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CIPAA Does Not Apply To Construction Contracts Entered Into Before 15.4.2014

The Federal Court in the case of Jack-in Pile (M) Sdn Bhd v. Bauer (Malaysia) Sdn Bhd has confirmed that the Construction Industry Payment & Adjudication Act 2012 (“CIPAA”) does not apply to construction contracts entered into before the coming into force of the Act, i.e. 15.4.2014.

Flowing from this, the Federal Court held that the entire adjudication proceedings from which the court action originated, including the adjudication decision “are rendered void”. Consequently, the Federal Court held that the adjudication decision in those proceedings ought to be set aside.

The Federal Court’s decision represents a complete reversal of the earlier position in UDA Holdings Bhd v Bisraya Construction Sdn Bhd [2015] 11 MLJ 499 where it was held that CIPAA may apply retrospectively to pre-CIPAA contracts save where expressly excluded under the Act.

For more information on the above or CIPAA, you may contact:

Lam Ko Luen                                   Victoria Loi                                           Jeremy Ooi
Partner                                             Partner                                                  Associate
[email protected]              [email protected]              jeremyooijr@shooklin.com.my