Smart Tender – Building Rehabilitation Facilitating Services

Application Notes

Effective from Jun 2017 Page 1 of 6

Smart Tender - Building Rehabilitation Facilitating Services (“the Services”) is a fee-charging service, aiming to provide technical assistance and professional advice to the eligible Owners’ Organizations (“the Applicant”). The Applicant can procure the Registered General Building Contractor (“RGBC”) by using the electronic tendering platform for the building maintenance works of common areas.

1 Application

Open for application.

2 Eligibility Criteria

Multiple owned private residential or composite building (residential and commercial), but not including buildings of 3-storey or below and New Territories Exempted Houses.

3 Other Requirements

3.1 Owners’ Organizations must already be formed in the subject building / estate (i.e. Owners’ Committee or the Incorporated Owners either in accordance with the provisions of the Deed of Mutual Covenant (DMC) or Building Management Ordinance (BMO, Cap 344) at the time of application. The Applicant MUST be capable of organizing and managing the building rehabilitation works and to processing the associated documentation independently. (For those buildings / estates with a DMC manager but without the aforesaid Owners’ Organization will be considered on case by case basis);

3.2 The Authorized Person (AP) / Registered Inspector (RI) for carrying out inspections and supervising the building rehabilitation works must NOT be appointed at the time of application. The successful Applicant

shall procure the AP / RI by open tender in compliance with the relevant statutory requirements. (Note 1)

3.3 The Services targets to assist the Applicant in carrying out of one or more of the following scope of building rehabilitation works in common areas:

(a) Building Structure and Safety; (b) Sanitation and Hygiene;

(c) Water Seepage of Roof/ Common Areas; (d) Fire Safety.

The Services is NOT applicable to particular scope of works, such as:

(i) Repairing of slope/ earth retaining structure; (ii) Replacement or repairing of recreational facilities;

(iii) Upgrading or repairing of electrical installations or electrical system; and

(iv) Replacement or upgrading of elevators

3.4 The Services does not offer partial service. The following are some examples.

3.4.1 The Applicant has already appointed the AP / RI for carrying out inspections and supervising the building rehabilitation works at the time of application for the Services; and/or

3.4.2 Building rehabilitation coordination works has proceeded to a stage of procurement of RGBC, and want to make use of the electronic tendering platform of the Services only.

Note 1: If the Applicant has already appointed a RI to conduct the prescribed inspection as stipulated in the Statutory Notice (SN) of Mandatory Building Inspection Scheme (MBIS) from the Buildings Department (BD), and the Applicant intends to appoint the same RI for supervising the prescribed repair. URA will consider to accept the application provided that the Applicant is able to submit all relevant documents to prove that such procurement is carried out by open tender and in compliance with the relevant statutory requirements.

(To be continued)

Effective from Jun 2017 Page 2 of 6

4 Joint Application for Multiple Owners’ Organizations (if applicable)

4.1 Joint application includes the following situations:

4.1.1 A building consisting of multiple Owners’ Organizations (OOs)intends to carry out building rehabilitation works jointly; or

4.1.2 More than one building in the same estate consisting of multiple OOs intends to carry out building rehabilitation works jointly.

4.2 Each OO under a joint application must pass resolutions of applying the Services in their respective general meetings. Please refer to Section 5.5 for the requirements of agenda.

4.3 Each OO under a joint application must procure the AP / RI and RGBC by open tenders and appoint the same AP/RI and RGBC for the building rehabilitation works of common areas.

5 Application Submission and Supporting Documents

For the eligible Applicant, the application form shall be completed in CAPITAL LETTERS, and signed by the authorized representatives. The application form shall be stamped by all concerned OOs and submitted together with the copy of the following supporting documents:

5.1 All non-complied statutory order(s)/ SN(s) of MBIS/ advisory letter(s) for the common areas of the building /estate under the application issued by the BD or other government department(s)

5.2 The Deed of Mutual Covenant (DMC) for all buildings /estate under the application;

5.3 The Occupation Permit (OP) for all buildings / estate under the application;

5.4 The certificate of registration for all of the Owners’ Organizations under the application, such as the Certificate of Registration of a corporation; and

5.5 The Applicant must pass the resolution of the following agendas in the general meeting before submitting

the application, and submit the notice and minutes of that general meeting. (Note 2) :

5.5.1 To resolve on the application of Smart Tender - Building Rehabilitation Facilitating Services of Urban Renewal Authority with a charge of HK$ [XX,XXX.00 (Please refer to Section 7.3.1 for the exact

service charge) ]. This service charge includes the appointment of a designated company for being the Independent Consultant under Smart Tender - Building Rehabilitation Facilitating Services, and resolve a authorized representative [The name of the nominated committee member of the

Owners’ Organization] represents [Name of the Building or Estate] to sign the Services Agreement with URA AND the Tripartite Agreement with the URA and the Independent Consultant. And, to resolve on the arrangement that URA acts as an agent for [ Building or Estate Name ] to arrange for the appointment of the following service providers or companies for the required services under Smart Tender:

a) A designated service provider to provide the electronic tendering platform for the procurement of RGBC;

b) An Independent Professional or a Certified Public Accountant (CPA) to administrate and supervise the tender opening and assist in the tender opening process of RGBC.

