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CIPAA (Requirements)

By meeting these requirements, a construction contract can fall under the purview of CIPAA, allowing for the resolution of payment disputes through adjudication.

Written Contract

Under Section 2, CIPAA applies only if there is a "Written Contract." However, this does not need to be a formal or signed contract. The definition of a "written contract" is broad and includes:

  • Letters

  • Correspondences

  • Purchase Orders (PO)

  • Delivery Orders (DO)

This broad interpretation is supported by guidelines from the Asian International Arbitration Centre (AIAC), CIPAA's administrative center.

Construction Contract

The contract must relate to construction work or construction consultancy. CIPAA 2012 defines "construction work" to include:

  • Any building, erection, edifice, structure, wall, fence, or chimney

  • Road, harbour works, railway, cableway, canal, or aerodrome

  • Drainage, irrigation, or river control work

  • Electrical, mechanical, water, gas, oil, petrochemical, or telecommunication work

  • Bridge, viaduct, dam, reservoir, earthworks, pipeline, sewer, aqueduct, culvert, drive, shaft, tunnel, or reclamation work

This definition also covers work integral to, preparatory to, or temporary for such construction, including:

  • Site clearance, soil investigation, and improvement

  • Earth-moving, excavation, and laying of foundation

  • Site restoration and landscaping

  • Procurement of construction materials, equipment, or workers

Construction consultancy work includes:

  • Planning and feasibility studies

  • Architectural work

  • Engineering

  • Surveying

  • Exterior and interior decoration

  • Landscaping

  • Project management services

Post 15.04.2014 Contracts

CIPAA applies only to construction contracts executed after its enactment date, April 15, 2014.

Malaysian Construction Work

CIPAA applies solely to construction work or construction consultancy work carried out within Malaysia, whether wholly or partly.

Exclusion for Buildings Below Four Storeys for Self-Occupation

Under Section 3 of CIPAA 2012, CIPAA does not apply to buildings that are:

  • Less than four storeys high

  • Intended wholly for the owner's occupation

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