Commercial Construction & Engineering

It is common for construction industry participants to source various machinery, materials or components from overseas for construction projects in Hong Kong, or to have part of the construction and fabrication or assembly works carried out outside Hong Kong before transporting them into Hong Kong. There are two pieces of recent legislation that have a potential impact on these “overseas” procurement activities. They are (i) the Sale of Goods (United Nations Convention) Ordinance (Cap. 641) which came into effect in December 2022, and (ii) the Construction Industry Security of Payment Ordinance (Cap. 652) which was gazetted on 27 December 2024, with the bulk of which coming into operation in August 2025. In this article, we will explore the changes brought about by these two pieces of legislation, and what those procuring such works or items should do and pay attention to when they source from international suppliers or contractors for construction projects in Hong Kong.

There is a “a dearth of case law” on s1(1) of the Contracts (Rights of Third Parties) Act 1999 (Act), as observed by Lenon KC, the judge in the case of HNW Lending Ltd v Lawrence [2025] EWHC 908 (Ch). Whilst an accurate assessment, the judge would have been well within his rights to add (but didn’t) that the dearth of caselaw extends to the entire Act, not just s1(1). This is surprising given the rising prevalence of reliance on the Act in commercial contracts (and perhaps most frequently, construction contracts) since its introduction in 1999. Therefore this case is particularly welcome and in this Insight, Kevin Henderson takes a look at what we can learn from it.   

This article contains links which are only accessible by PLC subscribers. In this Insight, first published in PLC, Anna Blest and Katharine Tulloch consider the decision in Jaevee Homes Ltd v Fincham (t/a Fincham Demolition) [2025] EWHC 942 (TCC), in which the court concluded, among other things, that informal WhatsApp messages and e-mails between the parties constituted a binding construction contract.

In this Insight, Katharine Tulloch takes a look at the case of Grove Construction (London) Limited v Bagshot Manor Limited [2025] EWHC 591 (TCC) which provides a welcome reminder of the care which should be taken when drafting contractual assignment provisions.

In this Insight, first published in the March 2025 edition of the NEC Newsletter, Shy Jackson considers the topic of the “battle of the forms” in the context of a recent Scottish case, Caledonia Water Alliance v Electrosteel Castings, where the parties each provided their own standard terms and conditions, but it was held that the applicable terms were governed by the Framework Agreement.

The government has published its Response to the Grenfell Tower Inquiry’s Phase 2 report. This Insight takes a closer look at the Response focusing on some of the major reforms the government plans to make (for the full detail of the reforms, please refer to the Response) and the timeframes for such actions.

On 10 February 2025, the Development Bureau (“DEVB”) issued a suite of model adjudication documents (“Model Documents”), including a set of model adjudication rules (“Model Rules”). This suite of Model Documents is not issued so as to be binding or operative in their own right. Rather, they are issued as guidance (perhaps strong guidance) for the various entities who will apply to Government to be recognised as approved adjudicator nominating bodies, “ANBs”, for the purposes of the Construction Industry Security of Payment Ordinance (Cap. 652) (“Ordinance”). Although it remains uncertain to what extent the Model Documents will be adopted by nominating bodies, the Model Documents offer a preview of how the Ordinance might function when it comes into operation on 28 August 2025.