Hong Kong proposes criminal penalties for bid-rigging in building maintenance
Hong Kong's commerce chief outlined legislative reforms to criminalise serious anti-competitive conduct in building maintenance tenders, including bid-rigging, with penalties of up to 10 years in jail and fines of HK$10 million or three times the commercial gain. The proposals also raise civil penal
The Secretary for Commerce and Economic Development told the Legislative Assembly on 4 November 2026 that the government will introduce criminal offences for serious anti-competitive behaviour in building maintenance procurement, following the release of an independent commission report on a fire at Tai Po's Wang Fu Court.
Speaking during a debate on a motion by legislator Fong Kwok-shan, the Secretary said the government would conduct a full-process review of building maintenance, from the first step to key stages. After reviewing existing laws, enforcement mechanisms and departmental divisions, the government decided to amend legislation and strengthen enforcement in a multi-pronged approach to crack down on bid-rigging in building maintenance works.
The proposed criminal offences target four types of serious anti-competitive conduct: bid-rigging, price-fixing, market allocation and output restriction. These offences would cover not only the construction works themselves but also related consultancy services, procurement and preparatory work. The maximum penalty would be 10 years' imprisonment and a fine of up to HK$10 million, three times the commercial gain from the violation, or 50 per cent of the local turnover of the business entity for each year the violation occurred.
The government also proposes to include the new criminal offences under the Organised and Serious Crimes Ordinance and the Prevention of Bribery Ordinance to strengthen investigative powers and deterrence. A dual-track enforcement model – criminal and civil – would be adopted to flexibly target bid-rigging in maintenance works depending on the case.
Alongside the criminal provisions, the government will raise the maximum civil penalty under the Competition Ordinance from 10 per cent of local turnover for up to three years to HK$8 million, twice the illegal commercial gain, or 30 per cent of local turnover for up to three years. The maximum director disqualification period would be extended from five to 15 years, and the statutory limitation period for applying for penalties or other orders would be extended from five to 10 years.
The government also plans to enhance the Competition Commission's ability to gather information for market studies, requiring a 'reasonable cause to suspect' that a market has features that prevent, restrict or distort competition. The Secretary said the reforms would ensure offenders face consequences, give law-abiding businesses a fair chance to compete, and protect public interests.
