Government addresses contractor payment defaults in public housing projects

The government is concerned about main contractors’ payment defaults in public housing projects but insists this issue will not affect the housing goals for the next decade. 

Secretary for Housing Winnie Ho Wing-yin said at the Legislative Council meeting on Wednesday that for individual projects facing wage arrears, the Housing Authority and the Housing Society have taken immediate action to urge the main contractors to resolve the issues. 

Ho noted that the Housing Authority is also in the process of changing contractors for the project in Hung Shui Kiu, saying that they will monitor the contractors through a performance evaluation mechanism. 

She reiterated that despite individual incidents, the overall public housing construction targets for the next decade will remain unchanged. 

Ho added that the engineering team will hold frequent meetings to expedite work and minimize delays. 

Election Committee constituency lawmaker So Cheung-wing suggested introducing a third-party platform for timely project payments. 

Ho said they would consider So’s suggestion and explained that under the current mechanism, main contractors must submit a subcontractor management plan detailing subcontractors, contracts, and payment records, which will be reported to the project management team.

Lawmaker for Kowloon West Scott Leung Man-kwong, a member of the Subsidized Housing Committee, inquired about measures for large contractors going out of business. 

Ho said that interdepartmental communication has led to various measures, including payment protection regulations from the Development Bureau, to streamline cash flow and ensure project health. 

(Cheng Wong)