Hong Kong contractor seeks HK$290m from steel-fixing subcontractor over Anderson Road project defects
The original contractor for the Anderson Road "Starter Homes" project has sued its steel-fixing subcontractor for breach of contract, claiming over HK$290 million in losses after three towers were found to have seriously misplaced steel reinforcement and had to be demolished and rebuilt.
The original contractor for the Anderson Road "Starter Homes" project in Kwun Tong has filed a lawsuit in the High Court against its steel-fixing subcontractor, alleging breach of contract that led to severe losses of more than HK$290 million. The case comes after it was revealed that steel reinforcement in three of the project's towers seriously deviated from design drawings, forcing the developer to demolish and rebuild them.
The plaintiff, Excellence Sky Engineering Limited, was the original contractor for the Anderson Road project. The defendant, Tak Wang Construction Limited, was a subcontractor that secured a steel-fixing contract for the project in September 2023, with a 915-day term and a service fee of approximately HK$63 million.
According to the writ of summons, as of 15 October 2024, a total of 17,494 tonnes of steel reinforcement had been supplied for the project — about 11 per cent more than required by the design drawings. The defendant was responsible for the steel-fixing works.
The writ also alleges that the defendant's breach of contract seriously affected construction progress, forcing the plaintiff to spend heavily on investigations and remedial plans. Ultimately, the developer decided to demolish and rebuild three of the towers.
The plaintiff claims the incident has caused significant damage to its reputation and is seeking compensation of about HK$290 million, covering contractual damages and expenses arising from the incident.
