Five Years On: A Review of Statutory Adjudication in Malaysia

Statutory adjudication was introduced in Malaysia when the Construction Industry Payment and Adjudication Act 2012 (“the CIPAA”) was gazetted on 22 June 2012. To support the statutory adjudication regime, two specialist Construction Courts in the High Court of Kuala Lumpur and the High Court of Shah Alam were established on 1 April 2013. The CIPAA, however, only came into force on 15 April 2014 when the Construction Industry Payment and Adjudication Regulations 2014 and the Construction Industry Payment and Adjudication (Exemption) Order 2014 (“the Exemption Order”) were in place to support it.

As of 2019, statutory adjudication has been in operation for five years in Malaysia and there has been steady growth in the number of adjudication cases and court cases concerning adjudication. Based on statistics produced by the Asian International Arbitration Centre (“the AIAC”, formerly Kuala Lumpur Regional Centre for Arbitration), the sole adjudication nominating body in Malaysia, there have been over 1,500 adjudication cases and 4503 court cases concerning adjudication as of 15 April 2018 and 28 February 2018 respectively. Given the large number of adjudication cases recorded and the growing body of case law developed, this article examines the fundamentals of adjudication under the CIPAA and provides procedural clarifications in respect of its operation from the viewpoints of case law

PROFILE

Dr Muhammad Ehsan Che Munaaim is a Senior Consultant with HKA, based in Dubai, United Arab Emirates. He has over 13 years of experience in contract management and administration, claim management, claims preparation and defence, dispute resolution, and commercial management. He is a legally qualified Chartered Quantity Surveyor (UK), Chartered Construction Manager (UK) and Registered Quantity Surveyor (Malaysia) with exemplary academic and professional qualifications obtained from the UK and Malaysia, including a PhD in Construction Law and Dispute Resolution from King’s College London, and various professional memberships including FRICS, FCIArb and FCIOB. Ehsan has taught at some of the world’s top universities, including University College London, and is presently a part-time lecturer in commercial management and surveying at Heriot Watt University, Dubai campus.


This publication presents the views, thoughts or opinions of the author and not necessarily those of HKA. Whilst we take every care to ensure the accuracy of this information at the time of publication, the content is not intended to deal with all aspects of the subject referred to, should not be relied upon and does not constitute advice of any kind. 

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The Malaysian adjudication regime has been fortunate to have specialist and supportive court systems ready, willing and able to enforce adjudication decisions consistent with the intentions of Parliament.”
Dr Muhammad Ehsan Che Munaaim, Senior Consultant, HKA
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