Tag: construction industry payment and adjudication act 2012

Construction Industry Payment and Adjudication Act 2012
("CIPAA")

Tag: construction industry payment and adjudication act 2012

CIPAA Consulting News & Update Background

CASE UPDATE: Recommencement of CIPAA Proceeding if the Adjudication Decision is Set Aside

Wong Huat Construction Co v Ireka Engineering & Construction Sdn Bhd [2018] 7 MLJ 659

If an Adjudication Decision is successfully set aside pursuant to Section 15 of CIPAA, all parties will be restored to their original positions as though the earlier Adjudication did not take place.

As a result, the Unpaid Party / Claimant is entitled to re-commence a fresh CIPAA Proceeding instead of arbitrating / litigating the matter.

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CIPAA Consulting News & Update Background

CASE UPDATE: Adjudicator has Power to Grant Pre-Award Interest in CIPAA

Milsonland Development Sdn Bhd v Macro Resources Sdn Bhd [2017] 8 MLJ 708

In this case, the High Court clarifies that an Adjudicator has the power to grant pre-award interest pursuant to Section 25(O) of CIPAA.

For completion, pre-award Interest, as the name suggests, refers to the interest calculated from the date of the supposed due date of payment until the date of Adjudication Decision.

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CIPAA Consulting News & Update Background

CASE UPDATE: An Aggrieved Claimant in CIPAA Proceeding may Set Aside an Adjudication Decision

Syarikat Bina Darul Aman Bhd & Anor v Government of Malaysia [2017] MLJU 2381

It is previously thought that when the Claimant’s claim is dismissed by the Adjudicator, the Claimant can only proceed to commence arbitration / court litigation to recover the payment, which often time could be more expensive and time-consuming.

In this case, the High Court held that in a case where the Claimant is successful only in part of its claim or the whole claim is dismissed, the Claimant may apply to set aside the Adjudication Decision under Section 15 of CIPAA.

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