NEC users in Hong Kong need to plan for new security-of-payment law

NEC contracts entered after 28 August 2025 in Hong Kong will be subject to the region’s new Construction Industry Security of Payment Ordinance, which is aimed at improving cash flow certainty in the construction industry. It introduces mandatory payment terms, adjudication mechanisms and prohibition of conditional payment clauses, ensuring timely and fair payments for contractors and subcontractors.

The introduction of the new law aligns well with the collaborative principles of NEC contracts, which emphasise proactive risk management and dispute resolution. NEC users will benefit from streamlined payment processes, reduced risk of payment disputes and better project delivery. Furthermore, the adjudication provisions under the new law provide a fast-track resolution process that complements NEC’s emphasis on early warning and proactive issue resolution.

As the industry adapts to the changes, it is crucial for NEC users in Hong Kong to review and align their contract administration practices with the new requirements. We recommend engaging with legal and contractual experts to ensure compliance and maximise the benefits of both NEC contracts and the new legislation.

New W and Z clauses for Singapore

We are pleased to announce publication of new W and Z clauses for use with the NEC4 Engineering and Construction Contract (ECC) in Singapore. Jointly developed by Singapore’s Building and Construction Authority and NEC, the clauses provide a structured framework tailored to the local regulatory and contractual landscape.

The W clauses are dispute resolution options incorporating local dispute resolution protocols and practices. The Z clauses are additional conditions of contract catering to project-specific requirements, taking into consideration public sector procurement rules and local industry practices.

The new clauses aim to enhance contract clarity, risk allocation and compliance with Singapore’s construction regulations. We encourage NEC users to review these clauses to ensure alignment with industry best practices.

TSC and DBOC Service Manager Accreditation

There is a growing demand for NEC4 Term Service Contract (TSC) and NEC4 Design, Build and Operate Contract (DBOC) service manager accreditation in Hong Kong. To meet this need, NEC and the Hong Kong Construction Industry Council will be offering more flexible time slots for training in the second half of 2025. 

For more information on service manager accreditation, visit neccontract.com/products/getaccredited