ArbDB News

ArbDB Members, John Wright And Michael Cover, Welcome The Coming Into Operation Of The Construction Industry Payment And Adjudication Act 2012 In Malaysia

Members of ArbDB, the Arbitration, Mediation and Dispute Board Chambers, John Wright and Michael Cover, have welcomed the coming into operation of the Construction Industry Payment and Adjudication Act 2012 in Malaysia. CIPAA, as it is generally known, provides for the resolution of disputes over payments in construction contracts by means of compulsory adjudication. CIPAA came into operation on 15 April 2014 and will apply to all construction contracts immediately, although there are certain limited exemptions for construction contracts involving the Malaysian Government.

The Kuala Lumpur Regional Centre for Arbitration (KLRCA), under its estimable Director, Professor Datuk Sundra Rajoo, is the Adjudication Authority under CIPAA and sets standards for adjudicators and is also the default appointing authority under the Act. CIPAA will provide fast track and interim decisions to protect cashflow in construction contracts and enable projects to keep moving.

John Wright and Michael Cover are both members of the KLRCA Panel of Adjudicators and are also on the RICS Dispute Board Register. John is also a Member of the FIDIC President’s List of Approved Dispute Adjudicators.

John and Michael commented: 'We are delighted that the Malaysian Construction Industry Payment and Adjudication Act 2012 has been brought into operation. Malaysia joins a small and select group of countries that has such legislation and we look forward to being of service as adjudicators under this new regime'.