Author: Cheri

Pay Now, Argue Later and CIPAA 2012

Construction contracting businesses have the second-highest bankruptcy rate of any type of private business. Things could be going great, but one unpaid change order, a late payment, a costly rework, or an unanticipated legal claim has the potential to derail your progress and leave you grasping for the remains of your company.

The introduction of the Construction Industry Payment and Adjudication Act 2012 (“CIPA Act” or “Act”) represents a significant development in the construction industry. It is hoped by the government and the stakeholders of the construction industry that improvements to cash flow and payment disputes within the construction industry will result in fewer delays and abandoned projects, as well as better quality properties and more affordable prices. ( by Raymond Mah)


Adjudication Process for CIPAA 2012

#CIPAA2012 -Construction Industry & Payment Adjudication Act 2012

Payment disputes are the concern of CIPAA Act and can be brought to an adjudicator certified by Asian International Arbitration Centre (AIAC) as an alternative form of dispute resolution. It is believed to be cheaper and faster than litigation through the Courts. This Act gives wide powers to the adjudicator with a view to enable a decision to be made within 45 days upon the close of pleadings. As such, the underlying approach for justice of this Act is “Pay Now, Argue Later”. This rough justice approach lays in stark contrast to the fine justice approach adopted by the Courts.