Govt to conduct background checks for 'Smart Tender' contractors and consultancy firms

The government will introduce background checks on contractors and consultancy firms under the “Smart Tender” Building Rehabilitation Facilitating Services in the second half of the year, according to Secretary for Development Bernadette Linn Hon-ho

Speaking on a television program, Linn stated that the arrangement also involves creating a pre-qualification list of these service providers for the scheme, which is run by the Urban Renewal Authority (URA).

The scheme is a fee-based service aimed at assisting owners' organizations with building rehabilitation works, with an electronic tendering platform to facilitate the procurement of consultancy services and qualified registered contractors for maintenance works.

Linn said the URA will investigate the background of company directors to prevent penalized individuals from registering new companies to participate in the scheme.

The statutory body will also review company performance, including whether any government departments have issued warning letters and whether public complaints have a reasonable basis. Cases under investigation that have not yet led to prosecution will also be taken into account.

Furthermore, Linn explained that the URA will scrutinize maintenance costs to prevent market price inflation and reserves the right to cancel a tender if bid prices are found to be unusually close or deviate from the price index.

She also noted that after the URA awards a major maintenance contract, the contractor must report any modifications to the project costs. 

The URA will then advise the property owners, and the terms will specify which party holds the final decision-making authority in the event of disputes.

Linn expects the measures to be launched in the second half of this year and emphasized that this institutional reform is government-led, not an attempt to shift responsibility to the URA. 

She added that the government will provide the URA with additional staff and resources to support the implementation.