The Chief Judge has issued the Construction Industry Security of Payment Rules (“Rules”), pursuant to s. 50 of the Construction Industry Security of Payment Ordinance Cap. 652 (“SOPO”).
The Rules provide for the practice and procedure relating to applications to enforce or set aside adjudicators’ determinations under SOPO.
Significantly, the Rules provide:
- That applications to set aside or enforce adjudication determinations are to be made to either the District Court (for adjudicated amounts under HKD $3 million (including interest)) or the Court of First Instance (for adjudicated amounts over HKD $3 million (including interest));
- The process for calculating and paying security into court when making a set aside application; and
- The mechanism for appealing against a decision to grant or refuse an application to set aside or enforce an adjudication determination.
Apart from the above, the Rules also provide for service, filing, and the transfer of proceedings. The Rules do not mention whether any specific judges will be appointed to hear SOPO-related matters.
The Rules are subject to negative vetting (meaning the Legislative Council has 28 days to amend the Rules) and will come into effect on 5 September 2025, after the commencement of the SOP Ordinance on 28 August 2025.
For our earlier commentary about the SOP legislation and practical guidance, please see our articles below:
- Hong Kong Security of Payment Ordinance – In Action
- 7 Deadly SOPO Sins: The red-flag drafting issues that construction industry participants should consider addressing in their construction contracts before 28 August 2025
- The Security of Payment Ordinance is Here: What Should You Do Next?
King & Wood Mallesons has extensive experience in dealing with SOP regimes in many jurisdictions and can guide you through the technical and legal minefield to ensure you receive the best possible outcome. We would be happy to discuss the adjudication process, preparatory work required to get ready for this new regime, and what support we can offer to your organisation.
