suspected corruption or other criminal offences, a report will be made to the ICAC or the appropriate authorities. (11) Any enquiries or complaints on possible breaches of this Code should be directed to the chairman or the MC of the OC.

11 Annex 11 — page 2

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:18 PM Sample Annex 12 Sample Form for Declaration of Conflict of Interest

Part A – Declaration of Interest To : *Secretary/Chairman of the Management Committee

Declaration of Interest I understand that if I, my family members and close relatives and personal friends have any direct or indirect interest in any company which has business dealings with the Owners' Corporation, I shall make a declaration to the Management Committee. I would like to declare the following existing/potential* conflict of interest situation arising from the discharge of my duties concerning the operation of the Owners' Corporation or as members of the Management Committee:- a) Persons/companies with whom/which I have official dealings and/or private interests :

b) Brief description of my duties which involved the persons/companies mentioned in item (a) above

Position and Name :

Signature :

Date : (*Delete as appropriate) Part B – Record of Resolution of the Management Committee

Record of Resolution of the Management Committee With respect to the above declaration, the Management Committee passed the following resolution: □ (name of the person making the declaration) should refrain from performing or getting involved in performing the work/duty, as described in Part A, which may give rise to a conflict. □(name of the person making the declaration) may continue to handle the work/duty as described in Part A, provided that there is no change in the information declared above. □Others (please specify)

Secretary: Chairman:

Signature: Signature:

Date of Meeting:

Annex 12 — page 1 12

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:18 PM Annex 13 More Examples on Conflict of Interest

Types of Conflict of Interest Examples Points-to-note • Actual conflict of interest • The Chairman of the • The Management Committee occurs when the agent's Management Committee Chairman, as the agent, may action or decision is under of an OC conceals the benefit from the situation the influence of his private fact that he holds shares while the other stakeholders interest. in the company which has may suffer. This defeats submitted a tender for a the purpose of the tender maintenance contract of the exercise. building and he also tries to influence the OC to accept its bid which is not the best offer. • Perceived conflict of • A renovation contractor • The treasurer, as the agent, interest occurs when other provides decoration service may not have benefited stakeholders perceive that to the treasurer of an OC at from the situation but the the agent's action or decision market rate. perception of such may lead is under the influence of his to allegation of corruption. private interest.

13 Annex 13 — page 1

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:18 PM Annex 14 Examples of Ethical Dilemmas

The following examples aim to help enhance the awareness of OC members and PMC staff on how illegal or unethical situations may arise. The names of characters and companies in the cases are fictitious. OC members and PMC staff are advised to handle such situations with due care.

Scenario 1 Accepting gifts ?

Peter is the treasurer of an OC. The OC has just awarded a building renovation contract to a building contractor “Hung Kei Co.”. Peter has been entrusted by the OC to help supervise the works. The contract is awarded in the New Year and soon after the award, Mr. Lee, the director of Hung Kei, gives an expensive toy as a New Year gift to Peter’s daughter, aiming to build up a harmonious relationship with Peter.

Peter’s response : He rejects the gift politely and tells Mr. Lee that it is against the Code of Conduct issued by the OC if he accepts the gift.

Scenario 2 Be alert and avoid accepting “sweetners”

Johnny is a Property Management Company staff of an estate which is undergoing renovation. David is the senior manager of the contractor appointed for the estate’s renovation project. During the implementation of the project, David sometimes invites Johnny to have dinners together, ordering lavish dishes like sharks’ fin soup and birds’ nest dessert. Johnny and David become close friends. One day, Johnny inspects the progress of the project and notices that the quality of water pipes used is substandard and asks David to replace them. David is reluctant to do that due to tight schedule and cost implications. He asks Johnny to turn a blind eye to the substandard pipes. Knowing that Johnny plans to get marry very soon and is in need of money, David offers to lend money to Johnny in return for conniving at the substandard works.

Johnny’s response : Although Johnny does not want to destroy the harmonious relationship with David, he turns down David’s offer and reports the substandard works to the MC of the estate.

