cipaa 2012 – Malaysian CIPAA

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

12/02/2021 No Comments

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

30/01/2018 No Comments

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,

30/11/2017 No Comments

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

30/09/2017 No Comments

No positive award against Unpaid Party in CIPAA 2012! Non-Paying Party can only ‘zerorize’ claim

The introduction of Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012) allows an aggrieved contractor or consultant (known as Unpaid Party) to recover outstanding payment speedily against the Employer / Contractor (known as Non-Paying Party). In response to a CIPAA claim, the Respondent / Non-Paying Party may raise counterclaims / deduction / set-off to defend against the Claimant’s / Unpaid Party’s claim. What happen if the Respondent/ Non-Paying Party /Employer has a greater counterclaims / deductions / set-off against the Claimant / Unpaid Party? Can the Respondent / Non-Paying Party be allowed a positive claim against the Claimant /

17/11/2016 No Comments

CIPAA 2012: The Ultimate Guide to CIPAA 2012 Construction Adjudication Proceeding

Recommencing CIPAA Proceeding after the Adjudication Decision is being Set Aside?

Ambit of CIPAA 2012 / “Construction Work” is to be construed widely & expansively

Setting Aside of CIPAA 2012 Adjudication Decision by the Claimant / Unpaid Party

No positive award against Unpaid Party in CIPAA 2012! Non-Paying Party can only ‘zerorize’ claim

Contact Us

Telephone

Email

WhatsApp