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2017.10.03URA launches concession scheme for Smart Tender

The Urban Renewal Authority (URA) today (Tuesday) launched a concession scheme for the "Smart Tender" Building Rehabilitation Facilitating Services (Smart Tender) in response to the Government's 2017-18 Budget initiative to earmark $300 million to allow property owners to join Smart Tender at a concessionary rate. 

A Memorandum of Understanding (MOU) was signed today between the Government and URA which stipulated the establishment of a concession fund and the implementation framework of the concession scheme for Smart Tender.  

The URA introduced the Smart Tender in May 2016 to provide professional and technical assistance to property owners of multi-owned private residential or composite buildings with more than three storeys, with an aim to encourage more owners to carry out building rehabilitation works, as well as reduce the risk of tender rigging faced by owners at works procurement stage. 

The Smart Tender services include providing a do-it-yourself tool kit, arranging an independent professional to provide third-party's views on the tender and the estimated cost of works, and providing an electronic tendering platform for the tendering process.  Each participating owners' organisation (OO) of buildings joining the Smart Tender is required to pay a fee to cover the expenses incurred by the URA for the services.  The prevailing fees, which range from $25,000 to $160,000 per application, are determined according to the average annual ratable value (RV) of domestic units in the buildings and the total number of domestic and non-domestic units in the buildings. 

The concessionary fees payable by the participating OOs under the concession scheme will be equivalent to 5% to 50% of the prevailing fees.  Details of the concessionary fees are summarised in the Annex. 

Speaking after the signing of the MOU, Chairman of the URA, Mr Victor So Hing-woh, said: "By facilitating and promoting building rehabilitation, we assist property owners to improve their building conditions with a view to prolonging the lifespan of buildings, thus slowing down the pace of urban decay.  We are encouraged that Smart Tender has received positive feedback from property owners since it was launched about a year ago.  With the introduction of the concessionary fees, it is hoped that more property owners will be benefitted from the facilitating services of Smart Tender to carry out proper repair and maintenance for their buildings." 

Also attending the signing ceremony, the Secretary for Development, Mr Michael Wong, said: "The Government recognises that not all property owners have related experience or technical knowledge in carrying out rehabilitation works for their buildings.  The Smart Tender scheme will provide the requisite professional and technical support to them.  With the new initiative, the fee for joining the scheme will substantially reduce, encouraging more owners to use Smart Tender and take good care of their buildings." 

A total of 107 valid applications for Smart Tender have been received, of which 59 have been approved involving around 26,000 residential units.  The URA Board has approved that OOs which joined Smart Tender at prevailing fees before the effective date of the concession scheme will also enjoy the concessionary fees. 

Application forms and guidelines of Smart Tender can be downloaded from the website of Building Rehab Info Net (http://www.buildingrehab.org.hk).  Members of the public can call the Hotline at 3188 1188 for assistance and enquiries.


Summary of Prevailing Fee and Concessionary Fee of Smart Tender

Average annual RV of domestic units in participating buildings (1) Total number of domestic and non-domestic units in the building Prevailing Fee

Concessionary Fee
(5% to 50% of Prevailing Fee)

Tier 1
<$162,001 (Urban); or <$124,001 (N.T.) <400 units $25,000 $1,250
401 - 800 units $45,000 $2,250
801 - 1,200 units $60,000 $3,000
>1,201 units $75,000 $3,750
Tier 2

$162,001 - $300,000 (Urban); or
$124,001 - $160,000 (N.T.)

<400 units $50,000 $10,000
401 - 800 units $100,000 $20,000
801 - 1,200 units $130,000 $26,000
>1,201 units $160,000 $32,000
Tier 3
>$300,000 (Urban); or >$160,000 (N.T.) <400 units $50,000 $25,000
401 - 800 units $100,000 $50,000
801 - 1,200 units $130,000 $65,000
>1,201 units $160,000 $80,000

Note (1)   Urban - Hong Kong Island, Kowloon, Sha Tin, Kwai Tsing and Tsuen Wan;
              N.T. - New Territories excluding Sha Tin, Kwai Tsing and Tsuen Wan.


(ENDS)

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    Secretary for Development, Mr Michael Wong (second left), and Chairman of URA, Mr Victor So Hing-woh (second right), sign a Memorandum of Understanding for the concession scheme of Smart Tender. The signing ceremony is witnessed by the Managing Director of URA, Ir Wai Chi-sing (right), and Deputy Secretary for Development (Planning and Lands), Mr Maurice Loo (left).
 
Last updated at: 2017.10.03