INGENIEUR
CIPAA 2012: AN OVERVIEW
By Lam Wai Loon and Serene Hiew
Harold & Lam Partnership
T
he Construction Industry Payment &
Adjudication Act 2012 (“CIPAA 2012”),
for a fast, effective and cheaper option
to resolve payment disputes arising from a
contract for construction related works done
and services rendered, was introduced by way of
an Act of Parliament in 2012. This mechanism
is available to work and service providers in the
construction industry (including contractors, sub-
contractors, suppliers, architects, engineers,
quantity surveyors and the like) provided always
that there is a written construction contract and
the construction project is within the territory of
Malaysia. The main idea behind the introduction
of CIPAA 2012 is to help alleviate the prevailing
problems of non-payment or delayed payments
and under- cer tification in the Malaysian
construction industry. Although most disputes in
the construction industry revolve around payment
issues, there are some basic requirements that a
party seeking to resort to the mechanism would
have to consider before commencing a CIPAA
process namely:-
● ●
Is there a written construction contract?
● ●
Are there payments for work done —
certified or uncertified — left unpaid?
● ●
Are these payments already due (to refer to
period for honouring certificate)?
● ●
Are there supporting documents to verify
the claim?
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VOL
2019
VOL 78
55 APRIL-JUNE
JUNE 2013