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.