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
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