Tag Archives: constructionindustry

Court rules that management corporation may sue developer for latent defects in common property

A statutory duty to “properly maintain the common property and keep it in a state of good and serviceable repair” shifts between a developer, a joint management committee and a management corporation subject to the timeline provided in the Strata Management Act 2013. However, when the baton is passed to a management corporation, does the management corporation have standing to sue the developer for any defects in the common property?

CIPAA: adjudicators’ powers to order remedies and interest when payment clause is unenforceable

Section 25 of the Construction Industry Payment and Adjudication Act (CIPAA) 2012 lists adjudicators’ extensive powers in adjudication proceedings, including the power to award financing costs and interest. The recent high court decision in First Commerce Sdn Bhd v Titan Vista Sdn Bhd and another case(1) examined the extent of an adjudicator’s powers to determine remedies and interest in unique circumstances where a payment clause was void and the default statutory implied payment provision in the CIPAA was pleaded.

CIPAA: Only Qualified Advocates for Adjudications in East Malaysia?

It is a well-known fact in Malaysia that the governing law of legal profession for Peninsular and East Malaysia differ from one another. Should one wish to commence a court action in the East Malaysia, an advocate qualified under the Sabah or Sarawak Advocates Ordinance would have to be appointed. However, what about adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) which allows parties to “be represented by any representative appointed by the party”. The High Court case of Tekun Cemerlang Sdn Bhd v Vinci Construction Grands Projets Sdn Bhd had recently shed light on this matter.

Section 30 of CIPAA – A Road Less Travelled, Now Widened

“The Construction Industry Payment and Adjudication Act 2012 (CIPAA) has been legislated to facilitate cash flow in the construction industry.” – a sentiment readily resonated nationally amongst judges and legal practitioners in the construction industry alike, amongst others.

Calling on performance bonds: new test for unconscionability?

The recent Federal Court decision in Catajaya Sdn Bhd v Shoppoint Sdn Bhd has breathed new life into the interpretation of termination clauses in contracts. Indeed, it sounded a cautionary note to the business community at large when the Federal Court held that termination clauses must be interpreted strictly.