Scope

The Ordinance applies to main contracts for carrying out construction work⁹ in Hong Kong (with the contract value of not less than HK$5 million) and main contracts for the supply of related goods (e.g. materials and plant) or services in relation to construction work (with a contract value of not less than HK$500,000). If the main contract is covered, all sub-contracts along the same supply chain, regardless of the amount, are also covered by the Ordinance. The Ordinance applies to both public¹⁰ and private¹¹ projects, but the former covers a wider range of projects. For instance, the Ordinance does not apply to (1) construction contracts for works on existing private residential buildings, such as interior renovation, building maintenance, etc., and (2) construction contracts for relatively minors on existing private non-residential buildings not requiring the approval and consent of the Building Authority under the Buildings Ordinance (Cap. 123), e.g. maintenance and repair of building services installation, shop renovation, etc.

⁹Construction work includes:
(a) Construction, installation, erection, replacement, extension, renewal, alteration, repair, restoration, maintenance, dismantling or demolition of, or the addition to, specified structures as set out in Schedule 2 to the Ordinance, which includes, for example slope, retaining wall, road, shore or harbour protection, supply of electricity, fuel or gas, telecommunication, water supply, drainage, sewage treatment and waste treatment facility;
(b) Work that is for completion of an integral or ancillary part of the above-mentioned buildings, structures or works, e.g. landscaping and utilities and services installations; and
(c) Preparatory work in relation to the above-mentioned works, e.g. site clearance, site investigation and provision of access roads.

¹⁰A construction contract is a public contract if a party to the contract is the owner and the owner (or one of the owners) is a specified entity. A specified entity refers to the Government or a body specified in Schedule 3 to the Ordinance or its subsidiary undertaking.

¹¹A construction contract is a main private contract if a party to the contract is the owner (e.g. a developer) and there is no owner being a specified entity.

Notes:

⁽¹⁾BA’s approval means the approval and consent of the Building Authority (BA) under the Buildings Ordinance (Cap. 123) for works to commence or be carried out.

⁽²⁾The non-residential parts includes shops, offices, hostels, student hostels, staff quarters, etc.