Hong Kong Ordinances

CONSTRUCTION INDUSTRY COUNCIL ORDINANCE - SECT 52

Value of construction operations

PART 6

VALUE OF CONSTRUCTION OPERATIONS, ETC.

(1) In relation to any construction operations, the value of the construction
operations is—

   (a)  if the construction operations are the subject of a construction
        contract—

        (i)    the consideration attributable to the construction operations,
               that is stated in the contract; or

        (ii)   the consideration attributable to the construction operations,
               that is ascertainable by reference to the contract; or

   (b)  in any other case, the reasonable consideration to be expected in the
        open market for the carrying out of the construction operations.

(2) Notwithstanding subsection (1)(a), if the consideration attributable to
any construction operations as determined in accordance with that subsection
is below the reasonable consideration to be expected in the open market for
the carrying out of the construction operations, the consideration of the
construction operations is to be the reasonable consideration referred to in
subsection (1)(b).

(3) For the purposes of this section, the Council may, in a particular case,
have regard to any or all of the following matters when ascertaining the
reasonable consideration to be expected in the open market for the carrying
out of the construction operations concerned—

   (a)  the cost or value of materials used in the construction operations;

   (b)  the cost or value of time, work and labour involved in the
        construction operations;

   (c)  the equipment used in the construction operations;

   (d)  such overhead costs incurred in relation to the construction
        operations as the Council considers reasonable;

   (e)  the reasonable profit to be expected in the open market for the
        carrying out of the construction operations;

   (f)  any other factors that the Council considers appropriate.