The Perception on the Importance of Construction Industry Payment and Adjudication Act (CIPAA) 2012 Towards Remedying Payment Disputes: A Research on Subcontractors in Kuching, Sarawak

Hadi, N A; Othman, Mohd Khairul Fitri; Dadi, A M

doi:10.1088/1757-899x/429/1/012105

Cited by 4 publications

(7 citation statements)

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“…One hundred (100) contractors participated in this questionnaire survey, contributing to Tables 2 and 3. A summary of the demographics and results of the questionnaire is summarised and presented below [5]. It can be concluded that the contractors' awareness in Malaysia about CIPAA still needs to be improved due to the contractors not being fully aware of CIPAA.…”

Section: Resultsmentioning

confidence: 99%

“…The critical solution proposed by CIPAA is to provide a much faster adjudication process than arbitration or court litigation, as the time limit for resolving a dispute is 45 days from receipt of the adjudication response. CIPAA has been brought into the industry to solve the payment dispute quickly and cost-effectively to ensure the construction project can run smoothly [5].…”

Section: Literature Reviewmentioning

confidence: 99%

“…The government created the CIPAA to solve payment disputes. The awareness about CIPAA still needs improvement, which means CIPAA still needs to be fully embraced by the construction industry [5]. Initiatives such as organising roadshows to advertise need to be revised to raise industry awareness [4].…”

Section: Introductionmentioning

confidence: 99%

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The Awareness Of CIPAA in Remedying Payment Issue Among Contractors In Malaysia

Kamil,

Amir,

Ejau

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

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Payment in the Malaysian construction industry has generally been an issue of concern. The government has embarked on severe afford to reduce payment default issues by enacting the Construction Industry Payment and Adjudication Act (CIPAA) in 2014. Since CIPAA was relatively new, the possibility of the industry’s key players needing more information and awareness about CIPAA is greater. Thus, this research aims to investigate the current level of awareness of CIPAA and identify the strategies to increase the awareness level of CIPAA among contractors in Malaysia. The research methods used for this study are quantitative. The data are collected from previous studies, journals, articles, questionnaire surveys, and interviews. The result shows that many contractors in Malaysia still need to be made aware of CIPAA. The level of awareness of the contractors in Malaysia towards CIPAA is still low. For future recommendations, the contractor in Malaysia must be provided with more guidelines and awareness regarding the CIPAA.

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Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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The Awareness Of CIPAA in Remedying Payment Issue Among Contractors In Malaysia

Kamil,

Amir,

Ejau

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

View full text Add to dashboard Cite

show abstract

“…If a construction project is delayed, it will have a significant influence on Malaysia's economic development [14]. Furthermore, to mitigate the bad impacts of the COVID-19 outbreak, a significant solution to the country's poor economic growth is likely to culminate in an economic recession [15].…”

Section: Covid-19 and Payment Issues In Malaysiamentioning

confidence: 99%

“…However, underlined that the domestic subcontractor's ability to respond to the main contractor is limited in the construction sector. Hadi et al (2018) added that due to the large number of parties involved in construction projects, any payment issues faced at higher hierarchies will create a chain of reactions through the lower hierarchies, which will have a significant financial impact.…”

Section: Introductionmentioning

confidence: 99%

Payment Predicaments: Exploring Factors and Remedies for Main Contractor-Subcontractor Dynamics in Malaysia

Mohd Fateh,

Nik Mat,

Abd Rahman

2024

AEJ

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Making timely and efficient payments is a key component of a project's success. In the Malaysian construction industry, payment delays by the principal contractor and client on construction projects are a major cause of worry. This research aims to address payment concerns that contractors frequently encounter on construction projects. The objectives of this research are to identify the factors that cause payment issues and to recommend potential solutions to improve the payment issues between main contractors and subcontractors. A questionnaire survey was deployed for this research, with 145 respondents involved. The collected data was analysed using the IBM Statistical Package for the Social Sciences (SPSS) software. The findings stated that post-Covid-19 is the main factor that causes payment issues between the main contractors and subcontractors. On the other hand, new payment mechanisms among developers or clients who unlawfully withhold payment are the potential solution agreed upon by the respondents as the potential solution to the issue. The findings of this research can be useful to the relevant party to minimise any issue with payment between the main contractor and subcontractors. This research is in line with Sustainable Development Goals (SDG) No. 8: Promote sustained, inclusive, and sustainable economic growth for all.

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Factors Causing Dispute in Construction Industry: Contractors’ Perspectives

Goh,

Wong,

Low

2023

JSCP

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Construction dispute contributing to the involvement of billions US dollars in lawsuits and Asia was reported as the continent that had the highest dollars involved. Sarawak, the largest state in Malaysia, faced similar issues and such dispute had been reported in leading to cost and time overrun on the multiple large-scale construction projects. This research investigates factors causing dispute within Sarawak construction industry, by targeting G7 contractors, who has no limitation in handling the scale of project, by using simple random sampling method. Eighty-six contractors responded to the online questionnaire, amounting to 34% valid response rate. Descriptive statistics and Mann-Whitney U-test were used to investigate the viewpoint of respondents. The findings revealed that delay issue as the key cause of dispute to the contractors in Sarawak. Mann-Whitney U-test showed statistical significant differences on the perspectives of contractors between less than or equal to 10 years working experiences and more than 10 years experiences on four causes: poor cost management, finance issue, delay issue and different interpretation of contract provisions. This research could serve as a guideline for the contractors in handling dispute to improve construction companies’ profit margin and construction projects’ efficiency.

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The Perception on the Importance of Construction Industry Payment and Adjudication Act (CIPAA) 2012 Towards Remedying Payment Disputes: A Research on Subcontractors in Kuching, Sarawak

Cited by 4 publications

References 1 publication

The Awareness Of CIPAA in Remedying Payment Issue Among Contractors In Malaysia

The Awareness Of CIPAA in Remedying Payment Issue Among Contractors In Malaysia

Payment Predicaments: Exploring Factors and Remedies for Main Contractor-Subcontractor Dynamics in Malaysia

Factors Causing Dispute in Construction Industry: Contractors’ Perspectives

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