Hong Kong, 14 October 2025 – AALCO Hong Kong Regional Arbitration Centre (AALCO-HKRAC) is pleased to announce that it has been officially admitted to the Register of Nominating Bodies pursuant to the Construction Industry Security of the Payment Ordinance (Cap. 652) by the Development Bureau of the Hong Kong SAR Government DEVB – Register of Nominating Bodies under the Construction Industry Security of Payment (Cap. 652) (2435). We extend our sincere gratitude to the Development Bureau for their continued support and trust in our professional capabilities in dispute resolution. This recognition not only underscores the Government’s commitment to enhancing payment practices in the construction industry but also marks a significant milestone for the Centre in advancing alternative dispute resolution (ADR) services across Asia.
The Ordinance will come into full effect on 28 August 2025, ushering in a new era of standardized and fair payment practices in Hong Kong’s construction sector.
The new regime addresses longstanding industry concerns by streamlining payment processes through a clear statutory framework, ensuring smoother cash flow and timely project payments. This helps contractors and workers maintain financial stability and operational certainty. The Ordinance is expected to further enhance contract performance and the efficiency of dispute resolution, thereby supporting higher project quality, smoother project delivery, and the sustainable development of the construction industry.
Key Purpose of the Ordinance
The core objective of the Ordinance is to promote fair contract performance by all parties and to introduce a timely adjudication mechanism for resolving payment disputes during ongoing projects. If one party fails to make payment on time, the other party may initiate a simplified adjudication process that leads to a binding decision by an independent adjudicator. Under specific circumstances, parties are also permitted to suspend or reduce the supply of goods and services to protect their rights. The Hong Kong courts are empowered to enforce or, when necessary, set aside adjudication decisions, ensuring the system is practically effective.
Commitment and Services of AALCO-HKRAC
This admission reflects AALCO-HKRAC’s founding mission—established under the agreement between AALCO and the People’s Republic of China—to promote the development and effective operation of arbitration and other ADR mechanisms, and to facilitate the widespread adoption of dispute resolution practices across the Asia-Pacific region. As an adjudicator nominating body, AALCO-HKRAC remains committed to delivering professional, efficient, and cost-effective adjudication services to the industry.
Key advantages of AALCO-HKRAC’s adjudication services under the Ordinance include:
- Efficient and Simplified Procedures
We have developed the AALCO Adjudication Rules based on the documents provided by the Development Bureau, ensuring user-friendly procedures with strong enforceability. Learn more: AALCO-HKRAC Adjudicator Nominating Body (ANB) – AALCO
- Integrated Dispute Resolution Options
Adjudication can be seamlessly combined with negotiation, mediation, arbitration, and online dispute resolution (ODR), allowing for rapid dispute resolution and minimal disruption to project timelines.
- Competitive and Transparent Fees
We are committed to offering high-value and low-cost services, with a clear and reasonable fee structure.
- Experienced and Diverse Panel of Adjudicators
Our current panel includes nearly 50 professionals from the construction and legal sectors—architects, engineers, surveyors, solicitors, barristers, and senior counsel. All adjudicators have undergone rigorous training in line with Development Bureau requirements or serve as instructors in related programs, ensuring the quality and credibility of decisions.
- Professional Case Management Support
Our case management team has extensive experience, having handled over 3,000 domestic and international arbitration, mediation, adjudication, and ODR cases under various rules and laws in Hong Kong, covering a wide range of industries and complex disputes.
Looking Ahead
AALCO-HKRAC will continue to work closely with the construction industry, regularly conducting adjudicator training courses and recognizing professional memberships from organizations such as the Hong Kong Institute of Architects (HKIA), the Hong Kong Institution of Engineers (HKIE), and the Hong Kong Institute of Surveyors (HKIS). We welcome professionals with relevant backgrounds and industry experience to join our adjudicator panel and contribute to the development of dispute resolution mechanisms in the construction industry.
Mr. Nick Chan, BBS, MH, JP, Director of AALCO-HKRAC, remarked:
“We are honored to take part in this historic transformation of Hong Kong’s construction industry. Leveraging over six decades of international dispute resolution experience across AALCO’s 49 member states, combined with our local insights, we are committed to offering adjudication services that blend global expertise with Hong Kong’s practical needs. We believe this will help build a fairer and more transparent industry environment, while reinforcing Hong Kong’s status as a regional hub for legal and dispute resolution services.”
Looking to the future, the Centre aims to support the Hong Kong construction sector in seizing opportunities presented by the Greater Bay Area and the Belt and Road Initiative, promoting local legal expertise and professional services to broader markets, and providing solid support for regional infrastructure and cross-border collaboration.
AALCO-HKRAC looks forward to working hand-in-hand with the industry to create a fairer, more efficient, and sustainable future for the construction sector.