I believe every Hong Kong resident feels deeply affected by the catastrophic Level Five fire in Tai Po. It is heartbreaking that a place once regarded as a world-class city, with wealth and stability, could experience a tragedy that resembles what we usually associate with developing countries. With my background in engineering, most of my friends work either in the accounting field or in the construction sector. Scandals within the construction industry are not new. In private companies, procurement controls can still be strengthened to prevent malpractice. However, for ordinary flat owners, especially those living in older buildings, the question becomes much more difficult. Without proper governance and oversight, how can they protect themselves?
Self-Help for Property Owners: What Owners of 30-Year-Old Buildings Must Do Now
Building repairs involving aging properties often involve large sums of money and attract interest groups that may not act in the best interest of owners. To avoid becoming another victim of governance failure, property owners must proactively establish safeguards. The following four measures are the minimum steps needed for effective self-protection.
1. Replace owners’ committee members who have held positions for more than four years
Long tenures increase the risk of close relationships forming between committee members, property management companies, and potential contractors. Regular rotation and the introduction of new members reduce the likelihood of conflicts of interest and bid-rigging.
2. Transparency is essential: financial records and meeting minutes should be disclosed quarterly
Transparency is the core of accountability. Owners should request quarterly financial statements, records of major decisions, and meeting minutes. With modern AI tools, long meetings can be fully recorded and indexed, enabling owners to understand whether committee members genuinely safeguard owner interests.
3. Use AI to review repair contracts and tender documents
Many owners are unfamiliar with technical engineering terms, giving contractors an advantage. AI tools can help review contracts, highlight unfair clauses, and identify unusual pricing. This helps owners avoid being misled or overcharged.
4. Strengthen payment control by using a third-party trust account
Payments should be handled by an independent third party, such as a law firm using a trust account. Funds should be released only when progress is verified by independent professionals. At least 20 percent of the total contract value should be reserved as retention money for follow-up work. If the project falls behind schedule, contracts must include late penalties.
Safeguards During Construction: Variation Orders, Safety, and Accountability
1. Define clear rules for variation orders before construction begins
Variation orders are commonly used to inflate project costs. Clear thresholds should be established. For example, if a variation exceeds one percent of the project value, it must be approved before work begins. This prevents contractors from using the tactic of executing work first and demanding extra payment later.
2. Unsafe practices by frontline workers should be documented and reflected in payments
If dangerous activities are observed, the committee should document them and deduct payments accordingly. For serious violations, relevant authorities should be notified immediately, including the Labour Department, Fire Services Department, or the Police. Construction safety is a shared responsibility, not merely the contractor’s duty.
3. Engage an independent third party to verify project completion
Once the repair work is completed, an independent professional should inspect and certify the project. The final 20 percent of retention money should only be released two years after completion, and only if no major defects are found.
Conclusion: Honoring the Victims by Pursuing Accountability
For the more than one hundred victims and families affected by the Tai Po tragedy, the best form of respect goes beyond compensation or relocation. The public must demand accountability. Bid-rigging, corruption, substandard construction, the use of illegal labor, and negligence by government officials must be investigated and addressed. Only a society that insists on transparency and responsibility can prevent similar tragedies from happening again.
May the victims rest in peace, and may Hong Kong learn to protect its communities with vigilance, courage, and integrity.
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