In a significant development for dispute resolution practices, the Department of Justice (DoJ) has introduced new regulations requiring mediation clauses in all government contracts. This move aims to encourage parties involved in contractual agreements to first seek mediation before considering arbitration or legal proceedings. The policy, which became effective recently, is part of an ongoing effort to foster a culture that prioritizes peaceful and efficient conflict resolution.

The DoJ has also released the "Hong Kong Special Administrative Region Mediation Rules (2025 Edition)," ensuring that these guidelines do not interfere with the existing "Construction Mediation Rules (1999 Edition)." By implementing these changes, the government hopes to streamline the process of settling disputes while maintaining respect for established procedures. The initiative follows the announcement of a Policy Statement on the Incorporation of Mediation Clauses in Government Contracts last November 6th. This statement laid out the framework for integrating mediation as a primary method for resolving conflicts within government contracts.

This shift towards prioritizing mediation is expected to influence private organizations as well. The DoJ anticipates that many businesses will adopt similar clauses in their own contracts, promoting a broader acceptance of the "mediate first" approach. Such a cultural change can lead to more harmonious business relationships and quicker resolutions, ultimately benefiting all parties involved. Embracing mediation not only enhances efficiency but also promotes fairness and cooperation in resolving disputes, fostering a healthier and more collaborative business environment.