why choose cipaa

CIPAA 2012 is designed as a tool to alleviate cash flow problems in the construction industry. CIPAA will achieve its objective as it is a tool designed with speed which means the adjudication process will proceed at much faster pace than arbitration or court litigation.

We were made to understand that CIPAA was to be offered as a simple, fast and cheap mechanism for resolving contractors’ payment problems or payment disputes faced by the industry players as opposed to conventional method in resolving payment disputes through Court or Arbitration.

In addition to the slow and expensive traditional processes of resolving construction payment disputes, the prevalent use of unfair conditional payment contractual provisions such as “pay-when-paid” or “pay-if-paid” clauses has worsened the cash flow landscape in the construction industry. CIPAA 2012 was designed to fix these problems by making any conditional payment term void and inapplicable.

CIPAA 2012 has the spirit of “pay now, argue later” and it simply means that adjudicator’s decision would be binding and thus must be complied with so as to rescue parties who are being stucked in a stalemate situation where nothing can be moved at construction site. Such quick enforceable interim decision under CIPAA 2012 will certainly give life back to the enterprise which has reached an impasse and allow quick answers to be given via CIPAA 2012 to the contractors at then expense of right answers.

At the end of the day, resolving cash flow problem and getting construction projects to be completed is the primary object of CIPAA 2012 and thus contractors must make good use of such an additional mechanism introduced by the Parliament which is cheap, fast and effective. To us, CIPAA is like the angioplasty in arterial blockages and it helps clears any blockage in the cash flow which is the life blood of the construction industry.