Adjudication in the Malaysian Construction Industry
Student Soo Mei, Yap
Student No 100071957
Proposed Topic Adjudication in the Malaysian Construction Industry
Background for the Research
Adjudication is one of the alternative dispute resolution procedures for resolving disputes, which giving of a non-binding opinion at the request of a party or parties to a dispute, and either party may refer to arbitration at a later stage. In the Latham Report (1994) recommended, inter alia, adjudication as the standard first instance dispute resolution technique in construction contracts.
In response, statutory-based adjudication was initially a phenomenon in the United Kingdom through the introduction of the Housing Grant and Construction Regeneration Act (HGCR Act) 1996 pursuant to Sir Michael Latham reports “Constructing the Team” in 1994 which reported the woes of the UK’s Construction Industry. It then spread to other countries. There are similar legislation has been introduced in the Australian states of Queensland, New South Wales, Victoria, and Western Australia, as well as some Asian countries. These include:
1. Building and Construction Industry Security of Payment Act 1999 amended in 2002 (New South Wales, Australia)
2. Building and Construction Industry of Payment Act 2002 (Victoria, Australia)
3. Construction Industry Payment Bill 2002 (Western Australia)
4. Construction Contracts (Security of Payment) Act 2004 (Northern Territory, Australia)
5. Construction Contracts Act 2002 (New Zealand)
6. Building and Construction Industry Security of Payment Act 2004 (Singapore)
Nevertheless, adjudication is still a potential concept which has not been explored to its fullest within Malaysia. In Malaysian construction industry, the common methods of settling construction disputes are through litigation and arbitration which are time-consuming and are often expensive.
Lord Denning in his judgment in the Court of Appeal in Dawnays Ltd v Minter Ltd has this to say
Student No 100071957
Proposed Topic Adjudication in the Malaysian Construction Industry
Background for the Research
Adjudication is one of the alternative dispute resolution procedures for resolving disputes, which giving of a non-binding opinion at the request of a party or parties to a dispute, and either party may refer to arbitration at a later stage. In the Latham Report (1994) recommended, inter alia, adjudication as the standard first instance dispute resolution technique in construction contracts.
In response, statutory-based adjudication was initially a phenomenon in the United Kingdom through the introduction of the Housing Grant and Construction Regeneration Act (HGCR Act) 1996 pursuant to Sir Michael Latham reports “Constructing the Team” in 1994 which reported the woes of the UK’s Construction Industry. It then spread to other countries. There are similar legislation has been introduced in the Australian states of Queensland, New South Wales, Victoria, and Western Australia, as well as some Asian countries. These include:
1. Building and Construction Industry Security of Payment Act 1999 amended in 2002 (New South Wales, Australia)
2. Building and Construction Industry of Payment Act 2002 (Victoria, Australia)
3. Construction Industry Payment Bill 2002 (Western Australia)
4. Construction Contracts (Security of Payment) Act 2004 (Northern Territory, Australia)
5. Construction Contracts Act 2002 (New Zealand)
6. Building and Construction Industry Security of Payment Act 2004 (Singapore)
Nevertheless, adjudication is still a potential concept which has not been explored to its fullest within Malaysia. In Malaysian construction industry, the common methods of settling construction disputes are through litigation and arbitration which are time-consuming and are often expensive.
Lord Denning in his judgment in the Court of Appeal in Dawnays Ltd v Minter Ltd has this to say