CIPAA Procedure Flowchart

Understanding the CIPAA Timeline: A Guide to Dispute Resolution

Navigating construction industry payment disputes CIPAA in CIPAA Malaysia can be complex. To simplify the process, we've created a CIPAA procedure flowchart. This guide outlines the CIPAA claim process, from serving a CIPAA Payment claim to CIPAA adjudication at the AIAC CIPAA.

Understanding the CIPAA timeline is crucial for successful CIPAA dispute resolution. This flowchart illustrates the CIPAA Procedure, helping you understand when to file CIPAA claim and the steps involved in CIPAA adjudication.

Whether you need CIPAA legal advice, want to understand CIPAA claim cost, or need to understand the CIPAA amendment, this flowchart is your essential guide to the CIPAA Act and CIPAA ACT 2012. We also highlight the importance of obtaining CIPAA legal advice from a CIPAA claim lawyer throughout the process.

Step 1: Identify and Document the Dispute:

Gather Evidence:
- Examples:
  - Signed construction contract with payment terms.
  - Invoices detailing the work performed and amount due.
  - Progress reports, site diaries, and photographs documenting work completion.
  - Payment claims submitted to the respondent.
  - Correspondence (emails, letters) regarding payment requests.
- Detail: This step is crucial for building a strong case. Meticulous record-keeping is essential.
Determine Dispute Value:
- Example: Calculate the total unpaid amount, including principal, interest (if applicable), and any other legitimate costs.
- Detail: Accurate calculation is vital for the Payment Claim.

Step 2: Serve Payment Claim:

Prepare CIPAA Payment Claim:Examples:
Clearly state the parties involved.
Detail the construction contract and its relevant clauses.
Provide a chronological account of the work performed.
Include a precise calculation of the amount claimed.
Attach all supporting documents as exhibits.
Detail: Compliance with the CIPAA Act's requirements for the Payment Claim is mandatory.
Serve Claim on Respondent:Examples:
Send via registered mail with acknowledgment of receipt.
Deliver by hand with a signed acknowledgment from the respondent.
Detail: Proper service is essential for establishing the validity of the claim.

Step 3: Respondent's Payment Response:

Respondent Acknowledges Claim: Or disputes the claim.
Respondent Provides Payment Response: (Within 10 working days)
Example: The respondent submits a document disputing the claim, stating defects in the work.
Detail: The response must be served within the statutory timeframe.
Response includes reasons for non-payment: And supporting documents.Examples:
Counterclaims for defective workmanship.
Allegations of project delays caused by the claimant.
Disputes over variations to the contract.
Detail: The response should be well-documented and supported by evidence.

Step 4: Adjudication (If Dispute Remains):

Refer Dispute to AIAC: (If no resolution after response)
Example: The claimant submits a Notice of Adjudication to the AIAC.
Detail: The Notice of Adjudication initiates the adjudication process.
AIAC Appoints Adjudicator: (Within 5 working days)
Detail: The AIAC selects a qualified and impartial adjudicator.

Step 5: Adjudicator's Process:

Adjudicator Reviews Submissions: Claim and Response.
Detail: The adjudicator thoroughly examines the documents and arguments.
Adjudicator May Request Further Information: From either party.
Example: Requests for clarification on specific contract clauses or technical details.
Detail: Parties must comply with the adjudicator's requests.
Adjudicator May Conduct Hearings/Site Visits: If necessary.
Example: A hearing to clarify witness testimony or a site visit to inspect disputed work.
Detail: Hearings and site visits are at the adjudicator's discretion.

Step 6: Adjudication Decision:

Adjudicator Issues Decision: (Within prescribed timeframe, usually 45-60 working days)
Example: The adjudicator issues a written decision ordering the respondent to pay a specific amount to the claimant.
Detail: The decision must comply with the CIPAA Act.
Decision is Legally Binding: On both parties.
Detail: Both parties are obligated to comply with the decision.

Step 7: Compliance or Enforcement:

Respondent Complies with Decision: Pays the adjudicated amount.
Respondent Fails to Comply: Claimant registers decision with the High Court.
Detail: Registration converts the adjudication decision into a court judgment.
Claimant Enforces Decision: Through court procedures (garnishee, etc.).Examples:
Garnishee proceedings to seize funds from the respondent's bank accounts.
Execution against the respondent's assets.
Detail: Enforcement procedures are governed by the Rules of Court.