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
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
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.
Syarikat Bina Darul Aman Bhd & Anor v Government of Malaysia  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.
Syarikat Bina Darul Aman Berhad & Anor vs Government of Malaysia  MLJU 2381
Previously, it is often thought that a ‘loss and expense’ claim arises out of the employer’s delay is not claimable under CIPAA as it is regarded as special damages.
In this case, the High Court clarified that an Unpaid Party / Claimant may claim for loss and expense arising from delays beyond its control in a CIPAA Adjudication Proceeding.
ACFM Engineering & Construction Sdn Bhd v Esstar Vision Sdn Bhd & Another Case  1 LNS 756 When an
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