Proposed requirement for bank guarantees in land tender

"Members had some initial discussions on the proposals of requiring tenderers in all land sale tenders to procure a bank guarantee or a parent company guarantee in respect of the balance of the tender price, and requiring prospective tenderers to provide evidence of their ability to discharge their obligations under the Conditions of Sale," said Professor Yeung Yue-man, Chairman of the Land and Building Advisory Committee (LBAC) today (May 30).

"Some members have expressed concern about the possible impact of the above proposals on prospective tenderers, particularly the smaller developers. Some have suggested the Lands Department may look into the present deposit requirement to see if there is any room for improvement.

"To take the matter forward, the Lands Department will conduct further consultation on the above proposals," Professor Yeung added.

At the same meeting, the Committee was briefed on the progress of work of the Working Group on Built Quality under the Buildings Department.

"Members in general welcome the work of the Working Group to enhance the supervision and quality of foundation works and ground investigation works by setting out more clearly the respective responsibilities of Authorized Person (AP), Registered Structural Engineer (RSE), Registered General Building Contractor (RGBC) and Registered Specialist Contractor (RSC) in these works," Professor Yeung said.

The Working Group has also recommended that ground investigation work be carried out by registered specialist contractors. The professional institutions are supportive of the measures.

The Working Group on Built Quality was formed in December 1999 to work out and recommend measures to improve the supervision and testing of foundation works for private buildings.

End/Tuesday, May 30, 2000