Profile of construction payment dispute

Abstract

The construction industry plays an important role in the development of Malaysia. The industry has contributed forward the physical and social economic growth of the country. The industry also provides employment for many ranging from professionals such as architects, engineers and surveyors to main contractors, subcontractors, suppliers to tradesmen and manual workers. However, the industry is faced with chronic problem of payment dispute which has affected the entire delivery chain. This research set out to study the profiles of cases of construction payment disputes handled by the Malaysian court. This research is carried out mainly through documentary analysis of Malaysia Law Journal (MLJ) court case. It was carried out using the university’s library online e-database via the Lexis-Nexis website. Since the circumstances discussed are the situations which had occur for the past 19 years (1990 to 2009). This research finding identify that the common nature of construction payment disputes and payment procedure according to terms of standard form of contract. The most party involved in construction payment disputes are between the employer and the main contractor. This research also identified the most disputes occurred during construction phase and different standard form used. By developing this profile, hopefully it would provide as a common payment disputes guide to parties at early stage of the project. Besides as a tool in contract management to assist the relevant parties in addressing problems associated and timely manner to create a win-win situation for all parties in the Malaysian construction industry