Enterprise & Industry

Hong Kong suspends contractors over 24 faulty lifts at Queen Mary Hospital

24 of 28 new lifts fail, delaying a $1.93B hospital project

Deep Dive

Hong Kong authorities have taken rare disciplinary action against the main contractor and lift subcontractor on the Queen Mary Hospital redevelopment, suspending both from future public works tenders. The Architectural Services Department cited "extremely serious" defects in 24 of 28 newly installed lifts at Clinical Block 1, including damaged electronic components, faulty wiring connections, and poor installation workmanship. The suspension applies to the Paul Y – Able Joint Venture, the main contractor for the first phase, and Anlev Elex Elevator, a subsidiary of ATAL Engineering Group founded by Otto Poon Lok-to, husband of former justice secretary Teresa Cheng Yeuk-wah.

Beyond the tender suspension, the department recorded the contractors' poor performance in formal assessment reports and demanded they bear the full cost of remedial works. Contractual mechanisms also allow for claims covering losses from delayed clinical services, which were pushed back until all lifts are repaired and certified. The HK$15.15 billion (US$1.93 billion) redevelopment project is now under intensified supervision, with the department vowing to implement stricter quality checks across all remaining phases to prevent similar failures in the city's public healthcare infrastructure.

Key Points
  • 24 of 28 new lifts in Queen Mary Hospital's clinical block were defective
  • Paul Y – Able Joint Venture and Anlev Elex Elevator suspended from public works tenders
  • HK$15.15 billion project delayed; contractors must pay all remedial costs

Why It Matters

Sets a tough precedent for contractor accountability in Hong Kong's critical public healthcare projects.

📬 Get the top 10 AI stories daily