Frequently Asked Questions

Scope of application

（1）

When the Ordinance comes into effect on 28 August 2025, will contracts entered into before that date be regulated by the Ordinance immediately? Can parties to a contract enter into a supplemental agreement to make a contract entered into before 28 August under the coverage of the Ordinance?

The Ordinance only applies to new main contracts and their sub-contracts signed on or after 28 August 2025. Contractual provisions can be incorporated in contracts entered into before the implementation date of the Ordinance to enforce certain provisions of the Ordinance (i.e. similar to the Technical Circular TC(W) N. 6/2021 issued by the Development Bureau in December 2021), but it should be noted that the provisions of the Ordinance in relation to the applications to the Court for setting aside and enforcing adjudication determinations which involve the Court’s proceedings and therefore cannot be enforced by means of contractual provisions.

（2）

I did not sign a written contract with the upper-tier party and only verbally agreed on the work scope, price, etc. Can I still enjoy the rights conferred by the Ordinance?

Construction contracts to which the Ordinance applies include written or oral, or partly written and partly oral contracts. Although oral contracts are also covered by the Ordinance, in order to better protect the rights and interests of both parties, the parties to the contract (in particular sub-contract) should use written contracts as far as possible.

（3）

The building where I live will be undergoing maintenance works. Is the works contract under the coverage of the Ordinance?

The Ordinance does not apply to contracts for construction work or supply of related goods/services in an existing residential unit and/or its common parts, such as interior fitting-out works, building repair and maintenance, etc.

（4）

If an industrial building will undergo alteration works and part of the works requires the approval by the Building Authority (BA), and the cost of the part of the works requiring BA’s approval is more than HK$5 million. Does the Ordinance only cover the part of the works requiring BA’s approval?

No. The “contract value” of a main private contract as defined under the Ordinance shall take into account the value of the works in non-residential parts (including shops, offices, guesthouses, hostels, etc.) that require BA’s approval. If the contract value is not less than HK$5 million, the Ordinance will cover the entire works contract and its sub-contracts for alteration works in that industrial building.

（5）

Many landscaping works have a contract value of less than HK$5 million. Are these works not under the coverage of the Ordinance?

The minimum contract value specified in the Ordinance only applies to the main contracts. If a main contract is under the coverage of the Ordinance, the sub-contracts along the same supply chain (regardless of the amount), are subject to the regulation of the Ordinance. Therefore, if the landscaping works is under a sub-contract, there is no limit on the amount. If the landscaping works is under a main contract (i.e. procured directly by the owner), it must meet the definition of construction work under the Ordinance and the contract value is not less than the minimum contract value specified in Schedule 4 to the Ordinance in order to be covered by the Ordinance.

（6）

If a term contract’s value is more than HK$5 million but the value of each works order is less than HK$5 million, can the contractor exercise its rights under the Ordinance in respect of a works order with a value of less than HK$5 million?

Whether the minimum contract value set in the Ordinance is met shall be based on the value of the main contract on the date when the main contract is entered into. A fixed-term service contract (including each works order) is under the coverage of the Ordinance if its contract value is not less than the minimum contract value on the date when the service contract is entered into.

（7）

How can a subcontractor know whether the value of the main contract exceeds the minimum contract value under the Ordinance?

Whether the minimum contract value set in the Ordinance is met shall be based on the value of the main contract on the date when the main contract is entered into. The subcontractor may check with the owner or the main contractor whether the contract value of that contract exceeds the minimum contract value specified in the Ordinance.

（8）

If the project uses “Modular Integrated Construction” (MiC), does the Ordinance cover the supply contract of the module supplier?

As long as these contracts are for the supply of materials or components for construction work in Hong Kong, such supply contracts are under the coverage of the Ordinance. If the supply contract itself is a main contract (i.e. procured directly by the owner), its contract value must not be less than the minimum contract value specified in Schedule 4 to the Ordinance in order to be covered by the Ordinance.

（9）

Does the Ordinance cover service contracts such as Building Information Modelling (BIM) and Common Data Environment (CDE)?

As long as these services are related to construction work in Hong Kong, such service contracts are under the coverage of the Ordinance. If the service contract itself is a main contract (i.e. procured directly by the owner), its contract value must not be less than the minimum contract value specified in Schedule 4 to the Ordinance in order to be covered by the Ordinance.

（10）

Does the Ordinance cover legal advisory services, claim consultants or insurance?

The Ordinance specifies that such services are not included as consultancy services in relation to construction work in Hong Kong.

