Adjudication is now a well established method of resolving
disputes in the construction field in the UK, Australia, New
Zealand and Singapore. In 2012, Malaysia followed this lead by
passing an Act intended to introduce adjudication into Malaysia.
This was the Construction Industry Payment and Adjudication Act
2012 ("CIPAA").
There has been some delay in CIPAA coming into operation but the
Minister of Works has now approved suitable Regulations and an
Exemption Order to accompany CIPAA and the Act came into operation
on 15 April 2014.
CIPAA (the full text of which is available at
www.klrca.org.my/rules/adjudication) introduces a system which is
in many ways more straightforward than that used in the UK. There
is no provision for payment notices, pay less notices and the like;
instead, a party who considers itself to be unpaid on a
construction contract may serve a Payment Claim. Unless that claim
is admitted within 10 working days, the unpaid party has the
