Bid-rigging trial over HK$700 million in renovation work set for 2028 at earliest

Eight companies and 12 individuals suspected of rigging bids for at least 11 building maintenance projects in Hong Kong, including at Wang Fuk Court where 168 people died in a fire last year, are expected to face a month-long trial no earlier than 2028.
The Competition Tribunal held its first hearing on Wednesday for the companies and individuals accused by the Competition Commission of acting as a bid-rigging syndicate for building maintenance projects worth nearly HK$700 million (US$89.4 million) between April 2022 and September 2023.
The commission took legal action against the suspected syndicate in March. It was allegedly led by merchant Cheung Kwing-kuen, who controlled Smart Goal Construction Engineering, Lermond Development Group and Dream Building Construction Engineering.
A court document earlier filed by the commission stated: “Cheung and/or Dream Building devised and deployed this systematic scheme with an objective to secure a significant market share in the industry.”
Cheung, 42, allegedly wrote in a work message that he was “confident in challenging the 25 per cent market share threshold”.
Cheung, his companies, his associates and contractors linked to him were listed as the respondents in the proceedings.

Mr Justice Jonathan Russell Harris, presiding as the tribunal’s president, heard on Wednesday that the parties needed more time to respond to the commission’s allegations.
One of the allegations involved Wang Fuk Court in Tai Po. The commission accused Dream Building of conspiring with Cheung Lee Construction, Ngai Lam Building Construction and Wang Yat Construction to exchange information about their bids on the estate’s renovation project.
Bid-rigging refers to two or more competitors agreeing they will not compete with each other for tenders, allowing one to “win” the tender.
The estate began inviting tenders in May 2023. One of Cheung’s companies submitted a bid that was lower than its competitors’, but he did not win the tender.
The contractor that eventually won the bid is not involved in the current proceedings.
Cheung and his associates were also accused of price-fixing, bid-rigging and market allocation in 10 other projects across the city, including at Tsui Lam Estate in Tseung Kwan O, Victory Garden in Kwai Chung and Alhambra Building in Yau Ma Tei.
The commission is asking the tribunal to declare that the respondents contravened the First Conduct Rule under the Competition Ordinance by making an agreement and engaging in a concerted practice to prevent, restrict or distort competition.
The respondents could face a pecuniary penalty if the tribunal finds that they engaged in anti-competitive conduct.
The trial was expected to last at least 30 days and commence sometime between 2028 and 2029, the parties told the judge.
He ordered them to return on March 17 next year for a second hearing.