（11）

If a contract only requires the supply of labour and does not involve the actual construction work or the provision of materials required for the works, is that contract covered by the Ordinance?

Supply contracts for the provision of human resources for carrying out construction work are under the coverage of the Ordinance. If the supply contract itself is a main contract (i.e. procured directly by the owner), its contract value must not be less than the minimum contract value specified in Schedule 4 to the Ordinance in order to be covered by the Ordinance. In the case of a subcontract, there is no limit on the amount. However, it should be noted that employment contracts are not under the coverage of the Ordinance.

（12）

If the main contract specifies the maximum number of subcontracting tiers permitted, but the actual subcontracting tiers on site exceed the maximum subcontracting tiers specified in the contract. Are these subcontractors whose subcontracting tier exceeds the maximum number of subcontracting tiers specified in the contract protected by the Ordinance?

Limiting tiers of subcontracting is a contractual requirement and should be dealt with in accordance with the terms of the contract in case of a breach. Subcontracts whose subcontracting tier exceeds the maximum number of subcontracting tiers specified in the contract will still be under the coverage of the Ordinance as long as they meet the criteria specified in the Ordinance.

Improvement of contract payment terms

（13）

For a nominated sub-contract, the main contractor is required to pay the nominated sub-contractor in accordance with the payment certificate issued by the contract manager appointed by the owner. (1) Would the prohibition of “conditional payment provisions” affect this practice? (2) If there is a payment dispute, which party, the owner or the main contractor, should the nominated subcontractor initiate adjudication proceedings against?

(1) No. The owner, main contractor, and nominated subcontractor may specify appropriate payment terms in their contracts to meet their operational needs and the requirements of the Ordinance. (2) Adjudication proceedings can only be raised by the contractual parties to a contract. If the contractual parties to a contract are the main contractor and the nominated subcontractor, the nominated subcontractor shall initiate adjudication proceedings against the main contractor in respect of any payment dispute.

（14）

In the event of the bankruptcy of an upper-tier party, would the prohibition on “conditional payment provisions” in the Ordinance be waived?

No. First of all, the fundamental principle of the Ordinance is to allow stakeholders along the supply chain to obtain their entitled payments after completing the work according to the contract requirements. Under the situation of insolvency of an upstream contractor or subcontractor, if the subcontract between the downstream subcontractor and its next downstream subcontractor as well as further downstream subcontracts still enforce “pay-when-paid” clauses, all downstream subcontractors will be unable to receive their entitled payment after completing the work, which is contrary to the above-mentioned fundamental principle.

（15）

The Ordinance prohibits “conditional payment provisions”. Does this prohibition include the condition to comply with contract specifications?

“Conditional payment provisions” mainly relate to provisions that make the paying party's liability/time for payment contingent or conditional on the receipt of payment of all or any part of an outstanding amount owed by a third party. Therefore, compliance with the contract specifications does not fall within the meaning of “conditional payment provisions” prohibited under the Ordinance. Accordingly, the claiming party is still required to complete the work in accordance with contractual requirements.

（16）

Does Subsection (c) of Section 17(2) of the Ordinance in relation to “conditional payment provisions” mean that the main contractor cannot withhold part of the payment to the subcontractor as retention money until issuance of the maintenance certificate by the architect?

Section 17(2)(c) of the Ordinance refers to a provision “that otherwise makes the liability to pay money owing, or the date on which money owing becomes payable, contingent or conditional on the operation of any other contract or agreement.” If the construction contract between the main contractor and the subcontractor specifies that the obligation or time for payment (e.g. refund of retention money, etc.) is conditional on the receipt of a certificate by the main contractor under the main contract, such a condition may constitute a “conditional payment provision” under Section 17(2)(c) of the Ordinance. Professional legal advice should be sought to determine whether a specific contract provision amounts to “conditional payment provision” under the Ordinance.

（17）

What are the requirements for a payment claim under the Ordinance?

The Ordinance specifies that a payment claim shall:

• be in writing;
• identify the construction work or related goods and services to which the payment relates;
• state the claimed amount and how the claimed amount is calculated.

（18）

What are the requirements for a payment response under the Ordinance?

The Ordinance specifies that a payment response shall:

• be in writing;
• identify the payment claim to which it relates;
• state the amount the paying party admits to pay (admitted amount), the difference between the claimed amount and the admitted amount, and how the admitted amount is calculated.

（19）

How would the maximum 30-day payment response period and the 60-day payment deadline specified in the Ordinance begin to be calculated?

