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CIPAA 2012 Case Law Updates
Recommencing CIPAA Proceeding after the Adjudication Decision is being Set Aside?
The enactment of Construction Industry Payment and Adjudication Act 2012 allows the Contractor to recover payment from Employer speedily. In exceptional case, a CIPAA Adjudication Decision could be set aside under Section 15 of CIPAA 2012 where the Adjudicator had committed the following error: Section 15 of CIPAA 2012: Improperly procured adjudication decision An aggrieved party may apply to the High Court to set aside an adjudication decision on one or more of the following grounds: (a) the adjudication decision was improperly procured through fraud or bribery; (b) there has been a denial of natural justice; (c) the adjudicator has
Ambit of CIPAA 2012 / “Construction Work” is to be construed widely & expansively
The enactment of Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012) is intended to provide remedies for the recovery of payment in the construction industry. However, the ambit of CIPAA 2012 is not merely restricted to the construction work in traditional sense. Section 4 of CIPAA 2012 defines ‘construction work’ as: ‘construction work’ means the construction, extension, installation, repair, maintenance, renewal, removal, renovation, alteration, dismantling, or demolition of: (a) Any building, erection, edifice, structure, wall, fence or chimney, whether constructed wholly or partly above or below ground level; (b)Any road, harbour works, railway, cableway, canal or aerodrome; (c)Any drainage,
“Loss and Expense” Claim in CIPAA 2012
It is widely thought that a ‘loss and expense’ claim arises out of the employer’s delay is not claimable under CIPAA as a “loss and expense” claim is often regarded as special damages and not a payment for work done or services rendered claimable under CIPAA. In this case, the Kuala Lumpur High Court of Malaya clarified that an Unpaid Party / Claimant may claim for loss and expense arising from delays beyond its control in a CIPAA Adjudication Proceeding. Syarikat Bina Darul Aman Berhad & Anor vs Government of Malaysia [2017] MLJU 2381 | [2017] MLJU 673 | [2017] 1
Setting Aside of CIPAA 2012 Adjudication Decision by the Claimant / Unpaid Party
The enactment of Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012) allows the contractors / consultants to recover construction outstanding payment and resolve payment dispute speedily. However, there were cases where the Contractor’s / Consultant’s claims being wrongfully dismissed by the Adjudicator. In such scenario, it is previously thought that after the Unpaid Party’s / Claimant’s claim is dismissed by the Adjudicator, the Unpaid Party / Claimant can only proceed to recover the payment by commencing arbitration proceeding / court litigation, which often time could be very expensive and time-consuming. In this case, the High Court clarified and held
CIPAA Adjudication Decision can only be set aside if the Breach of Natural Justice is Material and Decisive
A CIPAA Adjudication Decision is binding on the parties unless it is set aside pursuant to Section 13 of Construction Industry Payment and Adjudication Act 2012 (CIPAA), Under Section 15 of CIPAA, a CIPAA Adjudication Decision can be set aside if: (a) the adjudication decision was improperly procured through fraud or bribery; (b) there has been a denial of natural justice; (c) the adjudicator has not acted independently or impartially; or (d) the adjudicator has acted in excess of his jurisdiction. In this case, the Court held that not all allegation of breach / denial of natural natural justice can
All you need to know about CIPAA 2012
Procedure for CIPAA 2012 Adjudication Proceeding
Table of Contents 80- 81 Working Days CIPAA takes 80 – 95 working days to complete Yes, you read it right. CIPAA 2012 only takes about 80 – 95 working days to complete. Before the enactment of Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012) which came into effect on 15.04.2012, the parties have to go through the lengthy and time-consuming process of arbitration or court proceeding to recover outstanding professional fees or payment for work done. As a result, the cash flow will be gravely affected and often time, the Contractor / Consultant will be short-changed and pressured into
CIPAA 2012: The Ultimate Guide to CIPAA 2012 Construction Adjudication Proceeding
Table of Contents What is CIPAA 2012 Construction Industry Payment and Adjudication Act 2012 ? CIPAA 2012 is the abbreviation of an act of Parliament / legislation known as Construction Industry Payment and Adjudication Act 2012 enacted on 15th April 2014. CIPAA Act 2012 introduces the “Statutory CIPAA Adjudication” dispute resolution mechanism to resolve payment disputes. Its principal objective is to facilitate timely payment and ease the cashflow in the construction industry in a speedy and summary Adjudication Process. In the CIPAA Adjudication Proceeding, an “adjudicator” (akin to a judge in court proceeding / arbitrator in arbitration) will be appointed to