International Construction Law Review
HONG KONG’S ALTERNATIVE DISPUTE RESOLUTION REGIME IN THE YEAR OF THE DRAGON
PAUL STARR1
King & Wood Mallesons, Hong Kong
Hong Kong’s construction industry is booming. In 2011, the total gross value of construction works performed by main contractors in Hong Kong was HKD$128.4 billion (approx. US$16.5 billion), a 15.4% increase from 2010.2 Early indications for 2012 are promising, with construction value up 25.2% compared with Q1 of 2011.3 Accompanying this boom, the Hong Kong International Arbitration Centre (“HKIAC”) continues to be a much favoured port of call, not only for those in Hong Kong arbitrating or mediating their disputes, but increasingly so for those doing business in Mainland China. The choice of Hong Kong as a “neutral” venue to resolve disputes by mainland ventures is on the up and up.
I report below on trends in Hong’s ADR regime in the Year of the Dragon: significant legislative change to arbitration in Hong Kong and recent court decisions; the passage of the new mediation Bill and court rules encouraging mediation practice; other developments including Mediation-Arbitration (“Med-Arb”) practice. Hong Kong already has an excellent reputation for being a leading ADR centre, and these developments serve to reinforce this.
DEVELOPMENTS IN ARBITRATION
On 1 June 2012, the new Arbitration Ordinance (Cap 609) (the “Ordinance”) marked its first anniversary of operation in Hong Kong. Within the
1 Partner and Practice Leader Hong Kong Dispute Resolution and Infrastructure. With thanks to colleagues Duncan McKay and James McKenzie for their invaluable contributions.
2 Census and Statistics Department, Report on the Quarterly Survey of Construction Output, 4th Quarter 2011.
3 Ibid, 1st Quarter 2012.
Pt 4] Correspondent’s Report—Hong Kong
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