Date: 26 September 2022 (Monday)
Time: 2:00pm – 5:00pm
Mode: Physical
Venue: JKR Research Centre
Location: https://goo.gl/maps/LimbprgVJTEDcHKG9
Speaker: Dr. Daniel Looi, Ir. Tu Yong Eng
CPD Hours: 3
Ref. No.: Pending
Event synopsis:
Payment disputes in the construction industry have become a common problem in Malaysia and in most countries, especially
in developing countries. About 50% of Malaysia construction projects experience Under Payment, Late Payment and/or Non-
Payment issues which causes complication to the projects to the extent that some of the projects are abandoned wherein
innocent third-party purchasers become victims of delayed and abandoned projects.
One of the main elements for the complication is the client’s inadequate finance or main contractor’s poor cash flows for the
project. The amount of money involved in construction industry is enormous and when payments from the clients are
delayed, most of the contractors/sub-contractor would not be able to bear the heavy day to day construction expenses by
themselves which includes the cost of material, labour and other necessary day to day expenses. The issue of payment
dispute would eventually result in time over-run, cost over-run and total abandonment of the project.
Therefore, the construction payment dispute requires to be dealt with at worst, a cheaper, quicker, simpler, legal binding and
enforceable resolution enabled by an adjudication proceeding, which is what The Construction Industry Payment and
Adjudication Act (CIPAA) has specially drafted to resolve the issues with provisions such as PROHIBITION of Conditional
Payment, to STREAMLINE payment procedures and provide REMEDIES for the recovery of payment.
The Construction Industry Payment and Adjudication Act (CIPAA) 2012 has come into operation with effect since 15 April
2014. The talk will cover the definition and key features of CIPAA, construction culture and payment risks, as well as the
adjudication process under CIPAA. In addition, identification of construction payment problems, their impact and resolution
and how to conduct payment recovery through CIPAA proceeding will also be discussed during the talk.
The “JKR Standard Specifications for Building Works” was updated to the 2020 version, superseding the 2014 version. The Specifications covered a wide range of topics, ranging from earthworks, foundation, concrete, steel, drainage and various peripherals items. Given that concrete is the main construction material in Sarawak, Malaysia, a commentary handbook was written specifically for Section D of the Specification.
It is noted that concrete is a complex material made of aggregate particles, cementitious materials, water, chemical admixtures and various kinds of fibers (for special applications). Batch-to-batch variations are expected in the production of concrete; thus, the acceptance tests (conformity and identity) are essential. However, the criteria (initial and continuous production) for these acceptance tests are not thoroughly addressed in the Specifications with examples. Hence, this seminar is aimed to give the Sarawak construction industry stakeholders more detailed elaborations to complement the use of the Specifications.
Fees:
Payment disputes in the construction industry have become a common problem in Malaysia and in most countries, especially
in developing countries. About 50% of Malaysia construction projects experience Under Payment, Late Payment and/or Non-
Payment issues which causes complication to the projects to the extent that some of the projects are abandoned wherein
innocent third-party purchasers become victims of delayed and abandoned projects.
One of the main elements for the complication is the client’s inadequate finance or main contractor’s poor cash flows for the
project. The amount of money involved in construction industry is enormous and when payments from the clients are
delayed, most of the contractors/sub-contractor would not be able to bear the heavy day to day construction expenses by
themselves which includes the cost of material, labour and other necessary day to day expenses. The issue of payment
dispute would eventually result in time over-run, cost over-run and total abandonment of the project.
Therefore, the construction payment dispute requires to be dealt with at worst, a cheaper, quicker, simpler, legal binding and
enforceable resolution enabled by an adjudication proceeding, which is what The Construction Industry Payment and
Adjudication Act (CIPAA) has specially drafted to resolve the issues with provisions such as PROHIBITION of Conditional
Payment, to STREAMLINE payment procedures and provide REMEDIES for the recovery of payment.
The Construction Industry Payment and Adjudication Act (CIPAA) 2012 has come into operation with effect since 15 April
2014. The talk will cover the definition and key features of CIPAA, construction culture and payment risks, as well as the
adjudication process under CIPAA. In addition, identification of construction payment problems, their impact and resolution
and how to conduct payment recovery through CIPAA proceeding will also be discussed during the talk.
JKR SARAWAK STAFF: FREE
IEM MEMBER: RM 30.00
NON-IEM MEMBER: RM 50.00
All payables shall be made to:
Bank: Standard Chartered Bank Malaysia
Account Name: The Institution of Engineers Malaysia
Account No.: 420-1-5651-8528
Registration:
Click here to register:
*Please refer to the Flyer for further details.
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