THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION
MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT.
REGULATORY OVERVIEW
OVERVIEW
The principal business of our Group is the provision of civil engineering consultancy services to
both the private and public sectors of Hong Kong, with a primary focus on structural engineering,
geotechnical engineering and AP consultancy services. As our Group’s business operations are based in
Hong Kong, we are principally subject to the relevant laws, rules and regulations of Hong Kong,
including the Buildings Ordinance, the Engineers Registration Ordinance and the Rules of Conduct of
HKIE. This section contains a brief summary of the principal laws, rules and regulations of Hong Kong
which are relevant to our Group’s business. As this is a summary, it does not contain detailed analysis of
the Hong Kong laws and regulations which are relevant to our Group’s business.
HONG KONG LAWS, RULES AND REGULATIONS RELATING TO THE PROVISION OF CIVIL
ENGINEERING CONSULTANCY SERVICES
Buildings Ordinance (Chapter 123 of the Laws of Hong Kong)
Under section 4(1) of the Buildings Ordinance, every person for whom building works or street
works (except minor works commenced under simplified requirements) are to be carried out shall
appoint:(a)
an AP as the co-ordinator of such building works or street works;
(b)
an RSE for the structural elements of such building works or street works if so required under
the Buildings Ordinance; and
(c)
an RGE for the geotechnical elements of such building works or street works if so required
under the Buildings Ordinance.
Our business involves the provision of structural and geotechnical engineering consultancy services
as well as the provision of AP consultancy services in connection with building works and street works,
which services are provided through our staff who are APs, RSEs and/or RGEs. Any AP, RSE or RGE so
appointed under the Buildings Ordinance has the following statutory duties:
(a)
supervise the carrying out of the building works or street works, as the case may be, in
accordance with the supervision plan;
(b)
notify the Building Authority of any contravention of the regulations which would result from
the carrying out of any work shown in any plan approved by the Building Authority in respect
of the building works or street works; and
(c)
comply generally with the Buildings Ordinance.
Under section 14(1) of the Buildings Ordinance, no person shall commence or carry out any
building works or street works without having obtained approval and consent from the Building
Authority. Under section 14A of the Buildings Ordinance, the Building Authority is not deemed to have
consented if the authorized person has not lodged a supervision plan for the building works or street
works. The person preparing a supervision plan must comply with the Technical Memorandum current at
the time of lodging the supervision plan.
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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION
MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT.
REGULATORY OVERVIEW
The Technical Memorandum supplements the provisions of the Buildings Ordinance governing the
supervision of building works and street works, and sets out the principles, requirements and operation of
supervision plans, including but not limited to the method statement of various types of building works
and street works, the types of safety precautionary and protective measures required to be undertaken,
supervision requirements for various types of building works and street works, the qualifications and
experience required for TCPs to be appointed for supervisory work under supervision plans and the
circumstances where minor deviations from a supervision plan are permitted.
While the Technical Memorandum sets out the principles, requirements and operation of
supervision plans, the Code of Practice for Site Supervision provides detailed guidance on the application
of the Technical Memorandum in the preparation of supervision plans and in the adoption of good
practices for site supervision, including but not limited to the procedures for establishing site supervision
requirements for various types of building works or street works, the deployment of TCPs and their
duties, the qualification and experience requirements for each grade of TCP; and the procedures for
dealing with non-conformities.
If an offence under the Buildings Ordinance is committed or matters justifying the taking of
disciplinary action arises, an AP, an RSE or an RGE will be subject to disciplinary proceedings or
prosecution under sections 7 and 40 of the Buildings Ordinance.
Disciplinary proceedings
Under section 7 of the Buildings Ordinance, certain matters in relation to an AP, an RSE or an RGE,
such as the AP, RSE or RGE being convicted by any court of an offence related to carrying out of his
professional duties, will lead to disciplinary actions ordered by the disciplinary board, which is a body
appointed by the Secretary for Development of the Government for the purpose of considering and taking
disciplinary actions under the Buildings Ordinance.
The disciplinary board is empowered under the Buildings Ordinance to take disciplinary actions
such as ordering that the name of the relevant AP, RSE or RGE be removed from one or more of the
relevant registers permanently or for such period as the disciplinary board thinks fit, or ordering such AP,
RSE or RGE be reprimanded or fined for up to HK$250,000.
Offences
In addition to disciplinary proceedings, an AP, an RSE or an RGE is also subject to prosecution
where an offence is committed under section 40 of the Buildings Ordinance, and some of such offences
are summarised below.
Under section 40 of the Buildings Ordinance, any person who knowingly contravenes section 14(1)
of the Buildings Ordinance in respect of building works (other than minor works) or street works shall be
guilty of an offence and shall be liable on conviction to a fine of HK$400,000 and to imprisonment for 2
years; and to a fine of HK$20,000 for each day during which it is proved to the satisfaction of the court
that the offence has continued.
