CK Asset Sues Subcontractor for HK$290M Over Anderson Road Housing Defects
HK01 · 1 SOURCESabout 4 hours ago2 MIN
Summary
CK Asset Holdings' former main contractor has filed a lawsuit against a steel bar subcontractor seeking over HK$290 million in damages after structural defects were discovered at a 2,926-unit first-time buyer housing project in Anderson Road, Kowloon. The original contractor supplied 17,494 tonnes of steel reinforcement, exceeding design specifications by 11 percent, while the subcontractor allegedly failed to install the materials according to approved plans. Following Buildings Department inspections and an ICAC investigation, CK Asset decided to demolish and rebuild three towers, with China Railway Construction appointed as the new contractor.
Key Points
- The plaintiff, Zhuoyue Tiangong Limited, was the original main contractor for the Anderson Road project, while defendant Dehong Construction Limited secured the steel bar contract in September 2023 for HK$63.47 million over 915 days .
- Investigations revealed that 17,494 tonnes of steel were supplied against a design requirement of 15,753 tonnes, representing an 11-percent over-supply of 1,741 tonnes .
- The Buildings Department conducted multiple inspections after receiving complaints in September 2024 and issued a stop-work order on October 2, 2024 .
- The ICAC launched an investigation and made arrests in May 2025, reportedly suspecting bribery of supervisors in exchange for accepting substandard steel work .
- CK Asset faces an estimated HK$114 million in penalty payments to the original developer due to project delays .
Why It Matters
The case highlights escalating accountability in Hong Kong's construction sector, where main contractors are now pursuing subcontractors for defective work that ultimately resulted in demolition decisions affecting thousands of prospective homeowners. The HK$290 million claim underscores the financial stakes involved when quality control fails on major housing projects, particularly those intended for first-time buyers facing already challenging market conditions .
The case highlights escalating accountability in Hong Kong's construction sector, where main contractors are now pursuing subcontractors for defective work that ultimately resulted in demolition decisions affecting thousands of prospective homeowners. The HK$290 million claim underscores the financial stakes involved when quality control fails on major housing projects, particularly those intended for first-time buyers facing already challenging market conditions .