The Department of Justice on Wednesday said it has issued a policy statement to incorporate mediation clauses in government contracts. Officials said the statement sets out the government's stance on promoting the use of mediation to resolve disputes. Speaking at a Legal Week event, Secretary for Justice Paul Lam encouraged people to seek mediation when disputes arise, before resorting to arbitration or litigation. "The government will incorporate mediation clauses in all future government contracts, and departure from that policy will need to be justified by exceptional circumstances, for example the existence of an inconsistent statutory provision," he said. "Through this policy, we do not only aim at ensuring that contractual disputes involving the government may be resolved in a flexible, economical and time-saving manner. "We also hope that with the government taking the lead, the policy will also encourage the private sectors to follow suit."