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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION
MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT.
REGULATORY OVERVIEW
Under section 40(2A) of the Buildings Ordinance, the AP, RSE or RGE directly concerned with,
among others, building works or street works shall not:(a)
permit or authorize to be incorporated in or used in the carrying out of any such inspection or
works any materials which (i) are defective or do not comply with the provisions of the
Buildings Ordinance; or (ii) have not been mixed, prepared, applied, used, erected,
constructed, placed or fixed in the manner as required for such materials under the Buildings
Ordinance;
(b)
diverge or deviate in any material way from any work shown in a plan approved by the Building
Authority under the Buildings Ordinance;
(c)
diverge or deviate in any material way from any works shown in a plan relating to minor works
that is required to be submitted to the Building Authority under the simplified requirements; or
(d)
knowingly misrepresent a material fact in any plan, certificate, form, report, notice or other
document given to the Building Authority under the Buildings Ordinance.
Any contravention of the above provisions constitutes an offence and the AP, RSE or RGE is liable
on conviction in the case of building works (other than minor works) or street works, to a fine of
HK$1,000,000 and to imprisonment for 3 years.
In addition, under section 40(2AA) of the Buildings Ordinance, any AP, RSE or RGE who, in
contravention of section 4(3)(b) of the Buildings Ordinance, failed to notify the Building Authority of
any contravention of the regulations which would result from the carrying out of any work shown in any
plan approved by the Building Authority in respect of the building works or street works, shall be guilty
of an offence and shall be liable on conviction to a fine of HK$250,000, but a defence will be available to
the person charged under section 40(2AA) of the Buildings Ordinance if he proves to the satisfaction of
the court that he did not know, nor could reasonably have discovered, the contravention referred to in the
charge.
Under section 40(2B) of the Buildings Ordinance, it shall be an offence where any person (whether
or not an AP, an RSE or an RGE) directly concerned with any site formation works, piling works,
foundation works or other form of building works, carries out such works, or authorizes or permits such
works to be carried out, in such manner (a) that it causes injury to any person or damage to any property;
or (b) is likely to cause a risk of injury to any person or damage to any property.
Such person will be liable to a fine of up to HK$1,000,000 and an imprisonment for up to 3 years,
except that in the case of, among other things, site formation works, foundation works or other form of
building works that are minor works, such person will be liable to a fine of up to HK$500,000 and an
imprisonment for up to 18 months.
Engineers Registration Ordinance (Chapter 409 of the Laws of Hong Kong)
Some of our staffs are RPE registered under the register maintained by the Engineers Registration
Board, which is a body corporate established under section 3 of the Engineers Registration Ordinance.
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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION
MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT.
REGULATORY OVERVIEW
Disciplinary proceedings and offences
Under section 20(1) of the Engineers Registration Ordinance, an RPE commits a disciplinary
offence if he:
(a)
commits misconduct or neglect in any professional respect;
(b)
has been convicted of an offence under the Engineers Registration Ordinance;
(c)
has obtained registration under the Engineers Registration Ordinance by fraud or
misrepresentation;
(d)
was not at the time of his registration under the Engineers Registration Ordinance entitled to be
registered;
(e)
has held himself out to be an RPE in a specific discipline when he was not so registered;
(f)
without reasonable excuse, fails to attend before an inquiry committee, which is established
under section 21 of the Engineers Registration Ordinance (the “Inquiry Committee”), when
summoned either as a witness or as a person in respect of whom the Inquiry Committee is
meeting; or
(g)
has been convicted in Hong Kong or elsewhere of any offence which may bring the profession
into disrepute and sentenced to imprisonment, whether the sentence is suspended or not.
Where an Inquiry Committee finds that an RPE committed a disciplinary offence, the Inquiry
Committee may, among others, order that the name of such RPE be removed from such register for such
period as the Inquiry Committee may think fit; or reprimand the RPE in writing.
Under section 30 of the Engineers Registration Ordinance, a person commits an offence and is liable
to a fine of up to HK$50,000 and to imprisonment for 1 year, where, among others, he (a) fraudulently
obtains registration as an RPE for himself or any other person; (b) makes or causes to be made any
falsification in the register; (c) falsely takes or uses any name, initials, title, addition or description
implying that his name is entered in the register.
Professional standards
Some of our staffs are members of HKIE, which is a corporation established under section 3 of The
Hong Kong Institution of Engineers Ordinance (Chapter 1105 of the Laws of Hong Kong).
Members of HKIE are required to observe the Rules of Conduct published pursuant to the
constitution of HKIE (the “HKIE Constitution”) adopted under section 10 of The Hong Kong Institution
of Engineers Ordinance. The relevant rules of conduct are:(a)
Rule 1 – Responsibility to the Profession: a member of HKIE shall order his conduct so as to
uphold the dignity, standing and reputation of the profession.
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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION
MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT.
