CIPAA (Enforcement)

Section 28: Enforcement of Adjudication as Judgment

One method to enforce a CIPAA Adjudication Decision is by filing an enforcement application in the High Court. Once the High Court grants the order, the winning party can execute the decision using the execution processes available under the Rules of Court 2012, such as:

• Writ of Seizure and Sale: Seizing and selling the losing party's property.

• Garnishee Proceedings: Garnishing money from the losing party’s bank accounts or other debtors.

• Judgment Debtor Summons: Compelling the losing party to explain why the judgment has not been satisfied.

Section 29: Suspension or Reduction of Rate of Progress of Performance

If the project is still in progress and the losing party fails to comply with the Adjudication Decision, the winning party may suspend or slow down their work. This action will not be considered a breach of contract. Furthermore, the winning party is entitled to an extension of time and compensation for any losses or expenses incurred due to the suspension or slowdown. This often pressures the losing party to pay the adjudicated sum to avoid potential liquidated ascertained damages (LAD) or delay damages to the employer or end purchasers.

Section 30: Direct Payment by Principal

Under Section 30 of CIPAA, the winning party can enforce the Adjudication Decision by requesting direct payment from the principal of the losing party. The principal is obligated to pay the winning party any money due to the losing party, even if there is no direct contract between the principal and the winning party.

Winding Up Proceeding

The winning party may issue a Statutory Notice of Demand to the losing party under Section 466 of the Companies Act 2016 based on the Adjudication Decision. If the losing party fails to satisfy the demand within 21 days, the winning party can initiate winding-up proceedings to liquidate the losing party’s assets to recover the adjudicated sum.