November 11, 2014
KLRCA CIPAA CIRCULAR 1A – Scope of Application of CIPAA & The Administration of Adjudication cases by KLRCA
KLRCA CIPAA CIRCULAR 1A
CIRCULAR BY KLRCA ON THE SCOPE OF APPLICATION OF CIPAA AND THE ADMINISTRATION OF ADJUDICATION CASES BY KLRCA
The KLRCA through Circular 01 issued on 23rd April 2014 had advised that the KLRCA would administer adjudication cases in accordance with the position taken therein.
On the 31st October 2014, the High Court 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), had determined that CIPAA 2012 was intended to apply retrospectively, namely, subject to sections 3 and 41 of the Act, the Act applies to every construction contract made in writing within the meaning of Section 4 of the Act regardless of when it was made and under which a payment claim is made.
Section 3 provides that CIPAA 2012 shall not apply to a construction contract entered into by a natural person for any construction work in respect of any building which is less than four storeys high and which is wholly intended for his occupation.
Section 41 provides that CIPAA 2012 shall not affect the proceedings relating to any payment dispute under a construction contract which had been commenced in Court or Arbitration before the coming into operation of the Act.
Given that the issue relating to the scope of the application of CIPAA 2012 has been determined by the High Court, the KLRCA will comply and administer adjudication cases in accordance with the decision of the High Court.
Therefore the KLRCA will henceforth register and administer adjudication cases filed with it under CIPAA 2012 provided that the relevant requirements of the KLRCA Adjudication Rules & Procedure are complied with.
This Circular 1A supersedes Circular 1 issued on 23rd April 2014 with immediate effect.
Dated this 11th November 2014.
PROFESSOR DATUK SUNDRA RAJOO
Director of KLRCA