Date: 24 - 25 August 2022 (Wednesday & Thursday)
Time: 8:00am – 5:00pm
Mode: Physical
Venue: International Engineering Centre
Location: https://goo.gl/maps/AGfmpJAZcmgJyrpi8
Speaker: Sr. Jaspal Singh
CPD Hours: 16
Ref. No.: IEM22/SWAK/148/S (w)
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 certificate of non-completion gives formal written notice to the contractor that they have failed to complete the works described in the contract by the completion date that was last agreed. Nevertheless, the Contract Administrator must give due consideration to any applications for extension of time before issuing a certificate of non-completion.
Despite the straight forward approach, non-completion are contentious areas in most construction contracts which can produce a whole range of disputes. This production of disputes is due to the serious consequences flowing from the issuance of non-completion of work to parties.
Flowing from the issuance of non-completion certificate is the deduction of liquidated damages or better known as LAD. Practitioners in the construction industry are expected to know all the necessary details in the actual implementation of non-completion and deduction of liquidated damages to ensure that their rights and liabilities are always taken care of.
With the above in mind, this talk is aimed to provide an overview and examine the principle, procedural and liability aspects of non-completion and liquidated damages in the local construction industry. Furthermore, it is intended that the participants/ practitioners will be able to better understand, adopt best practices and appreciate the contract administrator duties and obligation under a construction contract pursuant to this topic.
The principle topic and ambit of this course will be: -
- Introduction & Definition to Non-Completion & Liquidated Damages
- Factors & Prevailing Practice in Deciding Non-Completion and imposing Liquidated Damages
- Application & Certification Procedures in Non-Completion and Liquidated Damages
- The Malaysian legal position on Liquidated Damage and practice in local construction industry
- Non-Completion and Liquidated Damages provisions and procedures in PWD 203 1/2010 and PAM 2006/ 2018 Standard Form of Contract
- Miscellaneous issues and a question and answer session on the topic
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.
IEM MEMBER: RM 900.00
NON-IEM MEMBER: RM 1,000.00
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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