The Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012) is a Malaysian law enacted to resolve payment disputes in the construction industry quickly and efficiently.
Before CIPAA 2012, sub-contractors who were not paid had to go through lengthy and expensive court or arbitration proceedings — sometimes taking years to recover their money. CIPAA 2012 changed this by introducing statutory adjudication a faster, more affordable alternative.
Who Does CIPAA 2012 Apply To?
CIPAA 2012 applies to any written construction contract for construction work carried out in Malaysia. This includes contracts between:
- Main contractors and sub-contractors
- Developers and main contractors
- Sub-contractors and sub-sub-contractors
What Payment Disputes Can You Claim Under CIPAA 2012?
You can file a claim under CIPAA 2012 for:
- Unpaid progress claims
- Retention sum not released
- Under-certification of work done
- Back charges you disagree with
- LAD (Liquidated Ascertained Damages) disputes
How Fast is CIPAA 2012?
The entire adjudication process typically concludes within 95 working days from the date your Payment Claim is served. This is significantly faster than arbitration or litigation.
What is the Success Rate?
According to AIAC records, approximately 89% of adjudication decisions are awarded in the Claimant’s favour. At WE Project Management PLT, our success rate is 90% — built on careful case assessment and only taking cases we are confident about.
How Do I Start a CIPAA Claim?
The first step is to serve a Payment Claim on the party who owes you money. This must comply with the requirements of CIPAA 2012 and the AIAC Adjudication Rules. Getting this right from the start is critical — mistakes in the Payment Claim can affect your entire case.
Contact WE Project Management PLT for a free initial consultation. We will assess your case honestly and advise you on the best course of action.