Performance bonds between employer and contractor are a common way to revent or resolve disputes in Hong Kong’s construction industry. But careful drafting is paramount to offer protection, says David Boyle
Although since 1997, Hong Kong has been a Special Administrative Region of the People’s Republic of China (PRC), the construction industry practice in relation to the use of performance bonds is similar to that in the UK: both ‘conditional’ bonds in a traditional form and instruments of an ‘on-demand’ nature are regularly used to provide employers with a necessary degree of security in the event of contractor non-performance or insolvency.
