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The Competition Commission has launched an investigation into 14 contractors and consultancy firms suspected of rigging bids for building maintenance contracts worth an estimated HK$700 million.
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In a two-day operation, the commission executed court warrants to inspect 27 premises, including company offices and the residences of individuals involved in the suspected conduct.
Preliminary findings suggest the firms engaged in anticompetitive practices, including bid-rigging, during tender exercises for building maintenance works at 17 housing estates and buildings across Hong Kong.
The operation marks the commission’s fourth major enforcement action targeting bid-rigging in the building maintenance market in the past two years.
Following in-depth analysis of evidence obtained from previous cases, the commission said it uncovered another bid-rigging syndicate that had remained concealed within ongoing investigations.
Investigators believe the syndicate is orchestrated by a project contractor whose network involves other contractors, consultancy firms, and related parties operating across the city.
The commission said the alleged mastermind obtained confidential cost estimates from a consultancy firm before directing other contractors to submit inflated “pig quotes,” creating a false appearance of genuine competition and ensuring a predetermined bidder would win the tender.
In some cases, contractors are suspected of taking turns acting as “cover bidders,” knowingly submitting losing bids to support a designated winner.
The commission said many of the related building maintenance contracts linked to the syndicate are still awaiting award, raising concerns about ongoing risks to market fairness.
It has begun contacting relevant stakeholders at all affected buildings.
To safeguard the effectiveness of the investigation, the commission declined to provide further details, but said it will make an announcement once the probe is completed.
