What Changed
- Targeted criminalisation of bid-rigging, price-fixing, market sharing, and output restrictions in building maintenance tenders with penalties up to 10 years' imprisonment.
- General civil regime enhancements under the Competition Ordinance, extending maximum director disqualifications to 15 years and tribunal application periods to 10 years.
- Classification of the new criminal offence under Cap. 455 and Cap. 204 to grant law enforcement witness order, production order, sentence enhancement, and asset confiscation powers.
Building contractors, consultants, professionals, and property owners' corporations in Hong Kong SAR face significant regulatory shifts following government proposals to criminalise bid-rigging in building maintenance and renovation projects. Announced on October 30, 2026, by the Security Bureau and the Commerce and Economic Development Bureau alongside law enforcement agencies, the reform follows an Independent Committee report concerning a fire at Wang Fuk Court in Tai Po.
Under existing legislation, bid-rigging is primarily addressed through the civil regime of the Competition Ordinance (Cap. 619). The proposed legislative amendments will create a new criminal offence under Cap. 619 targeting four serious anti-competitive practices in building maintenance and renovation: bid-rigging, price-fixing, market sharing, and output restrictions. Regulation will cover both works contracts and preliminary arrangements, such as consultant engagements. Individuals and undertakings convicted face maximum penalties of 10 years' imprisonment and fines up to the highest of $10 million, three times the commercial gains, or 50 per cent of local annual turnover.
Parallel reforms will enhance the Competition Ordinance's general civil regime across all sectors. Proposed civil amendments include increasing pecuniary penalties, extending maximum director disqualification orders from 5 to 15 years, expanding application time limits from 5 to 10 years, explicitly applying the balance of probabilities standard of proof, and introducing a statutory presumption regarding concerted practices.
To strengthen investigative capabilities, the government plans to incorporate the new offence into the Organized and Serious Crimes Ordinance (Cap. 455) and the Independent Commission Against Corruption Ordinance (Cap. 204). This will grant agencies powers to seek Witness Orders (carrying penalties up to 3 years' imprisonment and a $500,000 fine for non-compliance), Production Orders (carrying penalties up to 1 year imprisonment and a $100,000 fine), enhanced sentences, and asset confiscation orders.
Operationally, a joint task force led by the Secretary for Security—comprising representatives from the Hong Kong Police Force, the Independent Commission Against Corruption (ICAC), and the Competition Commission—will execute joint enforcement, intelligence sharing, and frontline prevention at owners' corporation meetings.
Who May Be Affected
Building maintenance contractors, consultancy firms, construction professionals, property managers, owners' corporations, and directors operating in Hong Kong SAR.
Cross-Border Context
Cross-border construction firms, engineering consultancies, and property management groups operating in Hong Kong SAR must update compliance programs to manage severe criminal exposure, statutory disclosure duties, and potential director disqualifications.
What to check next
- Introduction of legislative amendment bills into the Hong Kong Legislative Council
- Issuance of regulatory guidance or public consultations by the Competition Commission or Security Bureau
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.