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CIPAA Adjudication Process in Malaysia Procedure Flow Chart

CIPAA Payment Claim

1.Payment Claim

3.Notice of Adjudication

2. Payment Response

A Statutory Adjudication under CIPAA 2012 can be initiated by issuing a Payment Claim 

Payment Response

2. Payment Response

3.Notice of Adjudication

2. Payment Response

Upon receiving the Payment Claim, the Non-Paying party has 10 working days to reply and lay down its defences to set-off in the Payment Response.

Notice of Adjudication

3.Notice of Adjudication

3.Notice of Adjudication

4.Registration and Appointment of Adjudicator

Upon the lapse of due date by the Non-Paying party to file a Payment Response, the Unpaid Party may now initiate an Adjudication proceeding by way of Notice of Adjudication.

Notice to the Director of the AIAC to register the adjudication

4.Registration and Appointment of Adjudicator

4.Registration and Appointment of Adjudicator

4.Registration and Appointment of Adjudicator

Upon the issuance of Notice of Adjudication, the unpaid party may proceed to register the adjudication with Asian International Arbitration Centre(AIAC). When the parties are unable to agree on the proposed Adjudicator within 10 working days from the service of Notice of Adjudication, the unpaid party may issue a request for appointment of an adjudicator to the Director of AIAC.

Notice of acceptance of the appointment to act as adjudicator

5.The Appointed Adjudicator

4.Registration and Appointment of Adjudicator

5.The Appointed Adjudicator

Upon the receipt of request to appoint an adjudicator by Director of AIAC, the Director will appoint an adjudicator within 5 working days from the receipt of the request and the appointed Adjudicator has to indicate its acceptance to the appointment and issue a Form 6 upon successful negotiation of terms with the parties.

Adjudication Process Claim Malaysia

6. Adjudication Claim

4.Registration and Appointment of Adjudicator

5.The Appointed Adjudicator

Upon the issuance of acceptance of appointment by the Adjudicator in Form 6, the Claimant has to serve an Adjudication Claim on the Respondent within 10 working days, stating clearly the nature and description of the dispute, the remedy sought thereunder and enclose relevant supporting documents to justify its claim.

Adjudication Response

7. Adjudication Response

7. Adjudication Response

7. Adjudication Response

Upon the receipt of Adjudication Claim, the Respondent shall issue an Adjudication Response within 10 working days, stating in detail its defence of set-off and/or counterclaims together with relevant supporting documents. The Respondent, if successful, may only reduce the Claimant's claim to zero and not be awarded any positive sum.

Adjudication Reply

8. Adjudication Reply

7. Adjudication Response

7. Adjudication Response

Upon the receipt of Adjudication Response, the Claimant shall issue an Adjudication Reply within 5 working days, stating its detailed reply on the set-off and/or counterclaim raised by the Respondent.   

Delivery of Adjudication Decision

9. Adjudication Decision

7. Adjudication Response

9. Adjudication Decision

The Adjudicator shall within 45 days upon the receipt of Adjudication Reply issue an Adjudication Decision to the parties. 


If  there is no Adjudication Response being served upon the due date, the Adjudicator shall issue an Adjudication Decision within 45 days from the due date to serve Adjudication Response.

Adjudication Process In Malaysia

CIPAA - Procedure Flow Chart

The CIPAA Procedure comprises a number of essential stages that guarantee an efficient and equitable resolution of construction payment disputes in Malaysia. All stakeholders to a construction contract must have a thorough understanding of the adjudication process in Malaysia.


  1. In the payment claim, the claimant submits a written request for payment to the respondent. The respondent then has a specified amount of time to issue a payment response indicating whether or not they concur with the claim. If a dispute exists, the claimant may proceed to the next phase by issuing a notice of adjudication.
  2. Both parties are required to register the dispute with an authorized adjudication authority following the notice of adjudication. This registration requires completing the required paperwork and paying the associated fees. Once registered, the adjudication authority will select an adjudicator from a panel of qualified professionals.
  3. The appointed adjudicator is a neutral and independent expert responsible for evaluating the claim and rendering a binding decision within a predetermined time frame. Before issuing an adjudication decision, the adjudicator conducts a thorough examination of the evidence and arguments presented by both parties.
  4. Throughout the procedure, parties must strictly adhere to the prescribed deadlines and requirements to ensure a seamless and effective flow. Adjudication provides a faster and more cost-effective alternative to conventional dispute resolution methods, making it an increasingly popular choice in the Malaysian construction industry.


In conclusion, the CIPAA procedure provides a structured framework for resolving construction industry payment disputes. Its transparent and well-defined phases, from payment claim to adjudication decision, promote efficiency and clarity in dispute resolution. By following this procedure, parties can confidently navigate the adjudication process, ensuring an equitable resolution for all parties. For a detailed comprehension of the process, see the CIPAA procedure flow chart below.

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