The maximum payment response period and payment deadline are 30 days and 60 days, respectively, after a valid payment claim is served by the claiming party. As for the date on which a payment claim may be made (i.e. the billing date under the Ordinance), the parties are free to agree on such a date in the contract. If there are no specified dates for submission of payment claims in the contract, the claiming party may make a payment claim on the last day of each month in accordance with the provisions of the Ordinance.

（20）

If the parties to the contract specify in the contract that the payment period is 75 days, which exceeds the maximum payment period of 60 days required by the Ordinance, will that payment provision be regarded as invalid?

Yes. Even though a longer payment period is specified in the contract, the paying party is still required to pay the admitted amount to the claiming party before the lapse of the 60-day period.

（21）

Do I need to state in my payment application that I am making a payment claim under the Ordinance in order to be under the protection of the Ordinance?

A payment application under a construction contract (e.g. an application for progress payment) could be regarded as a payment claim if it complies with the requirements of the Ordinance. There is no need to specify that the payment claim is made under the Ordinance.

（22）

Could a certificate or assessment (e.g. payment certificate) issued by the paying party under the contract be regarded as a payment response?

A certificate or assessment issued under a construction contract shall be regarded as a payment response if it complies with the requirements of the Ordinance. There is no need to specify that the payment response is made in accordance with the Ordinance.

（23）

If the claiming party makes a payment claim before the billing date specified in the contract, how would the payment response deadline and payment deadline be calculated?

If a payment claim in relation to a progress payment is served before the billing date of the progress payment, the payment claim will be deemed to be served on the billing date, and the payment response deadline and payment deadline would be calculated from this starting point.

（24）

If the claiming party makes a payment claim after the billing date specified in the contract, how would the payment response deadline and payment deadline be calculated?

If the date of delivery of a payment claim in relation to the progress payment is later than the billing date, the date of service of the payment claim shall be deemed to be the billing date, and the payment response deadline and payment deadline would be calculated from this starting point.

（25）

What would happen if the paying party fails to serve a payment response by the deadline?

If the paying party does not serve a payment response by the deadline and fails to pay the relevant amount, they would be deemed to have disputed the claimed amount, and the claiming party would have the right to initiate adjudication proceedings. Additionally, the paying party cannot raise any set-off (e.g. deduction of liquidated damages) in relation to the payment claim in the adjudication proceedings.

（26）

Does the Ordinance apply to the final payment of a contract?

Yes. Progress payment as defined in the Ordinance means a payment for carrying out construction works, or supply of related goods and services for construction works under a construction contract, and therefore includes the final payment of the contract.

Payment disputes arise

（27）

What are the specific circumstances of a payment dispute as defined in the Ordinance?

Under the Ordinance, a payment dispute is deemed to have arisen in following three events: (1) the paying party fails to serve a payment response by the payment response deadline after the claiming party has served a valid payment claim on the paying party; or (2) the paying party, in response to a payment claim, disagrees with the amount claimed by the claiming party; or (3) the paying party responds to the payment claim and admits that there is an amount due but fails to pay the claiming party the admitted in full by the payment deadline. In these events, the claiming party has the right to initiate adjudication proceedings for a payment dispute in accordance with the Ordinance.

（28）

Assume that the amount claimed in a payment claim is $900,000 and the amount admitted in the payment response is $500,000. If the claiming party refers the payment dispute to adjudication, would the claiming party not even receive the admitted amount of $500,000?

This situation can be divided into: (1) an amount of $400,000 is disputed and (2) an amount of $500,000 is admitted for payment:

• For the amount of $400,000 under dispute, the claiming party may initiate adjudication proceedings within 28 days after the dispute arises.
• For the amount of $500,000 admitted for payment, the paying party must pay the full amount of the admitted amount to the claiming party within the payment period. Otherwise, another payment dispute would arise, and the claiming party may initiate adjudication proceedings again and exercise its right to suspend or reduce the progress of work/supply.

（29）

Are payment disputes arising during the defect liability period under the coverage of the Ordinance? Could the contractor make monthly payment claims during the defect liability period? Is it the owner’s responsibility to respond to the payment claims on a monthly basis?

The Ordinance does not specify that when a contract reaches a certain stage (e.g., defect liability period), the Ordinance would cease to apply. In principle, as long as the lower-tier party carries out construction work or provides services under the contract, they are entitled to receive progress payments. As for the date on which a payment claim can be made (i.e., the billing date under the Ordinance), the parties are free to agree on such a date in the contract, and the lower-tier party would be required to make a payment claim according to the date specified in the contract. According to the provisions of the Ordinance, if there is no date specified for submission of payment claims in the contract, the lower-tier party may make a payment claim on the last day of each month and, in such case, the upper-tier party has to make payment response within 30 days after receiving the payment claim.