Annex 14 — page 1 14

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:18 PM Scenario 3 Avoid perceived conflict of interest

Jackson is the OC Chairman of a building which has been issued a statutory order by BD, requiring the OC to carry out some maintenance works. The OC carries out a tender exercise for appointing a project consultant. The brother of Jackson’s wife, Andy, is the senior manager of a consultant firm which plans to submit a tender to bid for the project.

Jackson’s response : Jackson declares conflict of interest at the OC meeting and refrains from involving in the tender exercise.

Scenario 4 Leaking confidential tender information

Susan is one of the flat owners of a building which needs renovation. She is entrusted by the OC to assist in conducting the tender exercise for the selection of project consultant. In an alumni reunion before Christmas, Susan meets her old classmate, Ken, who is a director of a consultancy firm. As Susan lacks experience and knowledge in implementing building maintenance projects, she asks Ken for advice. Shortly after their reunion, Ken sends a big hamper to Susan and indicates interest to be the consultant of the renovation project. Later on, the OC invites bids through open tender. Ken asks Susan to provide him with the fees submitted by the other tenderers so that he can submit a tender lower than everyone to ensure that the OC receives the best possible price. He also undertakes to provide the best professional service to the OC.

Susan’s response : Susan refuses to help Ken to obtain the fee proposals submitted by other companies. Subsequently, Ken’s company submits a bid. Susan declares conflict of interest to the OC and refrains from involving in tender assessment.

14 Annex 14 — page 2

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:19 PM Annex 15 Handling of Acceptance of Advantages / Conflict of Interest

Acceptance of Advantage as an agent or employee of the principal (e.g. the OC)?

Yes

Is it an “Advantage” as defined in POBO?

Yes

Is it related to your role as the agent or employee?

Yes

Permission from the principal (e.g. the OC)?

You cannot accept the advantage because that may be in breach of the POBO Yes No

Not in breach of the POBO

Any conflict of interest?

Yes No

Make declaration to the principal Accept

Annex 15 — page 1 15

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:19 PM Annex 16 Hong Kong Housing Society Property Management Advisory Centres

Hong Kong Housing Society

29/F., World Trade Centre, 280 Gloucester Road, Causeway Bay, Hong Kong

24-Hour Information Hotline 2882 1717

Facsimile 2882 2001

Web Site www.hkhs.com

Property Management Advisory Centres:

Central and Western 2839 7183

Eastern 2839 7480

Sham Shui Po 2839 7186

Yau Tsim Mong 2839 7185

Tai Kok Tsui 2839 7171

To Kwa Wan 2839 7456

Tsuen Wan 2839 7184

Tai Po 2839 7400

Yuen Long 2839 7128

Main Office 2839 7188

Web Site bmms.hkhs.com

E-mail address [email protected]

Facsimile 2972 2385

16 Annex 16 — page 1

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:19 PM Annex 17 Financial Assistance Schemes

(a) Buildings Department – Building Safety Loan Scheme

(b) Hong Kong Housing Society – Building Management and Maintenance Scheme

Annex 17 — page 1 17

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:19 PM

the their of approved towards its safety of contribute improving regardless who for security works owners of out provide to number carrying the in required is among assistance applicant apportioned financial as (company obtain Building Safety Loan Scheme works, to the of $50,000 wishing costs above or owners total at loan exceed individual for not to shall loans required is amount Web site : http://www.bd.gov.hk/english/services/index_bsils.html Web provide project, subject to a ceiling of $1 M per unit of accommodation for building-cum-fire safety improvement works safety improvement subject to a ceiling of $1 M per unit accommodation for building-cum-fire project, slope maintenance works a ceiling of $1 M per unit accommodation for preventive loans interest-bearing no means test loans for those with genuine financial hardship interest-free security loan amount) to owner of private building registered by the Scheme maintenance works to be carried out falling within the scope of covered improvement/ provision/ competent contractors appointed to supervise the works qualified building professionals/ loan buildings and/or private slopes • • • • • • • • • • Buildings Department – Building Safety Loan Scheme Objective Details Eligibility Criteria Annex 17 (a) Annex Hotline : 2626 1579

