Construction Industry Payment and Adjudication Act 2012
Tag: construction contract
CIPAA (Construction Industry Payment and Adjudication Act 2012) is a legislation enacted on 15th April 2014 by the Parliament of Malaysia to resolve the construction payment dispute and alleviate the cash flow in the construction industry through the statutory CIPAA adjudication process.
The mechanism of CIPAA offers ‘rough justice’ to the Claimant and it is often described as ‘pay now, argue later’. This is evident from the statistic provided by AIAC in 2017 that a whooping 89.28% of the CIPAA Adjudication Decision is awarded in favour of the Claimant.
But what are the requirements to launch a CIPAA claim?
MIR Valve Sdn Bhd v TH Heavy Engineering Bhd and other cases  7 MLJ 796
The meaning of construction work and construction consultancy work under CIPAA shall be construed widely.
One shall look at the functional purpose of the work and not the form of the work..
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