The Construction Industry Payment and Adjudication Act 2012 (CIPAA) was enacted to address a persistent commercial reality in the construction industry: work is often completed long before payment is secured, and cashflow pressure is felt most acutely by subcontractors. While adjudication under CIPAA provides a fast-track mechanism to determine payment disputes, an adjudication decision on…
Wednesday, 15 April 2026 3:00 pm – 4:00 pm Calling Performance Bonds: How Developers Can Avoid and Overcome Injunctions About this talk Performance bonds are a critical safeguard for developers in construction projects, providing a readily available financial remedy in the event of contractor default. In practice, however, calls on performance bonds are often met…
Securing a favourable adjudication decision is a significant milestone for any unpaid party in a construction dispute. However, the real challenge often lies in getting paid on that decision. Enforcing the decision under section 28 of the Construction Industry Payment and Adjudication Act 2012 (CIPAA) would be the most common approach. However, unpaid parties can…
The Homebuyer’s Tribunal (formally, Tribunal for Homebuyers Claims, and in Malay, Tribunal Tuntutan Pembeli Rumah) provides an avenue for purchasers of residential properties to initiate claims against housing developers. The Tribunal is established under the Housing Development (Control & Licensing) Act 1966 (“HDA”). A claim at the Homebuyer’s Tribunal is a cost-effective alternative to court…
Wednesday, 13 August 2025 3:00 pm – 4:00 pm Developer’s Responsibility to Rectify Patent and Latent Defects About this talk Whether you’re a developer or a property management company, navigating construction defect claims is critical to protecting your reputation, assets and client satisfaction. In this online session, our construction lawyers will explain the Defect Liability…
Tuesday, 29 October 2024 3:00 pm – 4:00 pm The Federal Court Decision in Obata-Ambak Holdings: Its Impact on Developers and Purchasers About this talk The Federal Court’s recent decision in Obata-Ambak Holdings Sdn Bhd v Prema Bonanza Sdn Bhd & Other Appeals [2024] has redefined the rights of developers and homebuyers, significantly impacting Malaysia’s…
The Construction Industry Payment and Adjudication Act 2012, often abbreviated as “CIPAA”, was enacted to address issues related to payment disputes within the construction industry in Malaysia. According to the Asian International Arbitration Center (AIAC), over 5,000 adjudication disputes have been registered at the AIAC since CIPAA came into force. The amounts in dispute in…
In Malaysia’s dynamic real estate industry, joint ventures have emerged as a pathway to success for Malaysian developers. This collaborative strategy typically involves an alliance between two distinctive yet complementary forces: property developers and landowners. Property developers bring to the table their financial strength, construction expertise, and market acumen, while landowners offer the essential ingredient…
Wednesday, 20 September 2023 3:00 pm – 4:00 pm Enforcing an Adjudication Decision: Direct Payment from Principal About this talk Winning a CIPAA adjudication and obtaining a favourable decision does not guarantee that the respondent will pay the adjudicated sum. One option is to make a demand and bring a claim for direct payment from…
Effective administration of construction contracts is critical for a productive business relationship between the parties involved. The construction process is one that is complex, specific, long-drawn and requires detailed documentation. It is also a project in which so many things can go wrong resulting in serious losses all around. In order to reduce risk and…
Foreign arbitration awards are not binding and enforceable in Malaysia unless they are recognized as binding and be enforced by entry as a judgment by the High Court. Arbitration Act 2005 The enforcement of a foreign arbitration award in Malaysia is governed by Section 38 of the Arbitration Act 2005. Under Section 38 of the…
Adjudication continues to be a popular choice of dispute resolution in the construction industry in Malaysia since the Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012) came into force on 15.4.2020. The expedited adjudication process has been described as “rough justice” and can leave the unsuccessful party very unhappy with the decision. In such…
In Ang Ming Lee & Ors v Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Anor and other appeals [2020] 1 MLJ 281, the Federal Court held that the Controller of Housing does not have the power to extend the completion time of a housing development beyond the prescribed period under the Housing Development (Control…
