Gov’t implements mediation policy in contracts

Contract parties have to agree to use mediation in dispute settlement first before resorting to arbitration.

A policy mandating mediation clauses in government contracts has come into effect.

According to the Department of Justice (DoJ), these clauses outline that contract parties have to agree to use mediation in dispute settlement first before resorting to arbitration or litigation.

Additionally, the DoJ promulgated “The Government of the Hong Kong Special Administrative Region Mediation Rules (2025 Edition),” stressing that these shall not affect the operation of “The Government of the Hong Kong Special Administrative Region Construction Mediation Rules (1999 Edition).”

The implementation of mediation clauses follows the issuance of a Policy Statement on the Incorporation of Mediation Clauses in Government Contracts on 6 November last year.

The DoJ said it anticipates that private organisations will make reference to and adopt similar mediation clauses in their contracts, thereby deepening a “mediate first” culture.