Security of payment in Malaysian construction industry: issues on sub-contract's direct payment (original) (raw)
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Security of Payment Regime in Construction Industry: Are Malaysian Sub-Contractors Ready?
The Built & Human Environment …, 2011
In Malaysia, the particularly small sized sub-contractors are definitely benefited from payment provisions in the proposed Construction Industry Payment and Adjudication Act (CIPA Act), but need to enhance their knowledge in order to improve their awareness of the benefits of the Act. Accordingly, this on-going research attempts to introduce proper guidelines to the sub-contractors, in giving the knowledge, to claim for payment. Firstly, the research explored the problems and legal issues relating to payment default in law cases and standard forms of contract. By downloading from the Malayan Law Journal, cases that indicated the issues of payment to the subcontractors, were analyzed. It is found that on its relevancy, the adjudicator shall be equipped enough with the knowledge on the issues to become a good and reliable adjudicator, as well as sub-contractors will need to enhance their knowledge on the issues of payment in order to be successful in benefitting the proposed CIPA Act. However, as long as the CIPA Act remains in proposal, the sub-contractors have to bear with the knowledge of the current structure of payment mechanisms in the standard forms of contract, which are payment upon certification, direct payment from the employer, and contingent or conditional payment.
Sub-Contractors' readiness on the Malaysian security of payment legislation in construction industry
2010
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.
2011
In Malaysia, the particularly small sized subcontractors are definitely benefited from payment provisions in the proposed Construction Industry Payment and Adjudication Act (CIPA Act). However, they need to enhance their knowledge of the so-called the ‘Security of Payment’ Regime to benefits from the Act. Due to this, this on-going research attempts to introduce payment framework to the sub-contractors, in giving the knowledge, to claim for payment. This paper, though, is to disclose the finding of the level of knowledge that the sub-contractors have to the proposed Act, by preliminary analyzing the quantitative questionnaire survey. It was found that the adequacy of security of payment framework to the particularly small sized sub-contractors needs to be produced, and the analysis on effectiveness of the various avenues incorporated in the construction contract or statutes in the other developed countries as well as the proposed Act needs to be done. However, as long as the regime remains in proposal, the sub-contractors have to bear with the current structure of payment mechanisms in the standard forms of contract, which are payment upon certification, direct payment from the employer, and contingent or conditional payment.
wseas.us
In Malaysia, the sub-contractors have to bear with the current structure of payment mechanisms in the standard forms of contract, which are payment upon certification, direct payment from the employer, and contingent or conditional payment. However, with.the proposed Construction Industry Payment and Adjudication Act (CIPA Act), contingent payment will be no longer valid. This paper, though, is to disclose the findings on legal cases and sub-contractors’ perspective on contingent payment, by preliminary analyzing the quantitative questionnaire survey to the first 79 from the identified 1,500 sub-contractors throughout the country. Before that, from 186 cases, only 3 selected cases are analysed that thoroughly addressed the main issue of contingent payment. It is found out that the particularly small sized subcontractors are definitely benefited from payment provisions in the proposed Act. However, they need to enhance their knowledge of the so-called the ‘Security of Payment’ Regime to benefits from the proposed Act.
ipedr.com
In Malaysia, the sub-contractors have to bear with the current structure of payment mechanisms in the standard forms of contract, which are payment upon certification, direct payment from the employer, and contingent or conditional payment. However, ‘payment upon certification’ provision mostly applied for nomiinated sub-contracts and not to the domestic sub-contractors; thus the Construction Industry Payment and Adjudication (CIPA) is proposed. This paper, though, is to disclose the findings on legal cases and subcontractors’ perspective on payment upon certification, by preliminary analyzing the quantitative questionnaire survey to the first 81 from the identified 1,500 sub-contractors throughout the country. Before that, from 186 cases, only 12 selected cases are analysed that thoroughly addressed the main issue of payment upon certification. It is found out that the particularly small sized subcontractors are definitely need to enhance their knowledge of the so-called the ‘Security of Payment’ Regime to benefits from the proposed Act.
Payment Issue in Malaysian Construction Industry: Contractors' Perspective
This paper research entitled “Payment Issue in Malaysian Construction Industry by Contractor” intends to investigate the causes of late and non-payment in the Malaysian construction industry. Payment problems are old age issues that permeate the Malaysian construction industry. So often, contractors and parties in the construction industry complain either not getting paid or payments have been unduly delayed by the employer. A preliminary study was undertaken of 100 samples of contractors. The findings of the research shows that the potential major causes of late and non-payment are local attitude, delay in certification by consultant and paymaster's poor financial management. Based on the factor analysis findings, there are three factors that should be taken care which are under factor management and documentation, communication and contract, and culture and attitude. Findings of this study may assist the government and relevant parties in addressing problems associated to late and non-payment in an effective and timely manner to create a win-win situation for all parties in the Malaysian construction industry. The findings will be used as a platform in establishing the payment scenario in Malaysian construction industry prior to Construction Industry Payment Adjudication Act (CIPAA).
Payment scenario in the Malaysian constructionindustry prior to ClPAA
2013
This report is literature reviews undertaken to re-establish the state of payment problems in the Malaysian construction industry.The findings from this study will be used as a guide for further survey to measure the situation of the payment problems before the enactment of Construction lndustry Payment and Adjudication Act (CIPAA).There are journals selected to be included in this study.The purposes of the journal were to discover the financial issues of late and non-payment problem related to the causes of delay in construction projects. Most of the research in the journals was carried out by adopting a combination of document analysis, law cases and review of act and statue.The possible solution to overcome the issue to the late and non-payment in construction projects were also highlighted in the journals. Based on the discussion, this research gives a general view and provides a comprehensive result of the "Payment Scenario in the Malaysia Construction lndustry Prior to CI...