Hundreds of property owners in Hong Kong are grappling with uncertainties after 28 private buildings and estates were ordered to suspend renovation work carried out by a contractor linked to the deadly blaze at Wang Fuk Court and two other firms.
Residents at three of the estates told the Post they had already spent millions of Hong Kong dollars on the projects and were now uncertain whether the work was proper or how long the delay would last, with some struggling to choose a new contractor.
But some experts advised owners to wait for the Buildings Department’s review of the work carried out by Prestige Construction and Engineering Company and the two other firms, before making any decision, as switching could lead to possible contract disputes and extra costs.
“I am worried that I have paid more than the actual cost ... I feel they didn’t do much but had asked for so much money,” said Tracy Lee, a resident at the 49-year-old On Fung Building in the Mid-Levels.
Lee said each of the estate’s 102 households had to pay HK$200,000 (US$25,693) for the renovation, which began several years ago.
According to a notice posted at the building, Prestige handled the fire services improvement work, which started on March 17 and ended last month.
“I also saw workers smoking. I told the security guards, but it was in vain,” Lee said.
The department announced last week the temporary suspension of renovation work at 30 projects involving 28 private buildings and estates and demanded independent safety audits and improvement plans from the three contractors.
The department said some renovations might involve only individual flats. There are more than 3,800 flats in all the projects, according to the Post’s calculations.
Twenty-eight projects, involving 26 buildings or estates, hired Prestige as their registered contractor, the same as Wang Fuk Court in Tai Po. Eleven of the projects involved repairs, and 17 were about additions and alterations.
Two directors and an engineering consultant of Prestige have been arrested on suspicion of manslaughter, as well as in connection with a corruption probe related to Wang Fuk Court.
Labour Department records show that Prestige had previously been convicted of safety offences. But a progress report for the Wang Fuk Court renovation work, submitted by project consultant Will Power Architects, explicitly certified that the contractor had neither litigation records with owners nor any convictions by the department.
The two other contractors tied to the suspension order, Yuen Fat Construction Engineering and Fulam Construction Engineering Company, were found to have used plastic sheeting for work on Fortress Garden in North Point and China Travel Building in Central.
Authorities deemed the practice unsafe as an initial investigation found styrofoam used to protect windows at Wang Fuk Court had worsened the spread of flames.
The department said it would only consider lifting the suspension when the contractors had demonstrated they had an “effective safety management system”.
At the 37-year-old Fortress Garden, work began two months ago to repair walls and replace pipes at Fu Kar Court at a cost of more than HK$30 million, according to one homeowner who declined to be named.
“Luckily, we have yet to pay all the fees to the contractor ... The owners’ corporation is discussing whether to hire another contractor instead,” said the resident, who had already paid over HK$40,000 and was expected to pay more.
According to the department, Prestige is the estate’s renovation project manager and Yuen Fat Construction Engineering is the contractor.
Another resident at the block with 248 households, who gave her name as Yan, was concerned whether the renovation cost was too high, but stressed she was not a professional and had not compared prices.
She also had reservations about the credibility of the companies involved, after authorities said a scaffolding netting manufacturer allegedly falsified safety certificates for materials used at Fortress Garden.
“I definitely hope someone can take over the project, but I think it’s difficult,” she said.
In Yau Ma Tei in Kowloon, a member of the owners’ corporation of Nathan Apartment, who declined to be named, said the building hired Prestige for repairs under the mandatory building inspection scheme and fire safety improvement work.
Owners of the 67-year-old building with roughly 70 flats, split into two sections, had to pay about HK$170,000 for both projects, and most procedures had been completed.
“It will be difficult to hire another contractor to wrap up work,” the resident said, adding the owners’ corporation was still waiting for its consultant to follow up.
“We just hope the work can be completed as soon as possible,” the resident said.
Professor Yau Yung from Lingnan University, a professional member of Britain’s Royal Institution of Chartered Surveyors, said the government should test the materials used at the sites rather than simply examine documents and certificates.
“The government should not simply rely on the self-regulation or self-reporting of the contractors, or even supervising professionals,” he said. “The Buildings Department should take proactive actions to see if fake reports or certificates have been used, and the materials actually used on site are up to standard.
“It is important to rebuild public confidence in the whole building control system.”
Kenny Tse Chi-kin, chairman of the Hong Kong Institute of Surveyors’ building policy panel, said the department’s review should look into whether the materials used complied with fire-retardant standards and fire safety equipment was functioning properly.
Residents could also work with their property management companies to check fire safety equipment and evacuation routes, as well as learn more about the insurance covering the properties, Tse said.
But he urged residents to wait for the department’s review of the projects before taking any major step such as changing a contractor.
Legislator Tony Tse Wai-chuen from the architectural, surveying, planning and landscape sector said residents should only hire a new contractor after prudent consideration.
“Changing a contractor will extend the renovation period. It also involves higher costs and contractual issues,” he said.
Chiu Yan-loy, founder of the Property Owners’ Anti Bid-Rigging Alliance, said owners of properties undergoing large-scale renovation generally had to wait for at least a year, or even three to four years, before a newly hired contractor could start work.
He said the wait usually stemmed from negotiations between the initial contractor and the new one, as they would discuss passing on materials and tools, such as scaffolding.
Note: The Building Department has clarified that the number of suspended projects comprises 28 private buildings and estates, not 29. -- SOUTH CHINA MORNING POST
