New building management bill sets stricter procurement rules for OCs

The bill will come into operation on 13 July next year.

The Hong Kong government approved the Legislative Council’s passage of an amendment bill to refine transparency and accountability in the operation of owners’ corporations (OCs).

The Building Management (Amendment) Bill 2023, scheduled to be published in the Gazette on 12 July and to come into operation on 13 July next year, aims to bolster compliance with the Building Management Ordinance whilst introducing stricter guidelines for procurement activities related to large-scale building maintenance.

Under the new provisions, procurement for maintenance projects exceeding an average cost of $30,000 per building flat will require a resolution passed with at least 5% of owners or 100 owners present in person.

The bill also introduces measures allowing authorised individuals to represent corporate flat owners at OC general meetings and similar events, alongside adjustments to financial reporting requirements and meeting procedures.

In a bid to reinforce compliance, the legislation proposes criminal penalties for failure to maintain essential building management documents, alongside miscellaneous amendments.

The government emphasised that these reforms consolidate input from stakeholders gathered over several years and through public consultations. It pledged to continue addressing broader building management concerns in ongoing collaboration with stakeholders.