Construction Industry Payment and Adjudication Act 2012 (CIPAA) & Beyond
3 May 2012
The Construction Industry Payment and Adjudication Act 2012 (CIPAA) has finally been passed. The construction industry themselves, namely the Construction Industry Development Board (CIDB) and the Master Builders Association Malaysia (MBAM) had been pushing the government to enact this piece of legislation since 2003. Malaysia has followed in the footsteps of the United Kingdom, Australia, New Zealand and Singapore in introducing the concept of statutory adjudication to the construction industry to resolve payment disputes. The aim is to hurry along cash flow and facilitate payment in the construction industry. Adjudication is intended to be a simple and fast process that promotes the ‘pay now, argue later’ policy. The Act applies to all construction contracts made in writing and that relates to construction work carried out wholly or partly within the territory of Malaysia. A statutory right has been created for unpaid parties to demand for payment for work done.
the Construction Industry Payment and Adjudication Act 2012 (CIPAA) and seeks to discuss its ramifications to the construction industry. There will also be an opportunity to engage with the speakers during the Q&A session.