CIPAA Malaysia

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CIPAA stands for the Construction Industry Payment and Adjudication Act 2012, which came into effect on 15.4.2014.

Before CIPAA, disputes in the construction industry had to go through the process of arbitration or litigation. This is a lengthy process that is also costly. The result is that many contractors are unable to sustain their cashflow and business operations whilst waiting for the dispute to be resolved.

By CIPAA, Parliament introduced statutory adjudication as an interim dispute resolution process. It is a quick, efficient, effective (but rather summary) procedure designed to resolve payment disputes pending a final dispute resolution by way of arbitration or litigation.