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Hong Kong Contract Terms Construction Contracts

BCLP

HK Security of Payment Bill: Government Responds to Submissions from the Public

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The Hong Kong Government received 37 submissions from the public in July 2024 regarding the Construction Industry Security of Payment Bill (“Bill”) and held discussions with deputations from different stakeholders at a LegCo...more

BCLP

HK Security of Payment Bill: An Insolvency Exception to Ban Against “Pay When Paid” Clauses?

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On 16 July 2024, the Hong Kong LegCo Bills Committee which is considering the Construction Industry Security of Payment Bill (“Bill”) held a meeting to receive representations and submissions on the Bill from deputations sent...more

BCLP

HK Government Responds to 19 June Letter From Legco in-house Lawyer Regarding the Security of Payment Bill

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Our earlier Insight “LegCo in-house lawyers request clarifications regarding the Security of Payment Bill” reported that the Legal Service Division of the LegCo wrote a letter on 19 June 2024 to the HK Government seeking to...more

BCLP

Comments from HK LegCo Members Regarding the Security of Payment Bill

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On 21 June 2024, the Hong Kong LegCo Bills Committee which is considering the Construction Industry Security of Payment Bill (“Bill”) held a meeting to discuss various policy concerns of the Bill....more

BCLP

Confronting and Mitigating Against Corruption

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Construction is a $1.7 trillion industry worldwide, contributing between 5 and 7 percent of GDP in most countries. However, it is also an industry that is highly vulnerable to corruption due to its inherent characteristics....more

BCLP

HK High Court Refuses Leave to Appeal Against Interim Measures

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In W v Contractor [2024] HKCFI 1452, the Hong Kong High Court dismissed an application for leave to appeal against the interim measures granted by an arbitrator to restrain an employer from calling on a bond in relation to a...more

BCLP

Changes in the Payment and Adjudication Processes Regarding Variations and Time-related Disputes

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In May 2024, the Hong Kong Government introduced the Construction Industry Security of Payment Bill (Bill) to the Legislative Council for first reading. If the Bill is passed into law, the Bill will introduce a statutory...more

BCLP

Hong Kong Security of Payment Bill Gazetted

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The long-anticipated Construction Industry Security of Payment Bill (“Bill”) was gazetted on 17 May 2024 and was introduced into LegCo for its first reading on 29 May 2024. The Bill aims to establish a legislative framework...more

Latham & Watkins LLP

Hong Kong Court Resolves Conflicting Authority on Trust Claims

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This resolution is important for contractors’ rights to retention monies in construction contracts. The Hong Kong Court of First Instance (CFI) held in a recent judgment that, whilst the absence of segregation is not...more

BCLP

NEC ECC Hong Kong Edition: 5 Key Features

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The Hong Kong Edition of the New Engineering Contract (“NEC”) was published in July 2023 in a joint undertaking with the Development Bureau (“DEVB”) of the HKSAR Government (“Government”). ...more

BCLP

Assessment of damages for breach of contract: costs of cure vs difference in value

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The most common remedy for breach of contract is the award of damages. The usual aim of the court is to place, as far as possible, the innocent party in the position it would have been in had the breaching party performed...more

BCLP

Security of Payment in Hong Kong - pilot programme for public works contracts

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As the old saying holds, cash-flow is the life blood of the construction industry. In 2021, Hong Kong looks set to join Singapore, Australia and other jurisdictions in implementing a Security of Payment regime to...more

White & Case LLP

Time bar notices: specifying the contractual basis of claim

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Can a valid claim notice issued, on time, referring to one contractual basis, be relied upon where a claim is ultimately pursued on a different ground? In the first authoritative case to consider this issue, the Hong Kong...more

Akin Gump Strauss Hauer & Feld LLP

A Strict Approach to Notices as a Condition Precedent to Entitlement: The Impact for Contract Drafters and International...

Maeda Corporation and China State Construction Engineering (Hong Kong) Limited v Bauer Hong Kong Limited handed down in the Hong Kong Court of Appeal has significantly elevated the fundamental importance of so-called...more

White & Case LLP

Compelling the performance of construction works

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Courts and arbitral tribunals in many jurisdictions have the power to order contractors to perform building works - to order "specific performance" of a construction contract.  But these powers are rarely exercised.  A recent...more

Dechert LLP

COVID-19: Suspension of Contractual Rights and Obligations in Singapore (and Possibly Soon Elsewhere)

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Contractual rights agreed in the past may look very different today and may not be enforceable tomorrow, but (strangely) could be in the future. Such are the historic times we are living through. ...more

White & Case LLP

Construction contracts: ambiguities in remeasurement provisions

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Remeasurement provisions are commonly used in construction and engineering contracts where there is uncertainty as to the quantity of work to be performed by the contractor. Remeasurement may be desirable in these situations,...more

Hogan Lovells

A question of construction – Hong Kong court rules that arbitration clause in head contract was not incorporated into sub-contract

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The question of whether an arbitration clause has been successfully incorporated into a contract is one that has come before the courts regularly, with different jurisdictions taking different approaches to what counts as...more

Hogan Lovells

Summary of principles from recent NEC cases

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As a market leading construction team with extensive experience in the NEC suite, Hogan Lovells has prepared a summary of principles from recent case law on NEC that may impact upon the construction industry. ...more

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