REGULATORY OVERVIEW
(b)
Rule 2 – Responsibility to Colleagues: a member of HKIE shall not maliciously or recklessly
injure nor attempt to injure whether directly or indirectly the professional reputation of another
engineer, and shall foster the mutual advancement of the profession.
(c)
Rule 3 – Responsibility to Employers or Clients: a member of HKIE shall discharge his duties
to his employer or client with integrity and in accordance with the highest standards of
business ethics.
(d)
Rule 4 – Responsibility to the Public: a member of HKIE in discharging his responsibilities to
his employer and the profession shall at all times be governed by the overriding interest of the
general public, in particular their environment, welfare, health and safety.
According to article 13(d) of the HKIE Constitution, if a member of any class shall be found by the
board of inquiry appointed pursuant to article 13(4) of the HKIE Constitution to have been guilty of
improper conduct, such as committing any breach of the HKIE Constitution, the council of the HKIE
may, by a resolution passed at a meeting of the HKIE Council, at which at least three-fourths of the
members thereof present and voting, vote in favour of the resolution, order him to be expelled from
HKIE, or that his membership be suspended for any period, or that he be reprimanded or admonished
and/or that he be removed from the register of members of HKIE.
EMPLOYMENT RELATED LAWS AND REGULATIONS
Employment Ordinance (Chapter 57 of the Laws of Hong Kong)
The Employment Ordinance provides for various employment-related benefits and entitlements to
employees. All employees covered by the Employment Ordinance, irrespective of their hours of work, are
entitled to basic protection under the Employment Ordinance including payment of wages (which is
defined under the Employment Ordinance to include, among others, remuneration and overtime pay),
restrictions on wages deductions and the granting of statutory holidays, etc. Employees who are
employed under a continuous contract are further entitled to such benefits as rest days, paid annual leave,
sickness allowance, severance payment and long service payment, etc.
Employees’ Compensation Ordinance (Chapter 282 of the Laws of Hong Kong)
The Employees’ Compensation Ordinance establishes a no-fault, non-contributory employee
compensation system for work injuries. The Employees’ Compensation Ordinance in general applies to
employees who are employed under a contract of service or apprenticeship. Employees who are injured
while working outside Hong Kong are also covered if they are employed in Hong Kong by local
employers. An employer is liable to pay compensation in respect of injuries sustained by his employees as
a result of an accident arising out of and in the course of employment; or in respect of occupational
diseases specified in the Employees’ Compensation Ordinance suffered by the employees.
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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION
MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT.
REGULATORY OVERVIEW
Mandatory Provident Fund Schemes Ordinance (Chapter 485 of the Laws of Hong Kong)
Mandatory Provident Fund (“MPF”) is an employment-based retirement protection system under
the Mandatory Provident Fund Schemes Ordinance. Except for exempt persons, employees (regular or
casual) and self-employed persons who are at least 18 but under 65 years of age and normally residing
and working in Hong Kong are required to join the MPF scheme. Under the current MPF scheme, the
employer and, where the monthly income is HK$7,100 or more, the employee are both required to each
contribute 5% of the employee’s monthly relevant income (subject to a statutory maximum cap of
contribution of HK$1,500 per month with effect from 1 June 2014) as mandatory contributions for and in
respect of the employee.
Minimum Wage Ordinance (Chapter 608 of the Laws of Hong Kong)
The Minimum Wage Ordinance provides the wages payable to an employee in respect of any wage
period, when averaged over the total number of hours worked in the wage period, should be no less than
the statutory minimum wage rate. The statutory minimum wage rate (being HK$32.5 per hour with effect
from 1 May 2015) applies to all employees being engaged under a contract of employment under the
Employment Ordinance, except those employed as domestic workers in, or in connection with, a
household and who dwell in that household free of charge, student interns and work experience students
during a period of exempt student employment.
Inland Revenue Ordinance (Chapter 112 of the Laws of Hong Kong)
Under section 52(2) of the Inland Revenue Ordinance, every person who is an employer shall, when
required to do so by notice in writing given by an assessor appointed under the Inland Revenue
Ordinance, furnish a return of all persons employed by him in receipt of remuneration in excess of a
minimum figure to be fixed by the assessor or any other person employed by him named by the assessor.
In addition, under section 52(4) of the Inland Revenue Ordinance, where any person who is an
employer commences to employ in Hong Kong an individual who is or is likely to be chargeable to tax
under Part 3 of the Inland Revenue Ordinance, or any married person, he shall give notice thereof in
writing to the Commissioner of Inland Revenue not later than 3 months after the date of commencement
of such employment. Under section 52(5) of the Inland Revenue Ordinance, where any person who is an
employer ceases or is about to cease to employ in Hong Kong an individual who is or is likely to be
chargeable to tax under Part 3 of the Inland Revenue Ordinance, or any married person, he shall give
notice thereof in writing to the Commissioner of Inland Revenue not later than 1 month before such
individual ceases to be employed in Hong Kong.
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