Construction Industry Payment and Adjudication Act; enhancing security of payment in the Malaysian Construction Industry

Payment has always been the thorn in the Malaysian Construction Industry. Thus, it becomes a barrier to achieve the second CIMP strategic thrust which is to strengthen the image of Malaysian construction industry. Lesson learned from the UK Construction Industry, payment problems was overcome by means of statutory adjudication. Therefore, the purpose of this research was to investigate the potential of the? `Construction Industry Payment and Adjudication Act?´ in enhancing the security of payment disputes. Literature review on statutory adjudication and the type of security of payment problems were explored in the earlier stage of this research. Ninety one court cases were selected to determine the types of dispute raised to be adjudicated and the defence claims to enable identification on viability of statutory adjudication in mitigating security of payment problems. This research compared the HGCRA of the UK construction industry and draft Malaysia Construction Industry Payment and Adjudication Act (CIPAA) in determining the similarities and differences between both Acts, hence providing an outlook on potential of draft CIPAA.