Tag: Payment Claim

Construction Industry Payment and Adjudication Act 2012

Tag: Payment Claim

CIPAA 101 Logo

Received a CIPAA Payment Claim? What should you do?

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).

Read More »
CIPAA 101 | Construction Industry Payment and Adjudication Act 2012

Defending Against a CIPAA Claim

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

Read More »
CIPAA 101 Logo

Procedure for CIPAA Adjudication Proceeding

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.

Read More »
CIPAA Consulting News & Update Background

CASE UPDATE: The Failure to file CIPAA Payment Response does not preclude the raising of New Defences in Adjudication Response

View Esteem Sdn Bhd v Bina Puri Holdings Bhd [2018] 2 MLJ 22
By virtue of the Federal Court’s decision, there is no repercussion to a Non-Paying Party/ Respondent in not filing the Payment Response.

For strategic reason, the Non-Paying Party/Respondent may want to submit a scanty Payment Response or not submitting the Payment Response at all to preserve the element of surprise and ambush the Unpaid Party/Claimant at the Adjudication Response stage, bearing in mind that the Unpaid Party/Claimant only has 5 working days to file Adjudication Reply from the receipt of Adjudication Response.

Read More »
CIPAA Consulting News & Update Background

CASE UPDATE: Non-Paying Party can only ‘zerorize’ claim and will not have a positive claim against Unpaid Party

Tenaga Poly Sdn Bhd v Crest Builder Sdn Bhd  Originating Summons No. WA-24C-44-06/2016
Any set-off, deduction or counterclaim introduced by the Non-Paying Party (such as LAD, rectification costs advance payment) can only operate to ‘zerorise’ the Unpaid Party’s claim.

The Unpaid Party would NOT be made to pay the Non-Paying Party in the CIPAA Proceeding even if the set-off, deduction or counterclaim is greater than the CIPAA Payment Claim amount.

Read More »



Submit your email address above to receive the latest news & updates on CIPAA.

*We do NOT send advertising emails to subscribers.