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LATE payment in commercial transactions has always been cited as a major problem facing small and medium-sized enterprises (SMEs), be it in Malaysia o...

While most companies which have obtained an adjudication decision in their favour choose to apply for said decision to be enforced via Section 28 of the Construction Industry Payment and Adjudication Act (CIPAA), the less-travelled road of demanding payment for an adjudication decision via Section 30 of the CIPAA is proving to be another effective recourse for payment – as evidenced by a recent high court decision.

Introduction Every construction project has at least one consultant appointed by a developer (also known as an 'employer' of the project). While the types of consultant and their respective roles may differ from project to project, a consultant's role generally includes the certification of work and progress. In most instances, this also requires the consultant to certify the amount payable for work done and the amount payable by the employer to the main contractor. A payment certificate will be issued thereafter. As cashflow is crucial for main contractors in any ongoing construction project...

Introduction The Kuala Lumpur High Court has held that the appointment of the director of the Asian International Arbitration Centre (AIAC) is not justiciable in the Malaysian courts. On 12 October 2020 the high court struck out two originating summonses against the former director of the AIAC, the late Vinayak Pradhan.(1) The originating summonses were taken out by Prestij Mega Construction Sdn Bhd against the claimants in two separate adjudication proceedings. Prestij Mega sought to set aside the adjudication decisions on the grounds that, among other things, the appointments of the adjudic...

Introduction The year 2019 witnessed a myriad of statutory adjudication disputes in Malaysia. The surge in the number of disputes involving the statutory adjudication mechanism in the Construction Industry Payment and Adjudication Act (CIPAA) 2012 also led to a significant number of consequential challenges to adjudication decisions in the courts. This article highlights the notable decisions handed down by the Malaysian courts in 2019 and their effect on the future application of the CIPAA. Prospective effect of CIPAA The following noteworthy appeals marked the beginning of a dramatic depart...