5.5.2 In addition to the above-mentioned Section 5.5.1, the following agenda is applicable to joint application. Each OO under a joint application must pass the resolutions in their respective general meetings: to resolve on carrying out of building rehabilitation works and applying the Services jointly, each OO under the joint application must procure the AP / RI and RGBC by open tender and appoint the same AP/RI and RGBC for carrying out of the building rehabilitation works (Scope of works can be varied due to individual building condition).

Note 2: The agenda for passing in the general meeting as stipulated in Section 5.5.1 may subject to variation depending on the particular situation for the building blocks under the application.

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Effective from Jun 2017 Page 3 of 6

5.6 Other supporting documents to be submitted:

5.6.1 Applicable to building / estate with Incorporated Owners

To comply with provision of the BMO, the Applicant passes the resolution in the general meeting as stated in Section 5.5. and submits the Notice and Minutes of that meeting.

5.6.2 Applicable to building / estate without Incorporated Owners but with other formed OO

(a) In accordance with the provisions of DMC, passes the resolution in the general meeting as stated in Section 5.5. and submits the Notice and Minutes of that meeting;

(b) The authorized representative for the application must be a registered owner of the building / estate. (A search record from the Land Registry should be submitted as a proof) ;

(c) If the authorized representative is a registered owner in the name of company, such company must appoint a director as its representative and submit the relevant authorization letter. The application form shall be stamped by the company and with the name of the signatory clearly stated;

(d) If the authorized representative is a limited company, the copy of the following documents shall also be submitted:

1. Memorandum and Articles of Association and the Business Registration Certificate of the Company;

2. Up-to-date list of directors as registered in Company Registry, such as the latest annual return;

3. The relevant documents recording the resolution by the Board of Directors to authorize the director as the authorized representative; and

4. Other information or documents as requested by the URA.

5.7 The duly completed and signed Application Form (Part 1 and Part 2) along with all of the required supporting documents mentioned above to be submitted by hand or by post to:

Urban Renewal Authority,

Unit 1001, 10/F, Tower 2, Cheung Sha Wan Plaza,

833 Cheung Sha Wan Road, Kowloon

5.8 For joint application, each of the OO shall:

5.8.1 fill both Part 1 (Information of Building / Estate for Application) and Part 2 (Detailed Information of Individual Building)

5.8.2 attach all of the required supporting documents in the application.

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Effective from Jun 2017 Page 4 of 6

6 Approval Procedures and requirements

6.1 URA will issue a “Notification Letter” (NL) to the “Successful Applicant”, and request the Successful Applicant to sign the Service Agreement (SA) with URA, and a Tripartite Agreement (TA) with URA and the Consultant to define the rights and obligations of all parties and scope of services under Smart Tender.

6.2 The Successful Applicant must settle the service charge by stage after signing the SA and TA. The services for that stage shall be proceeded after the respective service charge is settled;

6.3 The Successful Applicant shall comply with the statutory guidelines and requirements for the procurement of AP / RI and the RGBC. The Successful Applicant shall request its employed AP / RI to adhere to the requirements stipulated in the “DIY tool-kits” (Please refer to Section 7.1.1) and advice from the URA.

If it is evident that the aforesaid has been breached and/or that the Successful Applicant fails to meet the milestone stipulated in the NL without acceptable justification or intention to taking remedial action, the URA will consider to terminate the Services but no refund of paid service fee will be arranged;

6.4 The Successful Applicant is obliged to pass the resolution on selection of RGBC in the general meeting within the prescribed timeframe in the NL (18 months in general); and

6.5 The URA reserves the right to decline/ disapprove any application for the Services at any stage, without any liability or obligation to disclose the reason to the applicant and any third party. The URA reserves the right to have the final decision on the interpretation of all application articles and other requirements for the provisions of the Services.

