The long anticipated Security of Payment (“SOP”) legislation was passed by the Hong Kong Legislative Council yesterday, 18 December 2024.
The Government has reported (here) that the new SOP legislation will be gazetted on 27 December 2024, and that the substantive provisions of the SOP Ordinance will come into operation 8 months later (on 28 August 2025), with construction contracts entered into after that date being governed by the SOP Ordinance.
This development follows extensive consideration by the House Committee and the Bills Committee, and the resumption of the 2nd reading and 3rd reading on 18 December 2024.
We understand that the SOP Ordinance will be slightly different to the SOP Bill that was originally gazetted (accessible here). Once the SOP Ordinance is published, we will circulate it with our observations and recommendations.
For our earlier commentary about the SOP legislation, please see our articles here and here.
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.
