Construction Industry Security of Payment Ordinance (Cap 652)

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Note

7/7/2025: Created. Drafting in progress.

Intro

1. The Construction Industry Security of Payment Ordinance (Cap 652) of Hong Kong was enacted on 27 December 2024.
2. Some provisions are only operational starting from 28 August 2025.
3. The Ordinance itself should be read in order to fully understand its contents.
4. The webpage only lists out conversions necessary to the current private standard forms of contract to suit the Ordinance.

Sources

1. Hong Kong e-Legislation for the full updated text: https://www.elegislation.gov.hk/hk/cap652
2. At the end of the webpage, there is a Download section. The RTF version is more compact than the PDF version reducing to half of the number of pages.
3. The Development Bureau's website: https://www.devb.gov.hk/en/publications_and_press_releases/Consultation_Papers_Reports/sop/index.html

Purpose

1. The Ordinance's introductory note says:

An Ordinance to facilitate the recovery of payments under construction contracts; to provide a mechanism for speedy resolution of payment disputes under certain construction contracts through adjudication proceedings; to give a right to a party to a construction contract, under certain circumstances, to suspend or reduce the rate of progress of the construction work or the supply of related goods and services under the contract; and to provide for related matters.

 

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