What is CIPAA?
The Construction Industry Payment and Adjudication Act (CIPAA) 2012 is a Malaysian law designed to tackle the common problem of delayed or unpaid payments in the construction industry. This act safeguards the rights of contractors, subcontractors, consultants, and suppliers, ensuring they receive timely payments for the work completed or materials supplied.
CIPAA provides a fast, cost-effective dispute resolution process through construction adjudication, offering a practical alternative to lengthy litigation or arbitration. If a payment dispute arises, the unpaid party can initiate CIPAA adjudication to resolve the issue quickly. An independent adjudicator will assess the claims and make a legally binding decision within a strict timeframe, helping parties recover owed payments efficiently.
Why Choose Us?
Niche Expertise
.
Reliable Success Record
Trusted Legal Team
Strategic Approach
What Can You Do with CIPAA Decision in Your Favour?
Enforce the Decision
You can apply to the High Court to register the adjudication decision as a court order, enabling you to take legal steps to recover the awarded amount.
Suspend work
If the other party fails to pay after the adjudication decision, you are entitled under CIPAA to temporarily suspend work or reduce the rate of progress—without breaching your contract. This legal right pressures the non-paying party while protecting your position on site. .
Request Direct Payment from the Principal
If you're a subcontractor and the adjudication decision is in your favour, CIPAA allows you to request direct payment from the principal (main contractor’s client). This bypasses the defaulting party and helps you recover your dues faster through a legitimate, legal channel.
File a winding-up petition
If the losing party is unable or refuses to pay the adjudicated amount, you may initiate a winding-up petition against them. This legal action can compel payment or lead to the dissolution of the company due to insolvency.