（30）

The Ordinance specifies that if part of a payment claim involves additional payments (e.g., variation orders), the claim handling procedure for additional payments must be completed before the claiming party could refer the dispute to adjudication. What exactly does additional payment mean?

Additional payments refer to payments in respect of expenses or losses incurred by a party to a construction contract as a result of:

1. Delay or disruption in the construction work, or delay or disruption in the supply of goods and services for the construction work.
2. Any changes to the construction work (or the supply of related goods and services to the construction work) that may be made under the contract.

（31）

Could the paying party take advantage of the claim handling procedure to delay the assessment of additional payments?

The paying party must assess the additional payments within the period specified in the claim handling procedure under the contract, failing which the claiming party can make a payment claim under the Ordinance and, where appropriate, initiate adjudication proceedings. If there is no time limit for completion of assessment of additional payments in the claim handling procedure under the contract, the paying party is required by the Ordinance to complete the assessment within a reasonable time.

Adjudication proceedings

（32）

Under the Ordinance, a payment dispute can only be referred to adjudication within 28 days from the date on which it arises. If the 28-day period is lapsed, does the claiming party lose their right to refer that payment dispute to adjudication?

Yes. The 28-day period is to give the parties an opportunity to discuss or negotiate a resolution of their disputes before initiating adjudication proceedings and to allow the claiming party to be adequately prepared to submit an application for adjudication proceedings and the relevant documents. If the claiming party misses the 28-day deadline, the payment dispute arising from that particular progress payment cannot be referred to adjudication.

（33）

Could the parties agree that, if the amount admitted for payment exceeds 70% of the amount claimed, the claiming party cannot refer the payment dispute to adjudication?

No. The Ordinance has provision on no contracting out of the Ordinance. Under Section 11(2) of the Ordinance, a provision of a contract or agreement (whether made in writing or not) is void to the extent that:

1. it is inconsistent with this Ordinance;
2. it has the effect of excluding, modifying, or restricting the operation of this Ordinance;
3. it may be construed as an attempt to deter a person from taking action under this Ordinance.

Therefore, as long as the requirements of the Ordinance are met, the right to initiate adjudication proceedings would not be restricted or prohibited by the provision of any contract or agreement.

（34）

How to appoint a suitable adjudicator to handle a payment dispute?

The parties to the contract shall appoint a suitable adjudicator to handle a payment dispute through the adjudicator nominating body. The Development Bureau will establish a register of adjudicator nominating bodies (please refer to the Development Bureau's website for details. The parties may specify in the contract the adjudicator nominating body at the time of entering into the contract. In the event of a payment dispute arising, the claimant may serve a written notice of adjudication on the adjudicator nominating body and the respondent. If there is no adjudicator nominating body specified in the contract, or if there is more than one nominating body specified, the claimant shall nominate two adjudicator nominating bodies for the respondent’s selection. Upon receipt of the adjudication notice, the adjudicator nominating body shall nominate a suitable adjudicator to the parties for their consideration and appoint an adjudicator within 7 working days.

（35）

Could the parties appoint a suitable adjudicator to handle payment disputes on their own?

The parties to the contract are required to appoint an adjudicator through an adjudicator nominating body. If the parties prefer a particular person to be the adjudicator, they could make a request to the adjudicator nominating body at the time of filing the adjudication notice, and the nominating body would make corresponding arrangements as appropriate.

（36）

What are the procedures of adjudication proceedings?

The procedures of the adjudication proceedings are as follows:

1. The claimant must serve a written adjudication notice¹ on the respondent and the adjudicator nominating body within 28 days of the payment dispute arising.
2. The adjudicator nominating body shall appoint an adjudicator within 7 working days² of receipt of the adjudication notice.
3. The claimant shall serve an adjudication submission on the adjudicator and the respondent within 1 working day of receipt of the notice of appointment of adjudicator.
4. The respondent shall serve an adjudication response on the adjudicator and the claimant within 20 working days (or such longer period as the adjudicator agrees) upon receipt of the adjudication submission.
5. The claimant shall serve a reply to the adjudication response on the adjudicator and the respondent within 2 working days (or such longer period as the adjudicator agrees) upon receipt of the adjudication response.
6. The adjudicator shall make a determination within 55 working days (or such longer period as the parties agree) of their appointment.

