HONG KONG HOUSING AUTHORITY

The Hong Kong Housing Authority invites tenders for the tenancy/tenancies of the premises stated in the Special Conditions of Tender.

2. (a) Tenderers must state the monthly tendered rent they are prepared to offer for a 3-year tenancy of the shop.

(b) Tenderers should note that under the Tenancy Agreement, the tenant is required to pay rates and if the premises are not yet assessed to rates on the commencement of the tenancy the tenant is required to pay to the Housing Authority monthly in advance provisional rates based on an estimate by the Housing Authority as to the likely amount of rates that would be assessed and demanded.

4. Tenders from persons who or whose family members already holding resited hawker stalls on any public housing estates, or former U.C./R.S.D. hawker licences/hawker stalls will not be considered unless they give up such resited hawker stalls and former U.C./R.S.D. hawker licences/hawker stalls in the event of their tenders being successful.

5. Tenders will only be accepted from persons who will occupy the premises for their own use and no assignment, sub-letting or parting with the possession of the premises or any part thereof will be permitted.

6. Tenderers should note that the granting of a commercial tenancy does not confer upon the tenant any exclusive right to any particular trade on the estate and that the Authority reserves the right to let other premises on the estate in whatever manner for the same trade according to the needs of the estate as assessed by the Authority. Change of user of the premises during the term of the tenancy shall not be permitted.

7. A minimum rent is or will be fixed solely by the Housing Authority and may be disclosed only to the highest bidder whose offer does not meet the expected minimum rent. Such highest bidder alone will then be invited to offer the minimum rent. The Housing Authority does not warrant that the highest or any tender (whether its offer exceed the minimum rent or not) will be accepted.

8. All tenders should be submitted under the seal of the tenderer. The tenderers should sign the tender under their hand and seal. Tenderers are required to state the tendered rent they are prepared to offer for the tenancy and to enclose in the Form of Tender a cheque or a cashier order for the exact amount equivalent to three months’ tendered rent or $200,000, whichever is the less, made payable to HONG KONG HOUSING AUTHORITY. Any tender form and the cheque or cashier order not made in the prescribed manner will be invalidated. All cheques and cashier orders may be cashed by the Authority.

10. Once a tender has been lodged it must remain open for 180 days if retained in a shortlist for consideration (see Clause 12). Tenderers must deposit with the Authority as a pledge of the bona fides of their tenders a tender deposit equivalent to 3 months’ tendered rent or $200,000 whichever is the less and the Authority shall be entitled to forfeit the entire deposit or part thereof in the scale as detailed below by way of liquidated damages and not as a penalty upon a tenderer withdrawing his tender from the shortlist within the said 180 day period. In the event that the Authority fails to accept a tender from the shortlist within the 180 day period, a tenderer whose tender is in the shortlist shall be entitled upon giving notice in writing to the Authority within 7 days immediately following the expiry of the 180 day period to withdraw his tender where upon the Authority shall repay to the tenderer the amount of the deposit lodged with the Authority but without interest, costs, expenses, compensation or damages whatsoever. In the absence of such written notice the Authority shall be entitled to regard the tender as remaining open as if the 180 day period has not lapsed whereby the tenderer will continue to be bound by the terms of the General and Special Conditions of Tender including the liquidated damages clause referred above. The scale of forfeiture by way of liquidated damages is as follows : -

Amount of Tender Deposit		Amount to be forfeited
(a)	Below $10,000	Full amount of deposit
(b)	$10,000 to $40,000	$10,000 or 50% of deposit whichever is the greater
(c)	$40,000 up to a maximum of $200,000	$20,000 or 25% of deposit whichever is the greater

11. Prospective tenderers are reminded that if manipulation of the Authority’s tender system is discovered and such has been proved to the satisfaction of the Director of Housing, then the said Director can at his discretion reject the tenders from such tenderers and forfeit their entire deposit or part thereof as prescribed in Clause 10 above to the Authority as liquidated damages. The decision by the Director of Housing as to whether the tender system has been manipulated and as to the tenderers involved in the manipulation is final.

12. A limited number of tenders will be retained as a shortlist for consideration, and cheques or cashier orders for these may be retained until a selection of the final tender has been made. Other cheques and cashier orders will be returned within two weeks or three after the tender closing date, but those on the shortlist may be retained for a longer period. All cheques and cashier orders of the unsuccessful tenderers will be returned by registered post to their last known address in Hong Kong, at their own risk, or if banked on receipt, the tender deposit of three months’ tendered rent or $200,000, whichever is applicable, will be refunded without interest. Tender results will be published in the Hong Kong Government Gazette in due course.

14. On signing the Tenancy Agreement, in addition to the payment of the tendered rent for the first month, the successful tenderer shall be required to pay a deposit equivalent to three months’ tendered rent to the Authority. This deposit shall be refunded on termination of the tenancy provided that there are no outstanding rent or other charges against the tenant’s account. The deposit of three months’ tendered rent or $200,000 whichever is applicable, held as a pledge of bona fides of the tender, may in lieu of refund be offset as part payment of the said first month’s rent and deposit of three months’ tendered rent to the Authority with any deficiency to be paid up by the successful tenderer.

15. The successful tenderer shall be responsible for the fitting out of the premises and he shall accept the premises in the state and condition in which they are at the date when possession is given. Plans for the intended conversion must be approved in writing by the Director of Housing and no conversion work shall be started until such written approval is obtained. The successful tenderer shall comply with all requirements statutory or otherwise imposed by Food and Environment Hygiene Department, Fire Services Department, Labour Department or any other department or authority concerning any conversion work or the operation of the business.

16. The tenant will not be allowed to assign the tenancy. Upon termination of the tenancy, he will be required to give vacant possession of the premises to the Authority unconditionally.

NO CHARGE IS MADE ON THE SUPPLY OF THE TENDER FORM AND FOR THE PROCESSING OF THE TENDERS. ANY PERSON PURPORTING TO OFFER ASSISTANCE IN RESPECT OF THIS TENDER IN RETURN FOR A REWARD SHOULD BE REPORTED IMMEDIATELY TO THE AUTHORITY CONCERNED.

ANY TENDERER WHO ATTEMPTS TO INFLUENCE CONSIDERATION OF HIS OR HER TENDER BY APPROACHING ANY MEMBER OF THE STAFF OF THE DEPARTMENT OR BY THE USE OF ANY OTHER IMPROPER MEANS SHALL RENDER HIS OR HER TENDER INVALID.

TENDERERS ARE WARNED THAT OFFERING OR GIVING ANY GRATUITY, MONEY OR GIFT AS AN INDUCEMENT TO ANY EMPLOYEE OF THE HOUSING DEPARTMENT IN RELATION TO THE TENDER CONSTITUTES AN OFFENCE UNDER THE PREVENTION OF BRIBERY ORDINANCE AND SUCH CASES WILL BE REPORTED TO THE ICAC.

HOUSING DEPARTMENT PERFORMANCE PLEDGE : NOTICE WILL BE GIVEN TO SHORTLISTED/UNSUCCESSFUL TENDERERS WITHIN THREE WEEKS AFTER THE CLOSING DATE OF OPEN TENDER.