Ingenieur Vol 78 ingenieur 2019 apr (2) | Page 19

The entire CIPAA process takes about 3.5 to 5 months. A claim under CIPAA 2012 can be made during the course of the project or after the completion of the project works. This duration is short when compared with court litigation or arbitration. However, it is generally a documents- only proceeding and as such, a party who wishes to commence CIPAA proceedings should keep good documentary records to support its payment claim. One of the appealing features of the CIPAA process is that the Courts have ruled that the defending party, also known as the non-paying party, shall not be entitled to launch a counter- claim against the claimant that is more than the amount claimed by the claimant in the CIPAA proceeding. At the very best, the defending party can only zerorise the claimant’s claim through offsets or cross claims. For example, Contractor X claims for RM500,000.00 pursuant to an Architect’s Payment Certificate. Employer Y disputes the claim and states that it is entitled to   liquidated and ascertained damages (LAD) of RM800,000.00 and counterclaims for RM300,000.00 against Contractor X. Even if the adjudicator finds that Employer Y’s defence is valid and it is entitled to the deduction of LAD, the adjudicator cannot award the RM300,000.00 against Contractor X. The most the adjudicator can decide is that Contractor X is not entitled to any money from Employer Y. The chart below briefly shows you the process of a CIPAA proceeding from the filing of a Payment Claim until the delivery of the adjudication decision by the Adjudicator. PAYMENT CLAIM Payment Response Notice of Adjudication Adjudication Response Adjudication Claim Appointment of Adjudicator Adjudication Reply DELIVERY OF DECISION 17