2025-02-21 28Hse Editor
The recent billion-dollar rehabilitation project at Neptune Terrace in Chai Wan has sparked heated discussions in the city. Homeowners were unhappy about the building management committee’s failure to disclose the engineering contract and excessive costs, with each household required to pay HK$100,000 in building repair fees. Eventually, at a special general meeting, 99% of the votes were cast to immediately terminate and suspend the engineering contract with the maintenance contractor, and new members were elected to the building management committee.
Major building repair projects often spark controversy, with frequent incidents of exorbitant bidding. Why are major repairs necessary for buildings? Like people, buildings age and develop various issues over time, such as water leaks and drainage problems, hence the need for preventive inspections and repairs to maintain satisfactory building conditions.
The government implemented the "Mandatory Building Inspection Scheme" on June 30, 2012. This scheme requires private buildings that are 30 years old or older and have more than three stories to appoint a registered inspector to conduct inspections within a specified deadline set by the Buildings Department. If specified repairs are needed, the relevant owners must appoint a registered contractor to carry out the repairs under the supervision of the registered inspector.
Under the "Mandatory Building Inspection Scheme," the inspection scope includes external building components, structural components, fire safety components, and drainage systems. It also aims to identify unauthorized constructions in the common parts of the building, outside the common parts, or on any street facing or adjacent to the building.
Since property repair costs can significantly exceed your budget, if owners are considering purchasing properties over 30 years old, they should inquire whether major repairs have been done or when they are scheduled. Understanding this can help prospective new owners gauge whether they will need to contribute to repair costs soon, which could be a substantial burden.
If the original owner and buyer sign a provisional agreement for sale and purchase, and then the building receives a statutory notification from the Buildings Department about the mandatory inspection, who bears the repair costs? Typically, the responsibility is determined by the date of transaction, which is based on the date the provisional contract is signed. Therefore, the buyer would be responsible for the costs.
For buildings due for major repairs, owners should review various repair bids, compare different contractors' offers and work details, and check if the building is participating in the Urban Renewal Authority's "Smart Tender" service. This service provides professional valuation and an electronic bidding platform to help owners find qualified engineering consultants and contractors, reducing the risk of collusive tendering.
Additionally, as repair quotations vary widely, owners who want to compare costs or determine if the fees are reasonable can refer to the building repair platform's website to view different types of building repair costs.
Lastly, it's important to note that the government previously launched the " Operation Building Bright 2.0 Subsidy." Owner-occupiers can apply for a subsidy of up to HK$40,000 for public area repairs, and those aged 60 or above can receive up to HK$50,000. Owners should be aware of such repair subsidies when undertaking major repairs.
Like 47
