Key facts
- The proposed offence would cover bid-rigging, price-fixing, market sharing and output restrictions in maintenance and renovation tenders.
- Criminal liability would apply to individuals and undertakings, and extend to preparatory stages such as engaging consultants.
- The maximum fine would be the highest of HK$10 million, three times commercial gains, or 50% of local turnover per year.
- The government proposes designating the offence under the Organized and Serious Crimes Ordinance and the ICAC Ordinance.
- Civil penalties would rise to a cap of the highest of HK$8 million, twice commercial gains, or 30% of local turnover.
- Director disqualification orders would be extended from five years to 15 years under the proposals.
Hong Kong's government proposed on October 30, 2026, to criminalize bid-rigging and three other serious anti-competitive practices in building maintenance and renovation tenders, setting a maximum penalty of 10 years in prison. The plan follows an independent committee report into the Wang Fuk Court fire in Tai Po, which concluded that collusion in major maintenance and renovation works was a serious problem, with individuals linked to triad groups manipulating tenders.
The proposals would amend the Competition Ordinance to create a targeted criminal offence covering bid-rigging, price-fixing, market sharing and output restrictions. Criminal liability would apply to individuals and undertakings, and the scope would extend beyond works contractors to preparatory stages such as engaging consultants.
The government intends to bring the new offence within the ambit of the Organized and Serious Crimes Ordinance and the Independent Commission Against Corruption Ordinance, strengthening investigative powers and coordinating case handling by the Police, the ICAC and the Competition Commission. The commission would continue to pursue civil actions in parallel where appropriate.
The maximum fine would be the highest of HK$10 million, three times the total commercial gains from the contravention, or 50% of the undertaking's local turnover for each year in which the contravention occurred. The civil regime would also be strengthened beyond building maintenance, with the cap on pecuniary penalties rising to the highest of HK$8 million, twice the commercial gains, or 30% of local turnover for each year of contravention up to three years.
Other proposed changes include extending the maximum duration of director disqualification orders from five years to 15 years and lengthening the statutory limitation period for applications to the Competition Tribunal from five years to 10 years. The government also proposes confirming that the balance-of-probabilities standard applies to civil proceedings for penalties and introducing a statutory presumption linking concerted practices to subsequent market conduct.
Designating the offence as a specified offence under the Organized and Serious Crimes Ordinance would let agencies seek witness orders and production orders from the Court of First Instance, apply for enhanced sentences and obtain confiscation orders over crime proceeds. Non-compliance with a witness order would carry up to three years' imprisonment and a HK$500,000 fine, while non-compliance with a production order would carry up to one year's imprisonment and a HK$100,000 fine.
Secretary for Justice Paul Lam Ting-kwok said three days after the measures were unveiled that the proposed legislative amendments aimed to raise standards and strengthen oversight, describing the intended effect as a revolutionary overhaul of the city's building maintenance ecosystem.