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CIPAA Payment Claim Adjudication Consultancy
(operated by Vincent Tan Consultancy)
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CIPAA Construction Payment Claim & Recovery Consultancy Services
Solutions for Payment Recovery
Vincent Tan CIPAA Consultancy Services offers the consulting services to help the Owners, Consultants, Contractors, Sub-Contractors and Suppliers to recover payments from the non paying party. Contact us to learn more.
About Our Services
Construction Payment Recovery Consultancy
via CIPAA
To act on behalf of the Owners, Consultants, Contractors, Sub-Contractors and Suppliers to handle and accomplish the whole process of CIPAA which includes preparation and submission of payment claim, filing of Notice of Adjudication, preparation and submission of Adjudication Claim, preparation and submission of Adjudication Reply, follow up on all the administrative matters and advise on all contractual issues during the CIPAA proceedings untill the delivery of the Adjudication Decision by the appointed Adjudicator.
Vincent Tan
Academic & Professional Qualification
Ass. Member, CIArb UK
Inc. Member, CIOB UK
Pro Member, RICS UK
G. Member, RISM MY
Prov Member, LJBM MY
BSc (Hons) QS, UK
Accredited Adjudicator
Fellow, AIADR MY
About Construction Industry Payment Adjudication Act 2012 (CIPAA)
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Application of CIPAA
Statutory adjudication is compulsory (except those exempted by the Act) whereby any party to a construction contracts has the right to resort to adjudication & no contracting out of the Act is allowed under the Act.
Reference to CIPAA only restricted to construction disputes with regard to payment for work done & services rendered. However, the Parties are to extend the jurisdiction of the adjudicator (after appointment) to decide on any other matter arising from the construction contract.
CIPAA covers all written construction contracts (carried out wholly or partly in Malaysia) which comprising of buildings, oil & gas, petrochemical, telecommunication, utilities, infrastructure, supply contracts & consultancy contracts.
The Act applies to both Public & Private Sector except an individual owner who erects a building < 4-storeys high intended for own use.
Intention of CIPAA
The Construction Industry Payment and Adjudication Act (CIPAA) 2012 has come into operation effective 15 April 2014 to address the cash flow problems related to payment for work done and services rendered under the express terms of a construction contract.
It allows the Claimant (who is owed monies under a construction contract) to have the disputes resolved with the Respondent in a quick & cheap manner & it is a mandatory statutory process (can be commenced at any time whether during or after project completion) that does not require the agreement of the Parties’ to commence & overrules over any contractual agreements to the contrary.
The proceedings is simpler, cheaper & faster vs arbitration and/or litigation and is a private & confidential process.
The adjudicator must deliver his decision < 45 working days from the Adjudication Response or Adjudication Reply (whichever is later), or the period prescribed for the submission of Adjudication Response (if no Adjudication Response is received), unless this period is extended mutually by the Parties, failing which his decision will be void and no fees or expenses can be draw by the Adjudicator.
The Adjudication Decision is temporarily binding pending the eventual resolution by arbitration, litigation or agreement between the Parties. Upon the delivery of the Adjudication Decision, the losing party shall pay the adjudicated amount unless the Adjudication Decision has been stayed or set aside by the High Court if fraud or bribery is reported, the adjudicator is in denial of natural justice; adjudicator not independent or impartial and/or the adjudicator has acted in excess of his jurisdiction.
However, if there is no challenge to the Adjudication Decision then it is final.
Process Flow of CIPAA
Step 1: Making & Responding to a Payment Claim
First, the Unpaid Party to serve a Payment Claim on the Non-Paying Party. After which, the Non-Paying Party may either pay up or serving a Payment Response < 10 working days otherwise, it is deemed that the entire Payment Claim is disputed & either party may refer to CIPAA.
Step 2: Initiation of Adjudication
CIPAA is initiated by the serving of a written Notice of Adjudication. The Claimant shall < 7 days after serving a Notice of Adjudication (containing the particulars & documents) register with the Director of KLRCA & pay a non-refundable registration fee follows the KLRCA's Adjudication Rules & Procedure.
Step 3: Nomination of Adjudicator
Appointment of adjudicator will be proceeded after (& not before) the Claimant served a valid Notice of Adjudication to the Respondent & the Parties are free discuss on the appointment of the adjudicator < 10 working days from the Notice of Adjudication otherwise, either or both Parties may request the Director of KLRCA to appoint < 5 working days from the date of receipt of the request.
Step 4: Appointment of Adjudicator
After being notified by KLRCA, the selected adjudicator are free to either accept or refuse the appointment. If accepted, the selected adjudicator shall submit a written declaration to the Director of KLRCA & deliver a copy of his terms of appointment & fees to be paid by the Parties.
The adjudicator must < 14 days of his acceptance of the appointment issue a direction ordering the parties to deposit with KLRCA the reasonable proportion of the adjudicator’s fees & expenses, any Government taxes and all administrative fee payable to KLRCA.
Step 5: Adjudication Claim & Response
The Claimant is required to serve an Adjudication Claim (containing supporting documents) on the Respondent & the adjudicator < 10 working days from the date of receipt of the acceptance of appointment by the adjudicator. The Claimant shall < 7 working days after serving the Adjudication Claim deliver a copy of the Adjudication Claim to KLRCA (supporting documents not required).
After received the Adjudication Claim, the Respondent shall then serve on the Claimant & the Adjudicator an Adjudication Response < 10 working days in respond to the Adjudication Claim (containing supporting documents). The Respondent shall < 7 working days after serving the Adjudication Response deliver a copy of the Adjudication Response to KLRCA (supporting documents not required).
After receipt of the Adjudication Response, the Claimant may serve an Adjudication Reply < 5 working days with a copy to the Director of KLRCA (to be served < 7 working days after serving the Adjudication Reply).
Step 6: The Conduct of Adjudication Proceedings
An adjudicator is authorized under CIPAA to conduct the adjudication following the rules of “natural justice”, provisions of CIPAA & the Adjudicator’s Code of Conduct under KLRCA's Adjudication Rules & Procedure.
Step 7: Adjudication Decision
The Adjudicator shall deliver his decision < 45 working days from the service of the Adjudication Response or Adjudication Reply, whichever is later, or 45 working days from the expiry of the period for the service of the Adjudication Response (if no Adjudication Response is received), or the extended period agreed by the Parties otherwise it will be treated as void.
