Adjudicators' Jurisdiction In Construction Industry Payment And Adjudication (CIPA)

• Published date: 04 April 2024
• Law Firm: Azmi & Associates
• Author: Mr Lzzat Asyraf Zamri and Ammera Hadi

Introduction

The growth of the construction industry in Malaysia equally gives rise to construction related disputes. Such disputes often involve project payments within the construction phase which, if not resolved expeditiously, could lead to work progress being hindered.

In view of this, the Construction Industry Payment & Adjudication (CIPA) Act 2012 was enacted and came into operation on 15.04.2014. Through it came a mechanism to resolve payment related disputes faster as compared to Court action or arbitration. Through the CIPA Act 2012, an adjudication would be decided by an appointed Adjudicator within approximately 109 working days from its initiation through a Payment Claim.

The Role of Adjudicators and Their Jurisdiction

Another integral factor which sets adjudication proceedings apart from Court proceedings or arbitration is that an Adjudicator need not have legal background. A person having work experience of at least 7 years in the building and construction industry in Malaysia or any other recognised fields is qualified to be an Adjudicator subject to receiving the relevant certification.

Given the above, Section 27 of the CIPA Act 2012 generally limits the jurisdiction of an Adjudicator to matters referred to adjudication by parties through their Payment Claim and Payment Response. If an Adjudicator acts in excess of jurisdiction, an aggrieved party may apply to Court to set aside the Adjudication Decision under Section 15 of the CIPA Act 2012.

Thus, an Adjudicator's jurisdiction is a pertinent issue in...