Category

Adjudication

Category

In brief The construction industry faces challenges in enforcing adjudication decisions, limiting its effectiveness outside the UK. Adjudication bonds, emerging from the PFI market, offer a solution by guaranteeing payment of adjudicated sums. These bonds, typically 10-20% of contract value, ensure immediate payment upon noncompliance, reducing the need for lengthy legal proceedings. Successful implementation requires careful drafting and integration into existing contracts. Adjudication bonds incentivize compliance, enhance adjudication’s credibility, and improve project cash flow. This…

Overview and Key Provisions In brief On 27 December 2024, the Construction Industry Security of Payment Ordinance (CISPO) was gazetted, following a nine-year consultation process. This long-anticipated legislation will cover construction contracts entered into on or after 28 August 2025. Similar legislation has been in place for some time in various other jurisdictions, such as Australia, Singapore and the United Kingdom. CISPO seeks to remedy improper payment practices in the construction industry by improving contractual…