View PDF 28th March 2025ISSUESSection 35 of the Construction Industry Payment and Adjudication Act 2012 (“CIPAA 2012”) prohibits conditional payment clauses and such clauses are rendered void under Section 35(1)…
View PDF 27th November 2024 ISSUES It is common for a respondent to raise a set off or crossclaim as a defence to a Payment Claim issued under Construction Industry…
View PDF 23rd October 2024 ISSUES There is no prohibition to initiate adjudication proceedings against a sole proprietor under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA 2012”). Sole…
View PDF 22nd May 2024 ISSUES It is not uncommon for the losing party to file an application to set aside an adjudication decision and/or apply for it to be…
View PDF 24th April 2024ISSUESTo trigger direct payment under section 30 of the Construction Industry Payment and Adjudication Act 2012 (“CIPAA 2012”), the successful Claimant will have to serve a…
CIPAA 2012 : Limitation to an Adjudicator’s Jurisdiction
Anas Construction Sdn Bhd v JKP Sdn Bhd & Another Appeal [02(F)-3-01/2023(P)/ 02(F)-4-01/2023(P)]View PDF 27th March 2024ISSUESIf an Adjudicator made a decision based on contract provision not cited or relied upon by the Appellant in the Payment Claim or Adjudication Claim, would…
CIPAA 2012 : Direct Payment from Principal and Judicial Management Order
Concrete Empire Sdn Bhd v Turnpike Synergy Sdn Bhd [WA-24C-116-06/2022]View PDF 22nd November 2023ISSUESWhen the losing respondent does not make payment for the Adjudicated Sum under the Adjudication Decision to the claimant, the claimant may request for direct payment from…
On Demand Performance Guarantee: Unconscionability and Breach of the Underlying Principle Contract
Oxley Rising Sdn. Bhd. v Ssyangyong Engineering & Construction Co. Ltd. And Anor Appeal [W-02(C)(A)-274-02/2022 & W-02(IM)(C)-273-02/2022]View PDF 31st October 2023ISSUESIt is a commonplace in the construction industry for the employer to require the contractor to provide a performance guarantee in the form of a bank…
CIPAA 2012 : “Adjudicated Amount” under Section 30 – Interest and Costs, Included or Otherwise?
Pali PTP Sdn Bhd v Bond M&E Sdn Bhd & Another Appeal [W-02(C)(A)-314-02/2021 / W-02(C)(A)-399-02/2021]View PDF 27th September 2023 ISSUES Where a Principal is ordered to make payment of the “adjudicated amount” pursuant to Section 30 of Construction Industry Payment and Adjudication Act 2012…
CIPAA 2012 : Forbearance, Estoppel and Ouster by Contract
Chua Heng Hong & Ors v S Lite Electrical and Engineering Sdn Bhd & Anor [2023] 1 LNS 335View PDF 30th August 2023ISSUESIf a party has agreed to forbear payment for construction work, can such forbearance be a basis to apply to the Court to stop the said…
View PDF 28th June 2023ISSUESIt is not uncommon for a claimant to initiate more than one adjudication under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA 2012”) in the…
View PDF 31st May 2023 ISSUES Often in a chain of construction contracts, when there is delay to the nominated subcontractor’s works, the delay may translate to a delay in…
View PDF 19th April 2023IssuesThe Federal Court in the case of View Esteem Sdn Bhd v Bina Puri Holdings Bhd [2019] 5 CLJ 479 (“View Esteem”) held that a stay…
View PDF 29th March 2023 Issues When an action filed into court is stayed under Section 10 of the Arbitration Act 2005 for the disputes to be referred to arbitration,…
View PDF 30th December 2022 Previously, the High Court in Sunissa Sdn Bhd v Kerajaan Malaysia & Anor [2020] MLJU 283 (see our update here) decided, amongst others, that Clause…
View PDF 12th May 2021 Issues In Ireka Engineering & Construction Sdn Bhd v. PWC Corporation Sdn Bhd [2020] 1 CLJ 193 and Jack-in Pile (M) Sdn Bhd v. Bauer…
View PDF 23rd December 2020 Issues Section 3 of the Construction Industry Payment and Adjudication Act 2012 (“CIPAA 2012”) provides that CIPAA 2012 does not apply to:- “… a construction…
View PDF 16th December 2020 Issues In Likas Bay Precinct Sdn Bhd v Bina Puri Sdn Bhd [2019] 3 CLJ 499 (“Likas Bay”), the Court of Appeal held that “Armed…
View PDF IntroductionCashflow continuity is of paramount importance to the construction industry. However, contractors are often times faced with issues on payment, or lack thereof, for various reasons. Some contractors…
View PDF Issues As the Construction Industry Payment and Adjudication Act 2012 (“CIPAA 2012”) only have prospective effect, any payment dispute(s) arising from construction contracts execute before the coming into…