Construction Industry Payment and Adjudication Act 2012 comes into operation in Malaysia

Adjudication is now a well-established method of resolving disputes in the construction field in the UK, Australia, New Zealand and Singapore. In 2012, Malaysia followed this lead by passing an act intended to introduce adjudication into Malaysia. This was the Construction Industry Payment and Adjudication Act 2012 (CIPAA).

There has been some delay in CIPAA coming into operation but the minister of works has now approved suitable regulations and an exemption order to accompany CIPAA, and the act came into operation on 15 April 2014.

CIPAA introduces a system that is in many ways more straightforward than that used in the UK. There is no provision for payment notices, pay-less notices and the like; instead, a party who considers itself to be unpaid on a construction contract may serve a payment claim…

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