7 Scope of Services and Service Charge

7.1 Scope of Services

The Services provided by the URA include:

7.1.1 To provide “DIY tool-kits” to successful applicant – It includes standard templates for the procurement of the AP / RI and RGBC, recommendations and the compulsory terms and conditions, along with other relevant guidelines and points to note in organizing and managing the building rehabilitation works;

7.1.2 To arrange the Independent Professional (IP) for the Successful Applicant. The IP will provide professional and technical advice on building rehabilitation works in different stages of the Services as stipulated in the SA and TA. The IP also provides a cost estimate to the related work items;

7.1.3 To arrange the IP for providing comments on the Condition Survey Report, Tender Document, Cost Estimate and Tender Analysis Report prepared by the AP / RI.

7.1.4 To act as an agent of the Applicant to facilitate the use of electronic tendering platform for the procurement of RGBC; and

7.1.5 To act as an agent of the Applicant to appoint the Certified Public Accountant (CPA) (or Independent Professional) for the administration and supervision of the tender opening process.

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Effective from Jun 2017 Page 5 of 6

7.2 Workflow of the Services

The workflow of the Services is as follows:

Procedures undertaken by the Successful Applicant

Workflow of the Services

Signing of Service Agreement and Tripartite Agreement

The IP conducts site inspection for the common areas of building /estate under the application and provide ballpark estimate

Procurement and Appointment of AP / RI

The IP provides comments on the Condition Survey Report, the Tender Document and cost estimate prepared by the AP / RI and

provides a pre-tender cost estimate

Procurement of RGBC Using the electronic tendering platform

for the procurement of RGBC

Select RGBC IP comments on the Tender Analysis Report prepared by the AP / RI

Completion of the Services

7.3 Service Charge

7.3.1 The Services is a fee-charging service, aiming to recover the operating costs. The service charge please see attached appendix.

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Effective from Jun 2017 Page 6 of 6

8 Important Notes

8.1 The URA’s Services is (i) to arrange Independent Consultant, (ii) acting as an agent of the Successful Applicant to appoint electronic tendering platform service provider and Certified Public Accountant (or an Independent Professional) and (iii) to provide technical assistance and professional advice. All these services providers shall not intervene or substitute the role and responsibilities of AP / RI appointed by the Successful Applicant.

8.2 The URA shall not intervene or interfere with the Applicant in the decision-making of appointment of AP / RI and RGBC. The owners can select the most appropriate tenderer according to their own preference. The owners should report to the relevant government department(s) or dedicated agency(ies) if they identify any suspected criminal offence or unfair incident.

8.3 The URA reserves the right to amend the eligibility criteria and any detail of the Services without giving prior notice. The latest information of the Services will be uploaded to the websites of URA (www.ura.org.hk) and the "Building Rehab Info Net" (www.buildingrehab.org.hk).

8.4 This Application Notes does not constitute to any commitment or obligation by the URA. The gist of information contained in this Application Notes does not provide the complete/ comprehensive details of the Services. The terms and conditions as stipulated in the Service Agreement and the Tripartite Agreement described in Section 6.1 shall prevail.

-The End-

Version: 13 June 2017

Service Fee of the

"Smart Tender - Building Rehabilitation Facilitating Services”

Following the revision of the average annual rateable value of domestic units in buildings joining Smart Tender, which is used for determining the fee levels, effective from 13 June 2017, the revised service fee of Smart Tender is tabulated below:

Average annual rateable value of the domestic units of the Building located at

Urban and NT areas (1)

Total number of domestic and non-domestic units

of the building (Except Car park Space)

Service Fee

(HK$)

Tier 1

At or below $162,000 (Urban)

or At or below $124,000

(N.T.)

≤ 400 units $25,000

401 – 800 units $45,000

801 – 1200 units $60,000

> 1200 units $75,000

Tier 2

In between $162,000 & $300,000 (Urban)

or In between $124,000 &

$160,000 (N.T.)

≤ 400 units $50,000

401 – 800 units $100,000

801 – 1200 units $130,000

> 1200 units $160,000

Tier 3

Over $300,000 (Urban) or

Over $160,000 (N.T.)

≤ 400 units $50,000

401 – 800 units $100,000

801 – 1200 units $130,000

> 1200 units $160,000

Note: 1.Urban – Hong Kong Island, Kowloon, Sha Tin, Kwai Tsing, & Tsuen Wan;

N.T. – New Territories excluding Sha Tin, Kwai Tsing, & Tsuen Wan;

2.The number of units is the summation of the domestic and non-domestic units

(excluding car park spaces) stated either in the OP(s) or DMC(s) for the subject building

/estate under the application, whichever is higher;

3.If the number of units can neither be precisely derived from the OP nor the DMC,

records at the Land Registry provided by the applicant will form a basis for

determination of number of units; and

4.The actual service fee shall be confirmed in the Service Agreement.

Appendix