Adjudication and Security of Payment Ordinance (Cap. 652) (“SOPO”) - Hong Kong

At Alternative Logic, we specialize in providing expert support for resolving construction disputes under Adjudication and Security of Payment Ordinance (Cap. 652) (“SOPO”) in Hong Kong. With the SOPO coming into effect on 28 August 2025, we empower construction professionals to navigate its requirements effectively, ensuring compliance, clarity, and successful dispute resolution.

Our Adjudication and SOPO Services

Adjudication Support:

Adjudication is a key mechanism under SOPO for resolving payment disputes promptly and cost-effectively. We provide:

Comprehensive preparation of adjudication submissions, including supporting evidence and detailed analysis.
Expert advice on responding to adjudication claims to ensure compliance with statutory timelines.
Strategic guidance on selecting adjudicators and managing the adjudication process efficiently.

Security of Payment Compliance:

We assist clients in understanding and complying with SOPO requirements, including:

Proper issuance of payment claims and payment responses within statutory deadlines.
Ensuring payment provisions in contracts align with SOPL principles.
Avoiding "pay-when-paid" clauses and other non-compliant contract terms.

Claims Preparation:

We help clients prepare robust payment claims, ensuring they meet SOPO standards and include all necessary documentation, such as:

Supporting evidence for work completed or services rendered.
Calculations for claimed amounts, including variations and disputed items.

Adjudicator Decisions:

We provide guidance on implementing or challenging adjudicator decisions, ensuring clients understand their rights and obligations under the SOPO framework.

Training and Advisory:

We deliver tailored training sessions to ensure construction professionals are fully prepared for the implementation of SOPO. This includes:

Understanding the adjudication process.
Preparing payment claims and responses.
Practical steps to align contracts and project workflows with SOPO requirements.

Resolving Payment Disputes Promptly:

Under SOPO, adjudication provides a fast-track resolution process for payment disputes. We guide clients through the process to ensure timely decisions and minimize disruptions to project workflows.

Preparing Payment Claims and Responses:

We assist contractors, subcontractors, and consultants in preparing compliant payment claims and responses that meet SOPO requirements. This includes accurately documenting work completed, variations, and other entitlements.

Avoiding Non-Compliance Risks:

SOPO introduces strict deadlines and compliance requirements. We help clients avoid penalties and disputes by ensuring contracts, payment processes, and documentation align with the legislation.

Implementing Adjudicator Decisions:

Adjudicator decisions are binding under SOPO unless overturned by arbitration or litigation. We provide strategic advice on implementing decisions or challenging them through appropriate legal channels.

Enforcing Payments:

We assist clients in enforcing adjudication awards to secure payments owed, leveraging the legal protections provided by SOPO.

Improving Contractual Practices:

SOPO prohibits certain practices, such as "pay-when-paid" clauses. We help clients review and revise their contracts to ensure full compliance while maintaining fair and effective payment terms.

Readiness for SOPO Implementation

With the Security of Payment Ordinance (Cap. 652) (“SOPO”) taking effect on 28 August 2025, it is essential for construction professionals in Hong Kong to prepare for its requirements. At Alternative Logic, we provide:

Contract Reviews: Ensuring existing contracts comply with SOPO provisions and identifying areas for improvement.
Process Alignment: Helping clients establish internal processes for issuing and responding to payment claims, managing adjudications, and enforcing payments.

At Alternative Logic, we combine legal knowledge, dispute resolution expertise, and practical industry experience to help our clients navigate the complexities of SOPO and adjudication. Whether you need assistance with payment claims, adjudication submissions, or SOPO compliance, we provide reliable and effective support to protect your interests and secure successful outcomes.

Prepare for SOPO with confidence—partner with Alternative Logic for expert guidance and tailored solutions.