Tay & Partners | CIPAA 2012 – Key Insights for the Contractors

In the construction industry, cash flow is king. The Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) came into force on 15 April 2014 with its main objective to resolve payment dispute and improve the contractors’ cash flow by providing a speedy, timely and cost-effective dispute resolution mechanism through adjudication.

Under CIPAA, an adjudication proceeding generally takes around 100 working days from the date of serving the payment claim until the release of the adjudication decision. The adjudication decision is binding until it is set aside by the High Court or the dispute is finally decided in court litigation or arbitration. This means that the contractors do not have to endure lengthy court battles just to get paid — they have a clear path to speedier resolution of dispute through adjudication.

In this article, we will address some common concerns faced by the contractors and subcontractors, to provide a better understanding of CIPAA 2012.

Read the full article here.