17 (a) Annex 17 (a) — page 1

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:19 PM

a is or the or of building Person areas whichever the unit, of common Authorized parts for an residential by per common insurance the $3,000 monitored of or liability and repair works for public the for Contractor of cost contribution premium Registered the project a of by Building Maintenance Incentive Scheme total insurance 50% out (For repair works in common areas of a building) works in common areas (For repair the to the of of carried 20% be 50% of amounting should exceeding subsidy subsidy Not exceeding $78,000 p.a. for urban properties (including Shatin, Kwai Tsing and Tsuen Wan) and Tsuen (including Shatin, Kwai Tsing Not exceeding $78,000 p.a. for urban properties properties Not exceeding $59,000 p.a for New Territories recipient recipient of Comprehensive Social Security Assistance or medical fee waiver or comply with income / asset limit the owned by the applicant in Hong Kong the only property the property in the building is granted approval-in-principle of Building Maintenance Incentive Scheme or composite buildings; and Private residential to issue date of Occupation Permit); and Buildings of 20 years old or above (according units : rateable value of residential Average Outside Urban Renewal Authority's "Building Rehabilitation Scheme" areas units than 400 residential Estate/building comprising no more Buildings with Owners' Corporation. The applicant must be in name of the Corporation Works professional consultant employed direct by the OC under guidance of Housing Society consultant employed direct professional Not A lower* A building will be granted, subject to a ceiling of $6,000 p.a. for not more than 3 years building will be granted, subject to a ceiling of $6,000 p.a. for not more $10,000, whichever is the lower**, would be granted to elderly owner with following eligibility: For maintenance incentive, the maximum amount per residential unit shall not exceed $3,000 which shall also be the aggregate limit together with all other applications to this scheme within a period of 5 applications will not be considered. approved in previous years. Repair items covered • • • - - • • • • Cash subsidy will be granted to encourage OCs to carry out repairs and maintenance works related to hygiene and safety, environmental protection in common areas of the buildings, e.g. repairs on external wall, spalling, replacement of pipes / fire services installations, energy saving device installation landscaping work and Not applicable • • • - aged 60 or above - - - Not applicable Not applicable * ** For elderly owner the subsidy, aggregate incentive amount for an eligible applicant shall not exceed of the flat within same building which has successfully $10,000 within a period of 5 years irrespective in principle. applied for maintenance incentive and granted with approval

owner Owners' composite or registered without a be Corporation) must buildings residential Incentive Scheme Building Management (For formation of Owners' of subject building buildings; and with the Building Management Ordinance Applicant The OC shall be formed in compliance Private Subject Corporation(OC); and • • • • Cash subsidy granted to help and encourage owners of private buildings to form OC Not applicable Each Owners' Corporation successfully formed under the scheme will be granted $3,000* Not applicable Not applicable *Irrespective of the number of applications, the total incentive amount for each development (according to DMC) is $3,000

to all Hong and in individual/ (according owner property the above registered or other the old include be Website : bmms.hkhs.com Website no years has must must

20 of (For repair works inside flats) (For repair applicant Home Renovation Loan Scheme applicant applicant Not exceeding $78,000 p.a. for urban properties (including Shatin, Kwai and Tsing Wan) Tsuen Not exceeding $59,000 p.a. for New Territories properties and properties; Private residential Properties issue date of Occupation Permit); and Loan Kong Loan joint owner of the property(not owned by companies) Loan co-owners of the property • • • Rateable value : - - • • • Loans Loans are provided to help flat owners to carry out flat interior repairs and maintenance works related to safety and hygiene of the premises, e.g. replacement of window, electrical cable, drainage installations and removal of unauthorized building works Maximum $50,000 A subsidy amounting to 50% of the loan or would be granted $10,000, whichever is the lower, to the loan applicant aged 60 or above who is the recipient of Comprehensive Social Security Assistance or medical fee waiver or comply with the income / asset limits The loan is repayable by 36 equal monthly installments. The first installment will be due 30 days after the drawdown of full loan Subject to a legal charge on the property in favour of HKHS for loan exceeds $25,000 Interest free Interest Eligibility Criteria Loan / Incentive Use Loan Amount Incentive Amount Repayment Arrangement Remarks Interest Annex 17 (b) Hong Kong Housing Society – Building Management and Maintenance Scheme Annex Hotline : 2882 1717

