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CONSTRUCTION INDUSTRY PAYMENT AND ADJUDICATION REGULATIONS 2014

CONSTRUCTION INDUSTRY PAYMENT & ADJUDICATION ACT 2012
CONSTRUCTION INDUSTRY PAYMENT & ADJUDICATION (EXEMPTION) ORDER 2014

IN exercise of the powers conferred by paragraph 40(b) of the Construction Industry Payment and Adjudication Act 2012 [Act 746], the Minister, upon considering the recommendation of the Kuala Lumpur Regional Centre for Arbitration, makes the following order:

1. Citation and commencement

  • This order may be cited as the Construction Industry Payment and Adjudication (Exemption) Order 2014.
  • This Order comes into operation on 15 April 2014.

2. Exemption

  • A Government construction contract as specified in the First Schedule is exempted from all provisions of the Act.
  • Subject to subparagraph (3), a Government construction contract as specified in the Second Schedule is exempted from the application of subsections 6(3), 7(2), 10(1), 10(2), 11(1) and 11(2) of the Act from 15 April 2014 to 31 December 2015.
  • The exemption referred to in subparagraph (2) is subject to the following terms and conditions:
  • a payment response under section 6 of the Act shall be served on the unpaid party within thirty days of the receipt of the payment claim;
  • the right to refer a dispute to adjudication by the unpaid party or non-paying party under subsection 7(2) of the Act shall only be exercised after the expiry of the period to serve a payment response under subsubparagraph (a);
  • the respondent referred to in section 10 of the Act, within thirty days from the receipt of the adjudication claim, shall—
  • serve a written adjudication response which shall answer the adjudication claim together with any supporting document on the claimant; and
  • provide the adjudicator with a copy of the adjudication response together with any supporting document; and
  • the claimant referred to in section 11 of the Act, within thirty days from the receipt of the adjudication response—
  • may serve a written reply to the adjudication response together with any supporting document on the respondent; and
  • shall provide the adjudicator with a copy of the adjudication reply together with any supporting document.

FIRST SCHEDULE

A contract for any construction works—

  • that is carried out urgently and without delay due to natural disaster, flood, landslide, ground subsidence, fire and other emergency and unforeseen circumstances;
  • that relates to national security or security related facilities which includes the construction of military and police facilities, military bases and camps, prison and detention camps, power plant and water treatment plant.

SECOND SCHEDULE

A contract for any construction works as defined under the Act with the contract sum of twenty million ringgit (RM20,000,000) and below.

Made 14 April 2014
[KKR.PUU.110-1/5/3/1; PN(PU2)720/II]
DATUK HAJI FADILAH BIN YUSOF
Minister of Works