Procurement under BMO
Owners’ Corporation procurement of electrical works: tendering for building property management regulations
The following is codified in accordance with chapter X of the architectural property management regulations (chap. 344) of the General Administration of Civil Affairs. Owners’ Corporation is required to comply with the Code of Conduct on Procurement of Supply, Goods and Services (in force since 13 July 2002, when making procurement and tendering).
Category 1 large procurement
The procurement value exceeds (or is likely to exceed) $200,000 and is not covered by category 2 large purchases or major maintenance works.
Category 2 bulk procurement
The value of the procurement exceeds (or is likely to exceed) 20 per cent of the average annual cost of building over the last three fiscal years (the caveat) rather than the procurement for major maintenance works.
Procurement of major maintenance works
The purpose of the procurement is primarily to repair, replace, maintain or improve the public utility of buildings, while the value of the procurement exceeds or is likely to exceed $30,000 in addition to the total number of building units (generally no parking spaces); and does not include clean, security or property management services.
Common provisions for three types of procurement
- Be consistent with the Code of Practice andPurchase commitmentsAcquisition of goods or services
- The text of the solicitation must clearly specify the nature of the goods or services, and be displayed in the eyes
- No proposal submitted after the date of entry shall be admitted
- Compliance with the declaration of interests in schedule 6B
Number of vendors invited to bid
- Purchase value exceeds $10,000 but not more than $200,000: to a minimum3Award of tenders by potential suppliers
- Purchase value exceeds $200,000: to a minimum5Award of tenders by potential suppliers
RESOLUTION ADOPTED BY THE GENERAL ASSEMBLY
- Procurement for large volumes of procurement or major maintenance works: by Owners’ Corporation at the main assemblyOver half of the votesAdoption of a resolution deciding whether to adopt a proposal
- Procurement for major maintenance works: resolutions are also required5 per cent or 100 ownersFirst-hand voting threshold (with less) and meeting procedures in schedule 6C
Renewal of immunity of current vendors
In the case of bulk purchases in categories 1 and 2, the same type of service was provided to the suppliers who were being hired by Owners’ Corporation at that time, and the owner ' s General Assembly resolution decided not to procure and specify provisions by tender, exempted from the request for proposals, but were subject to a declaration of interest.No exemptionThe tender is required.
declaration of interest and preservation of documentation
- The participants in the Commission and the head of the procurement authority are required to make a declaration on the stakes and customs of the tenders.
- Participants in the Board who make a declaration of interest shall not participate in the evaluation or negotiation of proposals
- Procurement documents (bidding documents, contracts, accounts, invoices, etc.) shall be kept for at least six years
The contract should not be separated
Owners’ Corporation should not disaggregate a procurement into a smaller contract of several amounts to avoid statutory procurement requirements, and failure to comply with the necessary requirements may affect the validity of the procurement contract, and the contracting party may be subject to individual legal responsibility.
Property Management Corporation licensing system
Property management, which provides more than one category of property management services to the public property industry under the Property Management Services Ordinance (Cap. 626), is implemented as from 1 August 2002; the Property Management Authority also makes good operational guidelines for licensee customers to procure and prevent perimeters.
The above information is intended solely for general reference and is not a legal opinion. Owners’ Corporation shall be subject to the latest guidelines of the General Administration of Civil Affairs, the Code of Practice and the original texts of the regulations, and, if necessary, independent legal advice.