Annex 17 (b) — page 1 17 (b)

ICAC_Eng_Annex.indd 3 2008/4/9 8:42:19 PM

of but OC with the over owner continuous or to old rehabilitation providing for made by years undertake be to 20 at may consensus agrees rehabilitation building $10,000 which reached of building have composite amount facilitate or established building and OC Building Rehabilitation Loan Scheme the maximum with of in residential encourage grant genuine financial difficulty a to with technical supports and loan. private still serviceable are building up-keeping of the building owners the building and an AP has been appointed •maximum loan amount is $100,000 • no means and asset tests free • interest individual owners • loan applicants must be domestic registered period up to 60 months • repayment to the OC • technical support and advice provided • • • any government from departments received • no statutory works order • • “Building Rehabilitation Scheme” areas • building situated within URA’s

of of but OC the 20% flushing over individual / continuous or to Coordinated exceed old rehabilitation providing made for not drainage BD’s by years undertake be will to 20 paint; may under at consensus wall provided agrees Building Rehabilitation Schemes rehabilitation – actions building $10,000 which of reached building materials have statutory amount composite (external/internal to facilitate or established building and rehabilitation OC the maximum materials subject with such of in residential Web site : www.ura.org.hk Web of Building Rehabilitation Material Incentive Scheme encourage grant to owner with genuine financial difficulty with technical supports and incentive materials the total cost of works or $3,000 per unit (whichever is lower) to the OC technical support and advice provided a Maintenance Maintenance of Buildings Scheme or “Blitz” Operations or other statutory order relevant building up-keeping of the building owners private are still serviceable are building water / fresh water piping materials; water-proofing materials forre- to the OC works, etc.) provided roofing value incentive the building and an AP has been appointed • • • “Building Rehabilitation Scheme” areas • building situated within URA’s • • • • • • Urban Renewal Authority Objective Eligibility Criteria Details Annex 17 (c) Annex Hotline : 2588 2333

17 (c) Annex 17 (c) — page 1

ICAC_Eng_Annex.indd 4 2008/4/9 8:42:19 PM Annex 18 Contact of ICAC

Corruption Reporting Any party may lodge a corruption complaint with the ICAC through the following channels :

By phone : 25 266 366 (24-hour hotline) By mail : G.P.O. Box 1000, Hong Kong In person : ICAC Report Centre (24-hour service) G/F, 303 Java Road, North Point, Hong Kong or Any ICAC Regional Offices

Enquiries Any party may also contact the ICAC Regional offices for enquiries about integrity management. For enquiries concerning this Toolkit and related matters, please call the Integrity and Quality Building Management and Maintenance Hotline: 2929 4555

ICAC Regional Offices :

Hong Kong East

Address : Ground Floor, Tung Wah Mansion, 201 Hennessy Road, Wanchai, H.K. Tel : 2922 8733 (Liaison) 2519 6555 (Report) Fax : 2519 7762 Email : [email protected]

Hong Kong West / Islands

Address : Ground Floor, Harbour Commercial Building, 124 Connaught Road, Central, H.K. Tel : 2921 6812 (Liaison) 2543 0000 (Report) 17 Fax : 2189 7001 Email : [email protected]

Annex 18 — page 1 18

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:19 PM Kowloon East / Sai Kung

Address : Shop No.4, G/F, Kai Tin Building, 67 Kai Tin Road, Lam Tin, Kowloon Tel : 2927 4300 (Liaison) 2756 3300 (Report) Fax : 2755 9036 Email : [email protected]

Kowloon West

Address : Ground Floor, Nathan Commercial Building, 434-436 Nathan Road, Kowloon Tel : 2928 6397 (Liaison) 2780 8080 (Report) Fax : 2770 3415 Email : [email protected]

New Territories East

Address : G06-G13, G/F, Shatin Government Offices, 1 Sheung Wo Che Road, Shatin, New Territories Tel : 2158 5920 (Liaison) 2606 1144 (Report) Fax : 2604 7116 Email : [email protected]

