When HK`s Chief Executive finally comes into force the competition regulation adopted in 2012, the Competition Commission should first consider itself price-fixing by professional organisations, if it is not yet completed by then. Starting with the Hong Kong Institute of Architects (HKIA), a legal body that establishes its own code of conduct, and in black and white, you will find price agreements: the Commission has checked the practices of 350 associations and identified more than 20, whose practices have been found to be highly threatened with violations of competition regulations. I was told. It has worked with these associations and most of them have taken the necessary steps, including the removal of price restrictions and royalty scales. The professional fee scale, on the HKIA website here, sets minimum percentages for monitoring work based on project value (negotiable only above $1,000 million), minimum hourly rates for each service, minimum fees for various services (including $20,000 for the first day and $3,700 per hour for court participation). , court hearings and arbitrations). , 20% of the contract value for demolition work (at least 215,000 HK), 10% of the value of the contract for monitoring work on the adjacent walls of the party (at least USD 17,500), etc. The online version dates from September 1998. Mohammed Talib, a competition expert at Pinsent Masons, the law firm behind Out-Law.com, said that companies that are members of either association should take active steps to dissociate themselves from the royalty scales set by codes of conduct or risk monitoring. However, “members of these associations can also expect disciplinary action from associations if they do not comply with the code of conduct,” he said. “To the extent that these restrictions would prevent price competition between [architects or planners], their effects could be similar to those of price agreements. Compliance with these restrictions could therefore have the effect of significantly impeding competition in the markets in question,” said the Commission. The HKIA is not only in pricing – if one wonders why HK construction costs are so high, there are also price agreements at the Hong Kong Institute of Landscape Architects, which is a little more subtle: it publishes what it calls “to advise members” and in pages 11 to 13 , you`ll find all the “guidelines” you need.
, including a “percentage fee scale” of 10.05% to 6.90% for landscaping costs in excess of HK 10 million.