COMPARATIVE ANALYSIS ON CONSTRUCTION ADJUDICATION SYSTEMS TOWARDS EFFECTIVE IMPLEMENTATION OF STATUTORY ADJUDICATION IN MALAYSIA
DOI:
https://doi.org/10.11113/mjce.v30.16025Keywords:
Payment disputes, payment methods, construction dispute, statutory adjudication, alternative dispute resolution.Abstract
The dynamic nature of the construction industry makes it almost impossible to maintain a project without any disputes. Of all the addressed disputes in the construction industry, payment disputes are seen to be the most critical issue to be apprehended; as there is no doubt that consistent cashflow is important to distinguish the project’s development and achievements. Adjudication is one of the remedies to assist in arresting these problems, and the way to make an impact to the implementation of adjudication is by having it an enforceable statute. Along the years, fourteen adjudication Acts have been introduced within the Commonwealth countries. As the Construction Industry Payment and Adjudication Act 2012 is a hybrid of few adjudication systems in the world, a comparative study on three adjudication Acts: the Housing Grants, Construction and Regeneration Act 1996 of the UK – the first statutory adjudication implemented, Building and Construction Industry Security of Payment Act 1999 of Australia – consists of a unique set of judicial systems that needs to be considered separately and Building and Construction Industry Security of Payment Act 2004 of Singapore – one of the latest implemented statutory adjudication before CIPAA; were looked into, and possible matters affecting their effective implementation were emphasized. This review aims to assist in identifying the possible issues that might be faced by the Construction Industry Payment and Adjudication Act 2012 (CIPAA) as a newly legislated Act in Malaysia and possible corrective measures that could be undertaken to enhance its effectiveness.References
Akintoye, A., Renukappa, S., & Lal, H. (2012). The abolition of the “contracts in writing†rule in the 2009 Construction Act. International Journal of Law in the Built Environment, 4(2), 140–156.
Akintoye, A., Renukappa, S., & Lal, H. (2014). Developments in the United Kingdom Dispute Resolution Process. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 7(1), A4514004.
Ameer Ali, N. A. N., & Wilkinson, S. (2009). Statutory Adjudication Under Nine Commonwealth Jurisdictions--A User’s Perspective on Legislative Drafting Style. In Commonwealth Association of Legislative Counsel (CALC) Conference 2009, Hong Kong (pp. 30–77).
Brand, M. C., & Davenport, P. (2012). Adjudication in Australia. An analysis of the amendments introduced by the building and construction industry Security of Payment Amendment Act 2010 (NSW). International Journal of Law in the Built Environment, 4(3), 189–202.
Brand, M. C., & Davenport, P. (2015). Proposal for a “Dual Scheme†model statutory adjudication for the Australian building and construction industry. International Journal of Law in the Built Environment, 3(3), 252–268.
Brand, M. C., & Uher, T. (2010). Follow-up empirical study of the performance of the New South Wales construction industry security of payment legislation. International Journal of Law in the Built Environment, 2(1), 7–25.
Cahill, D., & Puybaraud, M.-C. (2003). Constructing the Team: The Latham Report (1994). In Construction Reports 1944–98 (pp. 145–160).
Dancaster, C. (2008). Construction Adjudication in the United Kingdom: Past, Present, and Future. Journal of Professional Issues in Engineering Education and Practice, 134(2), 204–208.
Davenport, P. (2010). Harmonisation of Chalk and Cheese. Australian Journal of Construction Economics and Building, 10(3), 36–50.
Department of Finance & Services Australia. (2012). Building and Construction Industry Security of Payment Act 1999 Adjudication Activity in New South Wales. Sydney.
Development Bureau (DEVB) of the Hong Kong Special Administrative Region (SAR) Government. (2015). Proposed Security of Payment Legislation for the Construction Industry Consultation. Hong Kong.
Gaitskell, R. (2007). International statutory adjudication: its development and impact. Construction Management and Economics, 25(7), 777–784.
Gould, N., & Linneman, C. (2008). Ten Years on: Review of Adjudication in the United Kingdom. Journal of Professional Issues in Engineering Education and Practice, 134(3), 298–301.
Kennedy, P. (2008). Evolution of statutory adjudication as a form of dispute resolution in the UK construction industry. Journal of Professional Issues in Engineering Education and Practice, 134(2), 214–219.
Kennedy, P., Milligan, J., Cattanach, L., & McCluskey, E. (2010). The development of statutory adjudication in the UK and its relationship with construction workload. In COBRA 2010 Research Conference.
Lee, C. K., Yiu, T. W., & Cheung, S. O. (2016). Selection and use of Alternative Dispute Resolution (ADR) in construction projects — Past and future research. International Journal of Project Management, 34(3), 494–507.
Lim, P. (2014). Proposed Reform for Singapore’s 2004 Building and Construction Industry Security of Payment Act. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 1–9.
Premble, S. (2016). An end to Construction Act exclusions? The Estates Gazette, (Jan 23), 78.
Rajoo, S. (2012). Dispute resolution for the construction industry in Malaysia. Newsletter of Kuala Lumpur Regional Centre for Arbitration, 1(2), 18–23.
Ross, S. (2013). Security of Payment Legislation in Australia : Issues with Adjudication Decisions. Journal of New Bsiness Ideas & Trends, 11(1), 47–53.
Sinden, G. F., Mason, J. R., Proverbs, D. G., & Booth, C. A. (2012). The new Construction Act: views and perceptions of construction industry stakeholders. Structural Survey, 30(4), 333–343.
Teo, P. J. (2008). Adjudication: Singapore Perspective. Journal of Professional Issues in Engineering Education and Practice, 134(2), 224–230.
Treacy, D., Spillane, J., & Tansey, P. (2016). Construction disputes in small to medium enterprises in Ireland during recession : identification of critical factors. International Journal of Law in the Built Environment, 8(1), -.
Uher, T. E., & Brand, M. C. (2008). Claimants’ view of the performance of adjudication in new South Wales. Engineering, Construction and Architectural Management, 15(5), 470–484.
Wong, P. S. P. (2015). Is Mandatory Alternative Dispute Resolution a Panacea to Attain Effective Payment Dispute Resolution? Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 7(1), A1814001.
Yung, P., & Rafferty, K. (2015). Statutory adjudication in Western Australia: adjudicators’ views. Engineering, Construction and Architectural Management, 22(1), 54–72.