New Territories North West

Address : G/F, Fu Hing Building, 230 Castle Peak Road, Yuen Long, New Territories Tel : 2920 6530 (Liaison) 2459 0459 (Report) Fax : 2450 7925 Email : [email protected]

New Territories South West

Address : G/F, Foo Yue Building, 271-275 Castle Peak Road, Tsuen Wan, New Territories Tel : 2920 3500 (Liaison) 2493 7733 (Report) Fax : 2413 8490 Email : [email protected]

18 Annex 18 — page 2

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:19 PM Annex 19 Advisory Services Group - Consultancy Services to Private Sector

The Advisory Services Group (ASG) of the Corruption Prevention Department, ICAC provides consultancy service to private organizations, e.g. PMCs, consultants and contractors, assisting them in improving management systems, adopting best practices and control measures, and drawing up a code of conduct to prevent abuse and corruption. Every year, ASG provides tailor-made advice to over 300 private organizations on a wide spectrum of systems, such as procurement, store management, sales and accounting, staff administration, works- related contract letting and management, etc. • ASG's service is :  ➣ Free of charge  ➣ Tailor-made to suit the organization's needs • All information is handled with strict confidence • ASG pledges to respond to your request within two working days.

To seek advice from the group, please contact :

Hotline : 2526 6363 Fax : 2522 0505 Email : [email protected] Website : www.icac.org.hk

Annex 19 — page 1 19

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:19 PM Annex 20 Useful Contacts

OCs / Owners may contact the following government departments and organizations for assistance and enquiry related to building maintenance works. Readers can also refer to the relevant websites of the Government departments, organizations and institutes for the most updated details of the contacts.

Government Departments

Buildings Department Enquiries about : 12/F, Pioneer Centre, 750 Nathan Road, Kowloon • Repair orders and Web Site www.bd.gov.hk other statutory orders E-mail Address [email protected] • Unauthorized building Enquiry and Complaint Hotline 2626 1616 works and dangerous (24 hours) private buildings Facsimile 2537 4992 • Building Safety Building Information Centre Monday to Friday Loan Scheme Opening hours: 9:00 a.m to 5:00 p.m. • Register of APs, RSEs, RGBCs and other Registered Specialist Contractors

Fire Services Department Enquiries about : Fire Services Headquarters, 1 Hong Chong Road, Tsim Sha Tsui East, Kowloon • Fire safety and prevention Web Site www.hkfsd.gov.hk/home • Fire Safety Directions E-mail Address [email protected] • FSI Contractors Enquiry and Complaint 2723 8787 Hotline (24 hours) • Fire Service Installations Fire Safety Command / Building 2272 9112 • Fire hazards and Improvement & Support Division dangerous goods Facsimile 2716 2970 The local fire stations can be contacted for any inquiry related to fire services.

20 Annex 20 — page 1

ICAC_Eng_Annex.indd 1 2008/4/9 8:42:19 PM Civil Engineering and Development Department Enquiries about : Civil Engineering and Development Building, 101 Princess Margaret Road, Homantin, Kowloon • Information on slope safety and maintenance Community Advisory Unit on Slope Safety Telephone 2760 5800 E-mail Address [email protected] Departmental Web Site www.cedd.gov.hk Hong Kong Slope Safety Web Site hkss.cedd.gov.hk Facsimile 2714 0140

Drainage Services Department Enquiries about : 43/F, Revenue Tower, 5 Gloucester Road, Wanchai, Hong Kong • Drainage matters relating Web Site www.dsd.gov.hk to the connection of E-mail Address [email protected] private drains to the public drainage system Drainage Complaint 2300 1110 Hotline (24 hours) General Enquiry 2877 0660 Customer Services Enquiry 2834 9432 (Sewage Services)

