The effectiveness of the implementation of CIPAA 2012 in alleviating the payment ills of Malaysia construction industry

Abstract

Some expert has doubted the effectiveness of CIPAA 2012 in relieving the payment problems in the industry as most of the court decisions were held in favour of the non-paying party preceded by the escalation of adjudication generated litigation cases as well as the presence of inconsistencies of the court in interpreting the Act. Despite several approaches taken by AIAC to emphasize the effectiveness of CIPAA 2012 in resolving payment disputes, some industry players still doubted or unaware of the effectiveness of CIPAA 2012 to the entire industry. Hence, this research is conducted with the objective to determine the effectiveness of CIPAA 2012 in alleviating the payment problems in the construction industry. At its inception, the study will reveal the payment ills followed by the methods proposed to overcome payment ills before venturing into definition and characteristic of adjudication. Further, types of adjudication will be chew over preceded by advantages and disadvantages of CIPAA. Then, characteristic of CIPAA 2012 will be revealed following by the implication of CIPAA 2012 to the industry and at last the gist of the research which is the effectiveness of CIPAA 2012 discussed by a few experts will be disclosed. Research methodology used was the interviewees were required to construe the data portrayed by AIAC. The interview questions comprised of open and closed end questions focusing on the personal particular and questions related to the topic discussed and interviewees were encouraged to provide their opinions on the subject matter. Data collected will be analysed and elaborated by the author in detail. The findings clearly showed that CIPAA 2012 is effective in alleviating payment problems as it helps claimant to recover payment in a quicker manner and it also disclosed that CIPAA 2012 is going to provide regular and timely payment as it will slowly change the payment culture of the stakeholders.