HKIAC Approved To Act As Adjudicator Nominating Body under Security of Payment Scheme
On 23 December 2021, HKIAC was added to the Register of Adjudicator Nominating Bodies in respect of the Security of Payment Provisions for Public Works Contracts scheme currently operated by the Government of the Hong Kong Special Administrative Region for the adjudication of disputes in public works projects.
The Security of Payment Provisions for Public Works Contracts (“SOP Provisions”) were introduced by the Development Bureau of the Hong Kong government to provide an interim mechanism for speedy resolution of payment disputes pending enactment of security of payment legislation. The SOP Provisions aim to promote fair payment and to help contractors, subcontractors, consultants, sub-consultants, and suppliers receive payment on time for work done and services provided. The SOP Provisions have already been included in certain public works contracts tender invitations as of 31 December 2021 and will be included in main contracts and construction subcontracts at all tiers from 1 April 2022.
Under the SOP Provisions, where a dispute regarding payment arises, parties may refer such disputes to adjudication. The nomination and appointment of the adjudicator shall be carried out by the Adjudicator Nominating Body (“ANB”) specified in the contract (such as HKIAC). The ANB will make the requested appointment within 5 days of the commencement of an adjudication and will also perform other administrative tasks such as the management of deposits, monitoring of the case, and delivery of the adjudication decision.
In respect of the SOP Provisions and HKIAC’s approval as an accredited ANB, HKIAC has prepared the following:
- Security of Payment Adjudication Rules which supplement the SOP Provisions. These detail HKIAC’s functions as an ANB;
- Security of Payment Panel of Adjudicators, which comprises members who are eligible to be appointed as adjudicators under the SOP Provisions; and
- A fee scale for adjudicators appointed by HKIAC under the SOP Provisions incorporating an hourly rate with capped amounts depending on the amount in dispute.
Please click here for more information regarding the SOP Provisions and HKIAC’s role as an ANB.