Welcome to MyContractSolutions, Your One-Stop Consulting Firm for CIPAA Adjudication Consultancy and Construction Claim Services
Welcome to MyContractSolutions, Your One-Stop Consulting Firm for CIPAA Adjudication Consultancy and Construction Claim Services
A Statutory Adjudication under CIPAA 2012 can be initiated by issuing a Payment Claim
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.
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.
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.
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.
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.
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.
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.
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.
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.
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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