Introduction
On 15 April 2014, the Construction Industry Payment and
Adjudication Act 2012 ("CIPAA 2012" or "Act")
came into force, almost 2 years after it was gazetted by the
Government in June 2012. It was hoped that CIPAA 2012 would be the
solution to the age old cash-flow problems in the construction
industry. The long title of the Act states that the Act aims 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."
There has been a steady increase in the number of payment
disputes referred to adjudication under CIPAA 2012. The Kuala
Lumpur Regional Centre for Arbitration ("KLRCA") is the
adjudication authority responsible for administering the Act; and
KLRCA has disclosed that a total of 29 matters were registered in
2014 and 53 matters have been registered up to 10
