It is reported in the media the Malaysian construction industry may soon see a major change in the way non-payment issues are resolved. It is thought that the proposed Construction Industry Payment and Adjudication Bill 2011 (CIPA) will greatly reduce the instances of Non-payment of progress billings and cash flow shortfalls issues may be reduced if the Bill is passed by Parliament.
It is understood that the bill is being reviewed at the Attorney-General’s Chambers and that it will provide for quicker resolution of payment disputes through adjudication which will contribute to facilitating more timely and regular progress payments to contractors, subcontractors and suppliers within the construction industry.
We will keep you posted of developments and would like to hear your opinion on whether such a bill will benefit the industry or perhaps will it just place more pressure on contractors.
A Preliminary draft of the CIPA is available for viewing or download in the Resources Centre
The KLRCA proposed some amendments to the bill and these are available for viewing KLRCA proposed amendments CIPA Bill 2010
Malaysian Construction and Contract Law 