The following is the simplified adjudication rules that a construction contract in Hong Kong is opted to use in relation to payment disputes for construction work done.
A party refers a dispute to adjudication by giving all relevant parties a written notice of adjudication to commence the adjudication process. This notice contains:
a) The names and addresses of the parties;
b) Nature and brief description of the dispute;
c) The redress to be sought;
d) Names of three proposed adjudicators for selection by the other party.
- The parties select an adjudicator within four business days after delivery of the notice of adjudication. By a written agreement, the parties may consolidate two or more adjudications under the same construction contract having the related matters of disputes.
- If the parties cannot come to an agreement on an adjudicator within the four business days after delivery of the notice of adjudication, the party requesting adjudication requests the Hong Kong Institute of Construction Adjudicators to appoint an adjudicator. Upon receipt of the request, the Hong Kong Institute of Construction Adjudicators appoints an adjudicator within 5 business days.
- Within seven business days of the appointment of an adjudicator, the referring party serves the dispute in writing to the Adjudicator and copies to all relevant parties to the dispute including the documents the party intends to rely upon in the dispute and copies of all such documents relevant to the dispute.
- The responding party serves in writing to the Adjudicator within seven business days of the date of the referral notice and copies to all relevant parties to the dispute a written response to the referral notice including the contentions on which it relies and any material the responding party wishes the Adjudicator to consider.
- Upon receipt of the referral notice and written response, the Adjudicator informs within 5 business days all relevant parties to the dispute the procedural steps to be followed by the parties.
- The Adjudicator may decide and consider oral evidence or representations by the parties made in the assistance of any adviser or representative. The Adjudicator considers all relevant information served by the parties to the dispute and reaches a decision within 20 business days after the receipt of the written response, extendable up to 30 business days by the Adjudicator.
- The Adjudicator delivers a copy of the decision in writing and with reasons to each of the parties. The Adjudicator may correct an issued decision to remove a clerical or typographical error arising by accident or omission within five days of the delivery of the decision to the parties.