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ARTICLE · 14 OCTOBER 2022

Malaysian Construction Law: Expeditious Payment Dispute Resolution Through CIPAA 2012

CIPAA 2012 is the acronym of the Act known as the "Construction Industry Payment and Adjudication Act 2012" enacted by the Malaysian Parliament and came into force on 15th April 2014.

JapanReal Estate and Construction

1.What is CIPAA 2012

CIPAA 2012 is the acronym of the Act known as the “Construction Industry Payment and Adjudication Act 2012” enacted by the Malaysian Parliament and came into force on 15th April 2014. The Construction Industry Payment and Adjudication Regulations 2014 and the Construction Industry Payment and Adjudication (Exemption) Order 20141 were both also implemented on 15th April 2014 to complement CIPAA 2012.

CIPAA 2012 is enforced with the aim to provide speedy, timely and cost-effective dispute resolution mechanism in respect of payment disputes in the construction industry. CIPAA applies to all construction contracts in Malaysia except for construction contract of less than four storeys building intended for personal occupation.

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