Written answer by Ministry of National Development on car park maintenance contracts issued by HDB and Town Councils

Nov 7, 2022

Mr Murali Pillai: To ask the Minister for National Development
(a) why does HDB issue Town Councils contracts for maintenance of HDB carparks although such maintenance falls outside the Town Councils Act 1988;
(b) how are the fees in the contracts determined; and
(c) having regard to the different contract cycles and price points of the maintenance contracts issued by HDB and Town Councils respectively, how is the risk of Town Councils cross-subsidising HDB for the maintenance of HDB carparks addressed.

Answer:

HDB car parks are not common property, and therefore do not come under the management and maintenance of Town Councils (TCs). However, the Town Councils Act allows TCs to manage and maintain HDB car parks on terms and conditions mutually agreed between HDB and the TCs.  In this regard, HDB offers TCs the option to serve as the maintenance agent for HDB car parks, as there may be operational synergies in TCs doing so. For instance, TCs can potentially obtain lower prices from calling bulk tenders for maintenance services. TCs can also better coordinate the scheduling of maintenance works to minimize disruption to residents.

2        HDB ensures that the fees are fairly set in a number of ways. In determining the maintenance fees, HDB considers both TCs’ submissions of their operating costs for maintenance of car park equipment such as pumps and fire protection systems, as well as the equivalent private sector rates to ensure that TCs are compensated fairly relative to market prices. It then adds an agency fee to the TCs. The maintenance agreement period is typically three years, so this allows for regular review of the fees. In addition, TCs can assess and decide if they wish to serve as HDB’s maintenance agent.  Should TCs decline the offer to maintain HDB’s car parks, HDB will procure alternative maintenance services via tender.