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If an OC has been formed, it shall comply with the regulations in the Building Management Ordinance and Code of Practice on Procurement of Supplies, Goods and Services governing the tendering work consultant. Relevant statutory regulations are as follows:


Summary of procurement regulations

(i) Any contract for work consultancy services whose value exceeds or is likely to exceed:


 -HK$200,000; or

 -20% of the annual budget of the OC (whichever is lower);


  shall be procured by invitation to tender.


(ii) If the value of the work consultancy services exceeds or is likely to exceed 20% of the annual budget of the OC, then the MC shall table all

        received tenders at the owners’ meeting convened by the OC, where their acceptance shall be determined by a majority vote.


Summary of Code of Practice

(i) The minimum number of tenders to be invited shall be as follows:

 -three in the case of a contract for the procurement of supplies, goods or services whose value exceeds $10,000 but does not exceed $200,000; or
 -five in the case of a contract for the procurement of supplies, goods or services whose value exceeds $200,000;

(ii) All tenders must be opened simultaneously under the witness of at least three members of the MC, who shall sign and date each of the tenders;

(iii)   The MC shall not split a contract of procurement from an original contract of procurement of greater value for the sole purpose of avoiding

        compliance with provisions of Section 20A in the Building Management Ordinance.


Recommended Procurement Procedures

The following procedures are recommended, wherever possible, for the procurement of works consultant:
► Use the sample tender and contract document drafted by professional organisations (e.g. Hong Kong Institute of Surveyors) and Urban

        Renewal Authority (URA) at present or Building Rehabilitation Platform in the future;

► Ask all tenderers to sign ‘Probity and Anti-Collusion Clauses’, ‘Ethical Commitment Clauses’ and ‘Non-Collusion Clauses and Non-Collusive

        Tendering Certificate’;
► Ask all tenders to submit ‘Breakdown of Professional Consultancy Service Fees’
► Adopt open tendering for more transparency and less risk of collusive tendering;
► Waive any administrative fees (otherwise may discourage interested tenderers and thus undermine competitiveness);
► Define appropriate tender assessment criteria for approval at MC meeting/owners’ meeting convened by the OC before bid solicitation;
► Convene an owners’ meeting for the selection of work consultant with greater legitimacy.