Malaysia - Adjudicators' Jurisdiction In Construction Industry Payment And Adjudication (CIPA). Legal News and Analysis - Malaysia - Dispute Resolution - International Arbitration -
KUALA LUMPUR (Sept 30): Master Builders Association Malaysia (MBAM) has announced its Budget 2023 wishlist, urging the government to boost the construction sector with more projects, according to a statement released on Monday (Sept 26).
A general introduction to alternative dispute resolution methods in Malaysia, covering key considerations surrounding arbitration, mediation and other mechanisms.
With its strategic location and significant natural resources, Malaysia is an internationally recognized investment-friendly jurisdiction with a significant construction industry..
Introduction
Section 25 of the Construction Industry Payment and Adjudication Act (CIPAA) 2012 lists adjudicators extensive powers in adjudication proceedings, including the power to award financing costs and interest. The recent high court decision in
First Commerce Sdn Bhd v Titan Vista Sdn Bhd and another case(1) examined the extent of an adjudicator s powers to determine remedies and interest in unique circumstances where a payment clause was void and the default statutory implied payment provision in the CIPAA was pleaded.
Facts
First Commerce Sdn Bhd was appointed as the main contractor by the employer of a project to build and complete the super structure of the project. Upon being notified by the employer, the architect directed First Commerce to appoint Titan Vista Sdn Bhd as its nominated subcontractor to perform part of the project. Accordingly, First Commerce issued a letter of award to Titan Vista for such work. The letter stated that the terms and conditions of th