April 28, 2014
Circular CIPAA 04 KLRCA’s Procedure for Exemption Application made under Section 40 of the CIPAA 2012
Under Section 40 of the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”), the Minister may upon considering the recommendation of the KLRCA, make an order for exemption of any person or class of persons or any contract, matter or transaction or any class thereof, from all or any of the provisions of CIPAA, subject to such terms and conditions as may be prescribed.
In order for the Director of KLRCA to make a recommendation to the Minister of Works for exemption under Section 40 of the CIPAA, the KLRCA has introduced a procedure for an application for exemption.
The KLRCA procedure for the application of exemption, as set out in the KLRCA Rules and Procedure, is set out below:-
PROCEDURE FOR EXEMPTION APPLICATION
1 An application for exemption under section 40 of the Act shall be made in writing to the Director of KLRCA.
2 The application for exemption must –
(a) be accompanied by a non-refundable application fee in the amount of RM20,000.00;
(b) contain the name and address of the applicant;
(c) identify the person or class of persons, or contract, matter, transaction or any class thereof, and the provisions of the Act from which the applicant seeks to be exempted; and
(d) contain a statement of the grounds and furnish any relevant documents (if any), in support of the application.
3 Upon receiving an application for exemption, the Director of KLRCA may –
(a) decline the application if it fails to comply with paragraph 2 above; or
(b) request any further information from the applicant that he or she may require for his or her review; or
(c) review the application.
4 The Director of KLRCA may consult with any relevant party for the purpose of reviewing an application for exemption upon receipt of the application or of the further information referred to in paragraph 3(b) above.
5 The Director of KLRCA will thereafter make a recommendation to the Minister pursuant to section 40 of the Act, to –
(a) accept the application, with or without conditions; or
(b) decline the application, wholly or partly.
All applications for exemption must comply with the above procedure prior to the Director of KLRCA making the recommendation to the Minister of Works.
A copy of the KLRCA Rules and Procedure can be found at: www.klrca.org.my
Dated 28th day of April, 2014.
Professor Datuk Sundra Rajoo
Director of KLRCA