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Payment has always been a major problem in construction industry. To overcome this problem, a dispute resolution process known as adjudication was introduced in UK and thereafter to Australia, New Zealand and Singapore.

According to the Asian International Arbitration Center (AIAC), dispute cases in construction industry is on the upward trend with more than 700 contention filed last year with total value of RM1.4 billion. Despite our rise in expenditure in construction and infrastructure works which has been a windfall for contractors, the dispute is also on the rise. According to AIAC, the disputes is due to contracts clarity and payment avoidances have tarnished the construction sector growth and aggrieved many parties.

Malaysia’s rising spending of construction and infrastructure works has been a windfall for contractors, but rising disputes due to contracts clarity and payment avoidances have marred the sector’s growth and hurt many parties.

Construction Adjudication is a ‘rough and ready’ dispute resolution process available to almost all parties to construction contracts. It is meant to provide for a swift interim dispute resolution process. Its primary purpose is to provide an interim solution to a dispute in order to maintain cash flow through the supply chain, from the manufacturers of building materials to sub-contractors and eventually to Main Contractors. The adjudication can either be a contractual or statutory procedure.

Followed other countries, Malaysia had enacted the Construction Industry Payment and Adjudication Act 2012 (CIPAA) which will provide statutory adjudication to parties involved in payment disputes. The Act had taken effect since 15th April 2014. There are, till June 2015, more than 100 cases being filed for adjudication in KLRCA. Thus the parties are now able to resolve their payment disputes via statutory adjudication under the Act.


  • Understand The  Procedure Required Under The Act For Statutory Adjudication
  • Understand The Potential Problems That Parties May Encounter During The Process
  • Learn What Are The Obligations And Accountability For Of All Stakeholders
  • Faster Disputes Resolution For Claims And Payment Dispute With CIPA 2012

For brochure and more information please contact Emily at +6088731412 / email

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