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Issues Resolved by CIPAA Act 2012
Payment Disputes:
Variations Orders claims:
Variations Orders claims:
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These disputes often revolve around issues such as delays in payment, delay in certification, partial certification, certified but remain unpaid so on so forth. Non-compliance with payment terms is the common scenario by the employer or main-contractors and it often lead to cash flow problem of some smaller contractors especially when the payment has been certified but remain unpaid for months.
Variations Orders claims:
Variations Orders claims:
Variations Orders claims:
Disputes may arise when there are disagreements over variations or changes of design to the original contract. These disputes can involve disputes over the scope, cost, or timeline of variations, or disputes regarding the validity of the variation order claim in the absence of express written instructions.
LAD Disputes:
Variations Orders claims:
Defective/incomplete works disputes:
Delays in project completion can result in claims for LAD by the employer, which can lead to disputes between the contracting parties. Disagreements may arise over the legitimacy of the LAD claim, the duration of the extension sought and disapproved, or the cause of delay and who shall be liable in such circumstances.
Defective/incomplete works disputes:
Final Account upon Termination of Contract:
Defective/incomplete works disputes:
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Disputes regarding defective workmanship, non-compliance with specifications or standards, or disputes over the quality of materials used can be addressed in CIPAA 2012. This usually happens when a party intends to claim for retention sum but was unsuccessful due to defective and/or incomplete works. The parties involved may disagree on the responsibility for rectification, the extent of the defects, or the adequacy of inspections and testing.
Retention sum disputes:
Final Account upon Termination of Contract:
Final Account upon Termination of Contract:
Disputes may arise when contractors claim for release of retention sum although the employer has failed to issue any CPC or CMGD even when all contractual due dates have lapsed. The parties may show to the adjudicator there is proper hand over and defect rectification when claiming for the release of retention sum.
Final Account upon Termination of Contract:
Final Account upon Termination of Contract:
Final Account upon Termination of Contract:
Claims for final work done is the common struggle of contractors especially when there is termination of contract. Employer may refuse to make any final payment due to the unlawful or premature termination which would result in hefty backcharges or set-off impose by the Employer. Parties are entitled to bring the action to CIPAA to recover final payment due to be made even when contract is terminated.
Backcharges disputes:
Backcharges disputes:
Backcharges disputes:
Most often than not, the employer or main-contractor will unilaterally deduct some amount off the interim certificates and force the sub-contractor to accept it if they want swifter release of payment. Contractors aggrieved by backcharges not issued under the proper procedure of the contract may bring a claim for work done unlawfully deducted to a CIPAA proceedings.
