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Hong Kong Watchdog Targets Alleged Bid-Rigging Network in Major Building Tender Probe

By  |  January 29, 2026

Hong Kong’s competition regulator has launched a sweeping enforcement operation against a newly uncovered syndicate suspected of manipulating tenders for building maintenance projects, with contracts linked to the case valued at about HK$700 million (US$89.7 million). The crackdown comes as authorities continue to face public pressure to clean up the construction sector after a fatal fire in Tai Po last November that raised fresh concerns about industry practices.

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    According to a statement from the Competition Commission, the two-day operation, codenamed “Hunter,” marked its first major enforcement action since the deadly blaze and was aimed at addressing long-standing allegations of collusion and malpractice in construction-related tenders. Investigators carried out raids on Wednesday and Thursday at 27 locations across the city, including the offices of 14 companies made up of contractors and a consultancy firm, as well as several private residences.

    The watchdog said per a statement that the contracts under review involved renovation and maintenance works across 17 estates and buildings, collectively estimated to be worth around HK$700 million. Officials believe the projects were affected by a coordinated scheme designed to give certain companies an unfair advantage during the tendering process.

    According to a statement issued by the commission, investigators have identified a project contractor as the suspected leader of the syndicate. This individual is believed to have worked closely with a consultancy firm and other contractors to influence tender outcomes through a range of deceptive tactics. One of the methods allegedly involved gaining access to confidential cost estimates that were meant to be safeguarded during the bidding process. “During the tendering of some of the targeted renovation projects, the mastermind of the syndicate managed to obtain the estimation of the project cost, which was supposed to be confidential, from the consultancy firm,” the statement read.

    Per a statement from the regulator, the syndicate then arranged for certain companies to submit bids that were intentionally priced higher than the intended winner’s offer. These inflated proposals, often known in the industry as “pig quotes,” were used to give the appearance of genuine competition while ensuring the chosen contractor secured the contract. In other cases, the companies involved allegedly rotated their roles, taking turns to act as cover bidders to support whichever firm had been selected to win a particular tender. “In other tenders, the contractors took turns to act as ‘cover bidders’ to support the designated winner of the tender,” the watchdog said.

    The Competition Commission said such behavior could amount to bid-rigging, price fixing, and the improper sharing of sensitive commercial information, all of which violate the First Conduct Rule under Hong Kong’s Competition Ordinance. According to a statement, the regulator will continue to analyze evidence gathered during the raids as it prepares potential legal action against those involved.

    The investigation underscores the authorities’ renewed determination to tackle entrenched collusion in the building and maintenance sector, an issue that has drawn heightened scrutiny since last year’s fatal fire highlighted broader concerns about safety, oversight, and the integrity of construction projects in Hong Kong.

    Source: SCMP