Introduction This article aims to provide a full and comprehensive guide to the Malaysia CIPAA (Construction Industry Payment and Adjudication
Construction Industry Payment and Adjudication Act 2012
Author: CIPAA Consulting
What should you really do if you receive a CIPAA Payment Claim, alleging that there is outstanding payment being due and payable? What should you do under the circumstance if you wish to challenge the claim?
This article explores the steps ought to be taken by a Non-Paying Party upon the receipt of a CIPAA Payment Claim (Form 5).
Given the high success rate of a CIPAA claim against the non-paying parties / Respondent, it naturally places enormous pressure and stress on the Respondent upon the receipt of a CIPAA claim.
In this article, we set out to explain the defences a Respondent may put up to defeat a CIPAA claim.
There are 3 types of defences a Respondent may raise: 1. Substantive Challenge 2. Technical Objection 3. Counterclaim / Set-Off
Ever since the implementation of Construction Industry Payment and Adjudication Act 2012 (CIPAA), CIPAA has become a popular alternative dispute resolution to resolve payment dispute. The contractors and consultants will often time resort to CIPAA Adjudication to recover the outstanding payment / fees.
But one may ask what are the benefits / advantages of resorting to CIPAA Adjudication Proceeding compared to arbitration and litigation then?
The CIPAA Adjudication mechanism has the following practical advantages / benefits:
1. Expeditious Process
2. High Success Rate
3. All Conditional Payment Clause is void
4. Direct Payment from Principal
Suspension of Work is not a breach of contract
5. Pay Now, Argue Later!
6. No positive counterclaim from Respondent
Before resorting to mount a CIPAA claim under Construction Industry Payment and Adjudication Act 2012 (CIPAA), one would understandably also want to fully appreciate the costs typically involved in the CIPAA Proceedings.
This article sets out the costs typically involved in CIPAA and explains whether the costs of CIPAA can be recovered by the winning party.
CIPAA Adjudication Proceeding offers a quick and efficient procedure to this problem as the Adjudication Decision can be rendered within 80 – 95 working days and the Winning Party may then enforce the Adjudication Decision and recover the outstanding payment or professional fees.
In this article, we will set out the procedure and the complete guide of the CIPAA Adjudication Proceeding from A – Z: 1. Payment Claim 2. Payment Response, 3. Notice of Adjudication 4. Adjudication Claim, 5. Adjudication Response, 6. Adjudication Reply, 7. Adjudication Decision.
B Cor Geotechnics Sdn Bhd v Panzana Enterprise Sdn Bhd  MLJU 1030 In this case, the High Court confirmed
B Cor Geotechnics Sdn Bhd v Panzana Enterprise Sdn Bhd  MLJU 1030 Upon the delivery of an Adjudication Decision,
Martego Sdn Bhd v Arkitek Meor & Chew Sdn Bhd and Another Appeal  8 CLJ 433 In the most
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