Construction Adjudication In Malaysia: Faster And Cheaper Dispute Resolution

The real estate market and the construction industry are interrelated, with improvements and progress in one having a positive impact on the other. The introduction of the Construction Industry Payment and Adjudication Act 2012 ("CIPA Act" or "Act") represents a significant development in the construction industry. It is hoped by the government and the stakeholders of the construction industry that improvements to cash flow and payment disputes within the construction industry will result in fewer delays and abandoned projects, as well as better quality properties and more affordable prices.

The CIPA Act came into force on 15 April 2014. It is stated in the CIPA Act that its objects are to "facilitate regular and timely payment, to provide a mechanism for speedy dispute resolution through adjudication, to provide remedies for the recovery of payment in the construction industry and to provide for connected and incidental matters."