### Construction Industry Council Ordinance 《建造業議會條例》

41. Imposition of surcharge
(1) If a contractor fails to give a notice under section 35 or 36 and fails to give, within a period allowed by the Council, a reasonable excuse for that failure, the Council may, subject to sections 43 and 45, impose a surcharge on him.
(2) The surcharge may not exceed twice the amount of the levy payable by the contractor.
(3) Notwithstanding subsection (1), the contractor is liable to pay a surcharge only if the Council gives him a notice of the surcharge.
(4) A notice of surcharge shall be in writing and shall specify the amount of the surcharge payable by the contractor.

42. Time limit on making assessment: construction operations under term contract
In the case of construction operations carried out under a term contract, an assessment under this Ordinance may not be made after the expiry of whichever is the last to end of the following periods—
(a) 2 years after the completion of all construction operations under the contract;
(b) 2 years after the expiry of the period within which the contract stipulates that all such construction operations have to be completed;
(c) one year after evidence, sufficient in the opinion of the Council to justify the making of the assessment, comes to its knowledge.

43. Time limit on imposing surcharge: construction operations under term contract
In the case of construction operations carried out under a term contract, a surcharge may not be imposed after the expiry of whichever is the last to end of the following periods—
(a) 2 years after the completion of all construction operations under the contract;
(b) 2 years after the expiry of the period within which the contract stipulates that all such construction operations have to be completed;
(c) one year after evidence, sufficient in the opinion of the Council to justify the imposition of the surcharge, comes to its knowledge.

44. Time limit on making assessment: construction operations other than those under term contract
In respect of construction operations other than those carried out under a term contract, an assessment under this Ordinance may not be made after the expiry of whichever is the last to end of the following periods—
(a) 2 years after the completion of the construction operations;
(b) one year after evidence, sufficient in the opinion of the Council to justify the making of the assessment, comes to its knowledge.

45. Time limit on imposing surcharge: construction operations other than those under term contract
In respect of construction operations other than those carried out under a term contract, a surcharge may not be imposed after the expiry of whichever is the last to end of the following periods—
(a) 2 years after the completion of the construction operations;
(b) one year after evidence, sufficient in the opinion of the Council to justify the imposition of the surcharge, comes to its knowledge.

### Construction Industry Council Ordinance 《建造業議會條例》

46. Payment of levy, surcharge or penalty, etc.
(1) A contractor who is given a notice of assessment or a notice of surcharge shall pay to the Council the amount of the levy or surcharge specified in the notice given to him, within the specified period.
(2) If the amount of the levy or surcharge is not fully paid within the specified period, the contractor is liable to pay a penalty of 5% of the unpaid amount.
(3) If the amount of the levy or surcharge, including any penalty imposed under subsection (2), is not fully paid within 3 months after the expiry of the specified period, the contractor is liable to pay a further penalty of 5% of the unpaid amount.
(4) A penalty or further penalty is payable in addition to the levy or surcharge for the non-payment of which it is imposed.
(5) In this section, specified period (指明期間), in relation to—
(a) the levy, means the period of 28 days after the contractor receives the notice of assessment; and
(b) a surcharge, means the period of 28 days after the contractor receives the notice of surcharge.

47. Recovery of levy, surcharge or penalty, etc.
(1) A levy, surcharge, penalty or further penalty due and payable under this Ordinance is recoverable as a civil debt due to the Council.
(2) An action for such recovery may be brought in the District Court notwithstanding that the amount due exceeds the financial limits on the civil jurisdiction of the District Court under the District Court Ordinance (Cap. 336).

48. Levy, surcharge or penalty, etc. payable despite intention to object
The levy or a surcharge, penalty or further penalty shall be paid in accordance with section 46 even if the contractor concerned intends to make an objection under section 55.

49. Council’s power to waive or refund whole or part of levy, surcharge or penalty, etc.
(1) The Council may waive or refund the whole or any part of a levy, surcharge, penalty or further penalty if it considers it fair and reasonable to do so in the special circumstances of a particular case.
(2) If an amount waived under subsection (1) has already been paid to the Council, the Council shall refund it.
(3) If, in respect of any construction operations, the Council receives more than the proper amount of the levy due to more than one contractor paying the whole or part of amount due, the Council shall refund the excess to the contractor entitled to the refund.

### Construction Industry Council Ordinance 《建造業議會條例》

50. Application of this Part
(1) This Part does not apply to construction operations that are carried out both—
(a) for a person who occupies a domestic unit or part of a domestic unit; and
(b) for the sole or principal purpose of decorating, altering, repairing, maintaining or renovating the unit or any part of the unit.
(2) In this section, domestic unit (住用單位) means any premises used or intended to be used solely or principally for residential purposes and constituting a separate household unit.
(3) For the purposes of this section, a person is regarded as a person who occupies a domestic unit if he intends to occupy the unit.

51. Power of Chief Executive in Council to exclude certain construction operations from application of this Part
(1) The Chief Executive in Council may, by order published in the Gazette, exclude any construction operations from the application of this Part.
(2) An order under subsection (1) may exclude particular construction operations or a type or description of construction operations.
(3) An order under subsection (1) may specify the circumstances in which or the purposes for which the exclusion applies.

52. Value of construction operations
(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.