（37）

What would be included in the adjudicator's determination?

The adjudicator's determination would include the adjudicated amount (including interest) and the deadline for payment of the adjudicator amount, as well as the adjudication fee and proportion to be paid by both parties. If the payment dispute involves an extension of time and the adjudicator has jurisdiction to deal with it, the award will also include the number of days of extension of time and the amount to be paid arising from the extension of time (e.g. prolongation cost).

（38）

What are the specific arrangements for phased implementation of adjudication of payment disputes relating to an extension of time under the Ordinance?

In phase one (starting from 28 August 2025), adjudication of payment disputes involving an extension of time will first apply to construction contracts procured by public bodies (including the Government, bodies specified in Schedule 3 to the Ordinance, or their subsidiaries). After phase one implementation, the Government will work closely with the industry to review the effectiveness of adjudication of such disputes. When the industry is sufficiently prepared, adjudication of payment disputes involving an extension of time will be extended to cover private works. The Ordinance provides the flexibility to extend adjudication of payment disputes involving an extension of time to private works at an appropriate time through the publication of a gazette.

（39）

If only part of the payment dispute in a main private contract (or its subcontract) relates to an extension of time, could the part of the payment dispute not related to the extension of time still be referred to adjudication at phase one implementation of the Ordinance?

Yes. If only part of the payment dispute involves an extension of time, the adjudicator could still deal with the part that does not involve the extension of time.

（40）

When dealing with a payment dispute in relation to an extension of time, would the adjudicator determine both the number of days of extension and the amount to be paid arising from the extension (e.g., prolongation cost)?

Yes. The Ordinance requires the adjudicator to determine both the number of days of extension and the amount to be paid arising from the extension when dealing with a payment dispute relating to an extension of time.

（41）

If the subcontractor does not agree with the progress quantity assessed by the main contractor, and at the same time uses this progress quantity to assess the progress of the sub-subcontractor. As a result, the subcontractor is facing adjudication proceedings initiated by the main contractor and the sub-subcontractor at the same time. Could the determination of one adjudication case completed earlier be used as evidence in another adjudication case?

No. The Ordinance provides that a person shall not disclose the adjudicator’s determination to another person unless the conditions specified in Section 52 of the Ordinance are satisfied. The use of the determination of a completed adjudication case as evidence in another ongoing adjudication case does not satisfy the conditions specified in Section 52 of the Ordinance.

（42）

What are the costs of the adjudication proceedings? How much does it cost?

The costs of the adjudication proceedings include: (a) the fees of the adjudicator nominating body; (b) the adjudicator's fees and expenses; and (c) according to Section 35(1) the cost of appointing an independent expert, or the cost of inspecting a construction site or inspecting construction work or anything else that has been carried out. The costs of the adjudication proceedings shall be shared between the parties in a proportion determined by the adjudicator.
The Ordinance provides that the Secretary may regulate the fees of adjudicator nominating bodies and adjudicators. The Development Bureau has specified a reasonable ceiling on the fees to be charged when admitting applications of adjudicator nominating bodies. For details of the fee ceilings, please refer to the Development Bureau’s website. For example, if the amount in dispute is HK$1 million or below, the fee of the adjudicator nominating body is capped at HK$8,000 and the total adjudicator’s fee is capped at HK$64,000. The adjudicator nominating bodies are free to set their administrative fees and adjudicators are free to set their hourly rates and charge a total fee according to the time taken to handle the case subject to the ceiling set by the Development Bureau. For specific fees, parties to adjudication may refer to the adjudicator nominating body’s website or contact the adjudicator nominating body.

（43）

What factors would be taken into account by the adjudicator in determining the proportion of costs of the adjudication proceedings?

In determining the proportion of costs to be paid by a party in the adjudication proceedings, the adjudicator may determine the proportion in accordance with Section 55 of the Ordinance, including, for example: (a) the relative success of the party in the proceedings; (b) whether the grounds for appeal are frivolous or vexatious; (c) whether the party acted unreasonably before the commencement of or during the proceedings; (d) the reasons given by the paying party for non-payment of the progress payment.

（44）

If a party to the adjudication engages a lawyer to assist in the adjudication proceedings, could the party recover the relevant costs from the other party if they succeed?

No. The Ordinance specifies that the parties are not required to pay the costs or expenses incurred by the other party in connection with the adjudication (i.e., the losing party is not required to pay the winning party's legal fees).

