HK requires mediation clauses in government contracts

The new policy takes effect starting February 12.

A new policy mandating mediation clauses in government contracts officially came into effect today, reinforcing a “mediate first” approach to dispute resolution.

Under the new provisions, contracting parties must attempt mediation before escalating disputes to arbitration or litigation, said the Department of Justice.

It also announced the promulgation of “The Government of the Hong Kong Special Administrative Region Mediation Rules (2025 Edition).”

The department clarified that these new rules would not override the existing “Government of the Hong Kong Special Administrative Region Construction Mediation Rules (1999 Edition).”

The policy stems from a statement issued on November 6, 2024, advocating for the inclusion of mediation clauses in government contracts.

The DoJ expects private organisations to adopt similar clauses, strengthening the “mediate first” approach.