Facsimile 2827 8605

Electrical and Mechanical Services Department Enquiries about : 3 Kai Shing Street, Kowloon, Hong Kong. • Electrical installation Web Site www.emsd.gov.hk notices E-mail Address [email protected] • Gas installation notices Hotline (24 hours) 1823 • Lift installation notices Facsimile 2890 7493 • Registered Electrical Customer Services Office Monday – Friday Contractors (Closed on Saturdays, • Registered Gas Sundays and Public Holidays) Installers, Registered Gas Contractors and Office Hours : 9:00am - 5:15pm Competent Persons • Registered Lift Contractors and Engineers

Annex 20 — page 2 20

ICAC_Eng_Annex.indd 2 2008/4/9 8:42:19 PM Home Affairs Department Enquiries about : 21/F, China Overseas Building, 139 Hennessy Road, Wanchai, Hong Kong • Building management matters Web Site www.buildingmgt.gov.hk • Formation of OC E-mail Address [email protected] • Legal requirements Facsimile 2147 0984 under BMO about District Building Management letting of contracts Liaison Teams of 18 District Offices :

Central and Western 2119 5010 Eastern 2886 6569 Southern 2814 5762 Wan Chai 2835 1999 Kowloon City 2621 3406 Kwun Tong 2171 7465 Sham Shui Po 2150 8175 Wong Tai Sin 3143 1160 Yau Tsim Mong 2399 2155 Islands 2852 4318 Kwai Tsing 2494 4543 North 2675 1719 Sai Kung 2163 9431 Sha Tin 2158 5388 Tai Po 2654 1262 Tsuen Wan 3515 5654 Tuen Mun 2404 6535 Yuen Long 2478 6120

Water Supplies Department Enquiries about : 48/F Immigration Tower, 7 Gloucester Road, Wan Chai, Hong Kong • Notices about unauthorized alteration Web Site www.wsd.gov.hk of water works, pollution E-mail Address [email protected] of a water supply and Customer Service Hotline 2824 5000 other non-compliance of Waterworks Ordinance Facsimile 2824 0578 • Application for water supply and billing information • Licensed Plumbers

20 Annex 20 — page 3

ICAC_Eng_Annex.indd 3 2008/4/9 8:42:19 PM Building Maintenance Related Organizations

Hong Kong Housing Society Enquiries about : Head Office : 29/F World Trade Centre, 280 Gloucester Road, Causeway Bay, Hong Kong • Technical advice on building Web Site www.hkhs.com maintenance works E-mail Address [email protected] • Financial assistance : General Enquiry 2839 7888 Building Management 24-hour information hotline 2882 1717 and Maintenance Scheme (Annex 17b) Facsimile 2882 2001 Property Management Advisory Centres (Annex 16)

Urban Renewal Authority Enquiries about : Head Office :10/F Low Block, Grand Millennium Plaza, 181 Queen's Road Central, Hong Kong • Financial assistance for buildings located within Web Site www.ura.org.hk specified renewal areas : E-mail Address [email protected] Building Rehabilitation Hotline 2588 2333 Schemes (Annex 17c) Facsimile 2827 0176 • Technical advice to eligible applicants of the Building Rehabilitation Schemes

Annex 20 — page 4 20

ICAC_Eng_Annex.indd 4 2008/4/9 8:42:19 PM Professional Bodies Building professionals are mainly architects, engineers and surveyors who are involved extensively in building construction, alteration and maintenance matters. Many of them are members of the Hong Kong Institute of Architects, the Hong Kong Institution of Engineers and the Hong Kong Institute of Surveyors.

The Hong Kong Institute of Surveyors

Suite 801, Jardine House, 1 Connaught Place, Central, Hong Kong Web Site www.hkis.org.hk E-mail Address [email protected] Tel No. 2526 3679 Facsimile 2868 4612

The Hong Kong Institution of Engineers 9/F Island Beverley, 1 Great George Street, Causeway Bay, Hong Kong Web Site www.hkie.org.hk E-mail Address [email protected] Tel No. 2895 4446 Facsimile 2577 7791

The Hong Kong Institute of Architects 19/F One Hysan Avenue, Causeway Bay, Hong Kong Web Site www.hkia.net E-mail Address [email protected] Tel No. 2511 6323 Facsimile 2519 6011

20 Annex 20 — page 5

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