The Fee Sensitive Risk Exposures of Project Authorized Person in Hong Kong

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Sai-On Cheung
Ka-Chi Lam
Schek-Sau Wong
Sik-Hung Wong

Abstract

Authorized Persons (AP) play a critical role in the design and construction of building works in Hong Kong. Under the Building Ordinance, design and construction of building works need to be coordinated and monitored by an AP registered with the Buildings Department. Professionally qualified Architects, Engineers and Surveyors are eligible to register as AP after completing the prescribed assessment. In addition, the project AP is often appointed by the project owner to be the project team leader. In these capacities, a project AP is exposed to various risks. This paper seeks to identify the fee sensitive risk exposures of project APs. Through an ANOVA study, these risks exposures are those due to liabilities under the Building Ordinance at the construction stage, those towards the third parties and the clients.

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