Assurances over payment woes of public housing contractors

Cheng Wong

The government has expressed concerns about payment defaults by main contractors in public housing projects but insists this will not affect medium-term housing goals.

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

Ho noted that contractors will be monitored through a performance evaluation mechanism.

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

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 management plan detailing subcontractors, contracts and payment records, which will be sent to project management teams.

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 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@singtaonewscorp.com