Supardi, Azizan and Adnan, Hamimah and Mohammad, Mohammad Fadhil (2010): Sub-Contractors’ readiness on the Malaysian security of payment legislation in construction industry. Published in: International Conference on Construction and Project Management (16. November 2010): pp. 248-252.
Download (295Kb) | Preview
In Malaysia, subcontractors are definitely benefited from payment provisions in the proposed Construction Industry Payment and Adjudication Act (CIPA Act). However, the particularly small sized sub-contractors need to enhance knowledge of the so-called the ‘Security of Payment’ Regime to improve their awareness of the benefits of the Act. Due to this, this on-going research attempts to introduce balance and proper guidelines to the sub-contractors, in giving the knowledge, to claim for payment and the main contractors able to make prompt payments. Before that, the research may first identify the payment provisions in the standard forms of contracts as well as in domestic sub-contracts especially on Contingent Payment, and exploring the problems and legal issues relating to payment default. Then, by determining the level of knowledge that the sub-contractors have to the proposed CIPA Act, and analysing the various avenues which improve the payment problem in the construction industry those have been incorporated in the construction contract or statutes in the other developed countries as well as the proposed CIPA Act, the aim may be achieved. The purpose of this paper, though, is to disclose the finding of the first objective of the on-going research. In the standard forms of construction contracts, currently, the payment structure to the sub-contractors are divided into three: payment upon certification, direct payment from the employer, and contingent payment or conditional payment. As long as the Malaysian ‘Security of Payment’ Regime remains in proposal, the sub-contractors have to bear with the current structure of payment mechanisms.
|Item Type:||MPRA Paper|
|Original Title:||Sub-Contractors’ readiness on the Malaysian security of payment legislation in construction industry|
|English Title:||Sub-Contractors’ readiness on the Malaysian security of payment legislation in construction industry|
|Keywords:||legal readiness; Malaysia; sub-contractors; security of payment; construction industry|
|Subjects:||K - Law and Economics > K3 - Other Substantive Areas of Law > K32 - Environmental, Health, and Safety Law
K - Law and Economics > K1 - Basic Areas of Law > K12 - Contract Law
L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction > L74 - Construction
|Depositing User:||Azizan Supardi|
|Date Deposited:||19. Oct 2011 17:50|
|Last Modified:||12. Feb 2013 18:27|
Abdullah, F. (2004). Construction industry and economic development: The Malaysian scene. Johor: Universiti Teknologi Malaysia.
Abidin, A. (2007). The profile of construction disputes. Masters dissertation. Retrieved from Universiti Teknologi Malaysia Institutional Repository.
Adnan, H. (2004). Joint venture projects in Malaysian construction industry: Factors critical to success. PhD thesis, Nottingham Trent University.
Ameer-Ali, N. A. N. (2006). A “Construction Industry Payment and Adjudication Act”: Reducing payment-default and increasing dispute resolution efficiency in construction. Masters Builders, 3, 4-14.
Ammer-Ali, N. A. N. (2007). One Step at a time. Construction Journal, 6, 18-21.
Anonymous. (2006). A contractor’s point of view on security of payment. Masters Builders, 3, 16-17.
Che-Munaaim, M. E. (2006). Payment woes among Malaysian contractors. Masters dissertation. Retrieved from Universiti Teknologi Malaysia Institutional Repository.
Che-Munaaim, M. E. (2009). The security of payment regime in Malaysia: Will it be effective?. Proceeding from COBRA 2009: The Construction and Building Research Conference, 1626-639. London: RICS.
Constable, A. (2006). Construction Industry Payment and Adjudication Legislation: The choice that lies ahead for Malaysia. International Construction Law Review, 78-88.
Construction Industry Development Board. (2007). Construction Industry Master Plan Malaysia 2006 – 2015. Kuala Lumpur: Construction Industry Development Board.
Fong, L. C. (2005). The Malaysian construction industry – The present dilemmas of unpaid contractors. Masters Builders, 4, 80-82.
Loulakis, M. C., & Santiago, S. J. (1998). Court rules against subcontractors in contingent payment clause dispute. Civil Engineering, 68(7).
May, A.L. & Siddiqi, K. (2006). Contingent-payment provision puzzle – Safeguarding against and unintended outcome. Journal of Architectural Engineering, 12, 158-162.
Mohd-Nazir, N. Z. (2006). Late payment problems among contractors in Malaysia. Masters dissertation. Retrieved from Universiti Teknologi Malaysia Institutional Repository.
Outhred, G. P. (2001). The Delphi Method: A demonstration of its use for specific research types. Proceeding from COBRA 2001: The RICS Foundation Construction and Building Research Conference, 1, 227-239. Glasgow: RICS Foundation.
Rajoo, S. (1999). The Malaysian standard form of building contract (The PAM 1998 form) (2nd ed.). Kuala Lumpur: Malayan Law Journal.
Robinson, N., Lavers, A. P., Tan, G. K. H.., & Chan, R. (1996). Construction Law in Singapore and Malaysia (2nd ed.). Singapore: Butterworths Asia.
Rosli, N. M. (2007). The use of standard form of domestic subcontract in Malaysian construction industry. Masters dissertation. Retrieved from Universiti Teknologi Malaysia Institutional Repository.
Sin, T. A. S. (2006). Payment issues – The present dilemmas of Malaysian construction industry. Masters dissertation. Retrieved from Universiti Teknologi Malaysia Institutional Repository.
Singh, H. (2003). Engineering and construction contracts management – Post-commencement practice. Kuala Lumpur: LexisNexis.
Singh, H. (2006). Construction of contingent payment clauses: Is there light at the end of the tunnel?. Malayan Law Journal Articles, 3.
Uher, T. E., & Brand, M. C. (2006). Claimants’ view of the performance of adjudication in New South Wales. Engineering, Construction and Architectural Management, 15(5), 470-484.
Uher, T. E., & Brand, M. C. (2008). Impact of the ‘Security of Payment’ Act in New South Wales on clients, contractors and subcontractors. Proceeding from BEAR 2008: Building Resilience: The CIB International Conference on Building Education and Research, 1274-1286. University of Salford, UK: School of the Built Environment.
Yin, L. S. (2007). A repudiatory breach in the construction industry – Non-payment. Masters dissertation. Retrieved from Universiti Teknologi Malaysia Institutional Repository.