Construction payment in Hong Kong

Hong Kong's Security of Payment Ordinance sets a statutory payment and adjudication regime for construction. Payment claims and payment responses run to defined deadlines, pay-when-paid is prohibited, and there is no VAT or GST to account for on a valuation.

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10 guides for Hong Kong

Hong Kong Payment claims under the Security of Payment Ordinance in Hong Kong The payment claim is the document that starts the statutory clock under Cap. 652. Get the interim valuation into it correctly and the response and due date follow. 6 min read Hong Kong The payment response and the thirty day rule under Cap. 652 Under the Security of Payment Ordinance the paying party has thirty days to respond to a payment claim. What the response must say, and what happens if it does not come. 6 min read Hong Kong Valuing variations for the payment claim in Hong Kong Instructed change under HKIA and government GCC contracts belongs in the payment claim for the period it is valued. How to get variations priced and into the claim on time. 6 min read Hong Kong Retention on Hong Kong contracts and the payment claim Retention is deducted on the payment claim and released against milestones under HKIA and government GCC contracts. How to show it so the net claimed figure is right. 6 min read Hong Kong No VAT in Hong Kong: why the certified amount is gross and net Hong Kong has no VAT or GST, so a payment claim carries no tax line. The certified amount is the sum that moves. What that simplifies for the quantity surveyor. 5 min read Hong Kong Cash flow forecasting on the Hong Kong payment cycle Under Cap. 652 the payment response comes at thirty days and payment falls due inside sixty. Building a cash flow forecast round those calendar day dates. 6 min read Hong Kong Closing the final account on a Hong Kong contract The final account settles measured work, variations, and retention on HKIA and government GCC contracts. How to close it cleanly with no tax line to reconcile. 6 min read Hong Kong Extension of time and delay notices on Hong Kong contracts HKIA and government GCC contracts require notice of delay within set periods. How the quantity surveyor supports an extension of time claim with records that hold. 6 min read Hong Kong Completion certificates and taking over on Hong Kong contracts The completion certificate on HKIA and government GCC contracts starts the defects period and the first retention release. What the quantity surveyor watches for. 5 min read Hong Kong Counting the days under the Security of Payment Ordinance in Hong Kong Cap. 652 counts the payment cycle in calendar days, thirty for the response and sixty for payment, while adjudication runs on fifty-five working days. Getting the count right. 6 min read

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