Govt implements mediation clauses in contracts to streamline dispute resolution

In a significant policy shift, the Department of Justice announced the inclusion of mediation clauses in all government contracts starting Thursday. 

This development aims to facilitate the resolution of disputes through mediation before parties consider arbitration or litigation, marking a proactive approach to conflict management in public sector agreements.

On November 6 of last year, the department released a policy statement advocating for the incorporation of mediation clauses as a standard practice in government contracts.

In conjunction with this initiative, the department also introduced the “HKSARG Mediation Rules (2025)” on Thursday, designed to support the implementation of these clauses. 

These rules outline the procedural framework for mediation proceedings and are intended to work alongside the mediation clause in government contracts.

Secretary for Justice Paul Lam Ting-kwok expressed hope on Facebook that "private organizations would be encouraged to adopt similar mediation clauses in their contracts, thereby fostering a deeper 'mediate first' culture within the community."

(Cheng Wong)