Updated in 10/12/2011 9:59:37 AM      Viewed: 260 times      (Proceedings)
3rd International Conference on Mechanical and Electrical Technology 3: 407-412 (2011)

Security of Payment in Malaysian Construction Industry: Issues on Sub-contract’S Direct Payment

Azizan Supardi , Hamimah Adnan , American Society of Mechanical Engineers Press
In Malaysia, 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, „direct payment‟ provision is applied for in most of the nominated sub-contracts and not to the domestic sub-contractors; thus the Construction Industry Payment and Adjudication (CIPA) Act is proposed. This paper, though, is to disclose the findings on legal cases and sub-contractors‟ perspective on direct payment, 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 5 selected cases are analysed that thoroughly addressed the judgment of direct payment. 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. [Visit://azizansupardi.blogspot.com]
ISBN: 978-0-7918-5981-0