Construction Industry Security of Payment Ordinance (Cap 652)
Construction Industry Security of Payment Ordinance (Cap 652) KCTangNote
7/7/2025: Created. Drafting in progress.
Intro
- The Construction Industry Security of Payment Ordinance (Cap 652) of Hong Kong was enacted on 27 December 2024.
- Some provisions are only operational starting from 28 August 2025.
- The Ordinance itself should be read in order to fully understand its contents.
- The webpage only lists out conversions necessary to the current private standard forms of contract to suit the Ordinance.
Sources
- Hong Kong e-Legislation for the full updated text: https://www.elegislation.gov.hk/hk/cap652
- 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.
- The Development Bureau's website: https://www.devb.gov.hk/en/publications_and_press_releases/Consultation_Papers_Reports/sop/index.html
Purpose
- 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.