A brief introduction of the proposed Hong Kong Security of Payment Legislation, a light touch on its features and procedure, followed by a relevant case law from another jurisdiction.

1. The Chartered Institute of Arbitrators
East Asia Branch
Young Members Group
9th December 2017
CIArb (EAB) YMG
Alternative Dispute Resolution Seminar and Promotional talk
for Chun Wo Construction and Engineering Company Limited

2. Alternative Dispute Resolution Seminar
Construction Adjudication
by Ir Albert Yeu

3. Profiles of Speaker
Ir. Albert Yeu is a chartered civil engineer with extensive experience in design and
construction of tunnel, bridge, highway, waterworks and flood prevention scheme in
Hong Kong. Projects involved the Hong Kong-Zhuhai-Macao Bridge, urban trunk
sewerage system, major flood prevention projects, strategic new town development
infrastructure projects, urban drainage improvement works, consultancy procurement
and tendering on a variety of construction contracts. He is experienced with
remeasurement type, works order type, lump sum with BoQ, design&build and NEC
contracts. He is a member of the ICE and HKIE.
Albert is a construction arbitrator. His name appears in various arbitrator lists
(HKIAC, HKIE, KLRCA, THAC, BANI, HKCAC and HKMAAC). He is also a
construction adjudicator at the KLRCA and accredited mediator at the HKMAAC and
KLRCA. Albert is a Fellow of the Chartered Institute of Arbitrators, Hong Kong
Institute of Arbitrators and the Arbitrators' and Mediators' Institute of New
Zealand. He is the secretary of the YMG of the Chartered Institute of Arbitrators
(East Asia Branch), a mediation coach at HKMAAC and a regular speaker in the
areas of ADR and construction contracts.

4. Construction Adjudication
CIArb celebrated its Centenary throughout 2015.
Contractual vs Statutory Adjudication
4
■Dispute Resolution Clause
■Security of Payment Legislation (SOPL)

5. Construction Adjudication
CIArb celebrated its Centenary throughout 2015.
SOPL Background
5
■Other jurisdiction
UK(1996), New Zealand(2002), Singapore(2004), Malaysia(2012),
Australia(2002,2004,2009), Ireland(2013)...
■Hong Kong(2018??)
■2011 detailed industry wide survey
■2012 survey on payment practice in the industry
■June 2015 consultation document
■April 2016 report on public consultation
■LegCo

6. Construction Adjudication
CIArb celebrated its Centenary throughout 2015.
Features
6
■Fast, less expensive
■Temporarily binding
■Defined jurisdiction
■Independence and impartiality
■Enforcement
■Document-only proceedings
■Pay-when-paid provision
■Statutory right of suspension

7. Construction Adjudication
CIArb celebrated its Centenary throughout 2015.
Procedure
7
■Payment Claim and Payment Response
■Notification of Adjudication
■Appointment of Adjudicator
■Adjudication Claim and Adjudication Response
■Oral Hearing
■Adjudication Decision
■Challenge

8. Construction Adjudication
CIArb celebrated its Centenary throughout 2015.
Recent Case
8
■View Esteem Sdn Bhd (Appellant) v Bina Puri Holdings Sdn Bhd
(Respondent) (2017, Federal Court of Malaysia)
■Appellant - developer of building project - service apartments
■September 2009, Respondent appointed to construct
■Dispute arose in a sum of approx. RM12.9M due to IPs
■Appellant’s defence - Over-valuation, incorrect certification

9. Construction Adjudication
CIArb celebrated its Centenary throughout 2015.
Tips for contractor
13
■Select the right adjudicator
■Realize the requirements of payment response
■Beware of the statutory time limit for submissions