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Updates: Court of Appeal Decision on UDA Holdings Bhd v. Bisraya Construction Sdn Bhd (24C-6-09/2014) and Capital Avenue Development Sdn Bhd v. Bauer (M) Sdn Bhd (24C-5-09/2014)
20 Jul 2015

On 13th July 2015, the Court of Appeal in UDA HOLDINGS BHD V BISRAYA CONSTRUCTION SDN BHD (24C-6-09/2014) and CAPITAL AVENUE DEVELOPMENT SDN BHD V BAUER (M) SDN BHD (24C-5-09/2014), upheld the High Court’s decision on 31st October 2014 in determining that the Construction Industry Payment and Adjudication Act (CIPAA) 2012 applies retrospectively subject to Sections 3 and 41 of the Act.

This would mean that an “unpaid party” has the right to bring a claim under every “construction contract” made in writing within the meaning of Section 4 of the Act regardless of when the payment claim was made as long as the statutory limitation period of 6 years has not set in.

For ease of reference, an unpaid party as defined under CIPAA means a party who claim payment of a sum which has not been paid in whole or in part under a construction contract.

Should you have any payment claims under a construction contract that remain unpaid prior to 15th April 2014 (date of enforcement of CIPAA), you may commence the adjudication process as provided under CIPAA 2012.

The KLRCA will continue to register and administer adjudication cases filed with it under CIPAA 2012.

For further clarification, please do not hesitate to forward your enquiries to enquiry@klrca.org.



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