（45）

As an adjudicator, are there any provisions in the Ordinance that protect an adjudicator from potential liabilities?

Yes. The Ordinance provides that if an adjudicator does (or omits to do) an act in good faith in performing their functions, the adjudicator or adjudicator nominating body shall not be civilly liable for doing (or omitting to do) the act.

（46）

Would I face prosecution or criminal penalties if I contravene the requirements of the Ordinance?

No. The measures provided for in the Ordinance to facilitate payment do not involve criminal prosecution or punishment. In respect of default in payment of an amount determined by an adjudicator, the Ordinance provides a corresponding mechanism for enforcement in Court.

（47）

Is there an appeal mechanism in an adjudication case?

No. The purpose of the adjudication mechanism is to provide a swift and binding mechanism for the construction industry to resolve payment disputes, and the existence of an appeal mechanism may delay the entire dispute resolution time. Therefore, the Ordinance does not provide an appeal mechanism for adjudication. However, although the adjudicator’s determination is binding on the parties, it does not affect the parties’ rights to reach a settlement agreement and to resort to arbitration or litigation.

（48）

If a party considers that the adjudicator’s determination is unfounded, could they apply to the Court to set aside the adjudicator’s determination?

No. The circumstances under the Ordinance for setting aside an adjudicator’s determination by the Court are limited to:

1. the determination was improperly procured through fraud or bribery;
2. there has been a material denial of natural justice in the proceedings;
3. the adjudicator has not acted independently or impartially in the proceedings; or
4. the adjudicator has acted in excess of their jurisdiction in the proceedings.

（49）

If the paying party does not follow the adjudicator's determination to pay the claimant on time, what could the claimant do?

Under the Ordinance, the claimant has the right to: (a) apply to the court for enforcement of the adjudicator’s determination; and/or (b) exercise the right to suspend or reduce the progress of work/supply.

（50）

Is there a time limit for applying to the Court to set aside an adjudicator’s determination?

Yes. The Ordinance specifies that an application to the Court to set aside an adjudicator determination must be made within 14 days after the date on which the determination is served on the parties.

（51）

Is there a time limit for applying to the Court to enforce an adjudicator’s determination?

The Ordinance specifies that a party to the adjudication proceedings could only apply to the Court for enforcement of the adjudicator’s determination upon the expiry of the deadline for payment of the adjudicated amount. The Ordinance does not specify any other time limit in respect of applications for enforcement.

（52）

If the parties are undergoing adjudication proceedings against a payment dispute, could the parties commence arbitration proceedings in respect of the same payment dispute?

Yes. The adjudication proceedings would not affect the parties’ right to litigation or other dispute resolution proceedings (including arbitration) in relation to that payment dispute. However, the adjudicator’s determination will remain valid until it is superseded by a judgment of the Court or other dispute resolution proceedings (including arbitration).

The right to suspend or reduce the rate of progress

（53）

Under what circumstances could the unpaid party exercise the right to suspend or reduce the rate of progress for work/supply?

Under the Ordinance, if (a) the paying party admits that there is an amount due but fails to pay the admitted amount in full by the deadline, and (b) the adjudicator has made a determination on the payment dispute, but the respondent has not paid the adjudicator amount in full to the claimant by the deadline, the unpaid party has the right to suspend or slow down the progress of the work or supply.

（54）

What should I be aware of in exercising my right to suspend or slow down work/supply?

The claimant/claiming party must, at least 5 working days¹ before exercising the right, serve a notice of intention² on the respondent/paying party and notify the owner (usually the employer). The claimant/claiming party shall resume work within 5 working days upon receipt of the outstanding amount in full.

（55）

When I exercise my right to suspend or slow down work/supply, I may also suffer losses (e.g. idling of hired machinery at the construction site), will have to catch up with the construction progress afterwards and may even be liable to the losses incurred by the upper-tier party due to suspension of work. What protection does the Ordinance have for me?

To exercise your right to suspend or slow down work/supply under this Ordinance, you are:

1. not to be regarded as in breach of construction contract;
2. not liable for any loss or damage suffered by the paying party;
3. entitled to an extension of time to complete the contract; and
4. entitled to recover from the paying party any loss and expenses incurred.

（56）

If the work where a payment dispute has arisen has been completed, would the unpaid party not be able to exercise its right to suspend or slow down the work?

The Ordinance does not specify that the right to suspend or slow down work is limited to work where a payment dispute has arisen. A party who does not receive payment may, at its own discretion, suspend or slow down the progress of the remaining work in accordance with the requirements of the Ordinance.