Following is a question by the Hon Lam Chun-sing and a written reply by the Secretary for Development, Ms Bernadette Linn, in the Legislative Council today (June 24):
      
Question:

     The Construction Industry Security of Payment Ordinance (the Ordinance) aims to improve the problem of payment delays in the construction industry and provide protection for various stakeholders to receive their entitled payment on time, thereby helping reduce the occurrence of wage arrears of workers. Regarding the implementation of the Ordinance since its commencement, will the Government inform this Council:

(1) of the respective numbers of cases in which adjudication proceedings for payment disputes were initiated, withdrawn, terminated and completed;

(2) among the cases where payment claims were completed, of the average number of working days taken from the appointment of an adjudicator to the making of a determination;

(3) in respect of the adjudicators' determinations on payment disputes, of the respective numbers of applications received by the court to set aside and to enforce the relevant determinations;

(4) of the respective numbers of eligible adjudicators on the panels of adjudicators drawn up by the five adjudicator nominating bodies on the register of adjudicator nominating bodies established by the Government; and

(5) of the respective numbers of cases in which the claiming party notified the paying party of its intention to exercise the right conferred by the Ordinance to suspend or reduce the rate of progress of work or services, and those in which such a right was ultimately exercised?

Reply:

President,

     The Construction Industry Security of Payment Ordinance (the Ordinance) aims to address the long-standing issue of delayed payments in the construction industry and to more effectively protect the stakeholders in the supply chains of the construction industry so that they receive their entitled payments on time, while also seeking to reduce the occurrence of wage arrears among workers. The Ordinance improves contractual payment terms, prohibiting the use of unfair payment terms such as "pay when paid". It also introduces an adjudication mechanism to provide a speedy, cost-effective and binding resolution process for payment disputes in the interim. In addition, under specific circumstances, it allows unpaid parties to suspend or slow down progress of the work or supply.

     The Ordinance came into full operation on August 28, 2025 and construction contracts entered into on or after that date are subject to the Ordinance. To help industry stakeholders understand the content of the Ordinance so as to ensure its effectiveness, the Development Bureau (DEVB), with support from the Construction Industry Council (CIC), has conducted a series of publicity and promotional work, including holding multiple briefing sessions for professionals, main contractors, subcontractors, and suppliers since early 2025. The CIC also launched a dedicated website in November 2025, providing easy-to-understand reference materials and guidelines, standard contract templates, frequently asked questions, videos, and a chatbot. To align with the requirements of the Ordinance, the DEVB and the CIC will continue to communicate with the industry to facilitate the review and revision of relevant clauses in standard construction contracts.

     In addition, the DEVB has completed the registration of the first batch of Adjudicator Nominating Bodies (ANBs). The ANBs are professional institutions familiar with the operation of the construction industry and organisations specialising in handling contractual disputes. The ANBs are required to establish and maintain their own panel of individuals for nomination and appointment of adjudicators. Once the adjudication process is initiated, the ANBs are responsible for appointing independent adjudicators with suitable qualifications and relevant experience to resolve payment disputes, ensuring the independence and impartiality of the adjudication proceedings. To date, five organisations have been registered as ANBs.

     In response to the Member's enquiry, the reply is provided below:

(1), (2), (3) and (5) The questions in all of the above parts relate to adjudication cases upon the implementation of the Ordinance.

     Under the mechanism set out in the Ordinance, for the relevant construction contracts, if a payment dispute arises between the parties, the claiming party has the right to initiate adjudication within 28 days after the payment dispute arises, the contracting parties must appoint an independent adjudicator with suitable qualifications and relevant experience through an ANB registered under the Ordinance to resolve the payment dispute. The adjudicator must make a decision within 55 working days after appointment; the claiming party may apply to the court for enforcement of the adjudication determination after the payment deadline stipulated in the determination has expired. If the circumstances specified in the Ordinance arise, the claiming party has the right to exercise the right to suspend work or slow down the progress of the work. This provision ensures that the claiming party is not required to continue working or advance payments for work in the event of non-payment, thereby alleviating unnecessary financial burdens and risks.

     The Ordinance has been in full force for less than a year. No adjudication cases have yet been initiated under the Ordinance in relation to payment disputes and hence the requested statistical data are not available. We have reasonable grounds to believe that the enactment of the Ordinance in itself carries a deterrent effect, thereby compelling the paying party to discharge its obligations. The DEVB will continue to monitor the implementation of the Ordinance and maintain close communication with industry stakeholders to ensure the smooth operation of the mechanism.

(4) As at June 15, 2026, the numbers of adjudicators under the five ANBs are as follows:
 

ANB	Number of adjudicators
Hong Kong International Arbitration Centre	100
Hong Kong Institute of Surveyors	58
Hong Kong Institution of Engineers	47
Asian-African Legal Consultative Organization Hong Kong Regional Arbitration Centre	39
Hong Kong Institute of Architects	26

Ends/Wednesday, June 24, 2026
Issued at HKT 14:51

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