Legal News & Analysis – Asia Pacific – Hong Kong – Construction & Real Estate

CFA’s decision in Paul Y and Lucky Engineering v. HKSAR – “Russian Doll Metaphor”: A Curse on Main Contractors?

Contractors on a construction site are like Russian dolls. A larger contractor will sub-contract its works to smaller contractors, layer within layer. The recent decision of the Hong Kong Court of Final Appeal Paul Y and Lucky Engineering v. HKSAR confirm that Main Contractors, the outermost doll, are guilty of a “like offence” for every offence committed by their sub-contractors under the FIUO. It also affirms that there are only limited defences available.

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