The problems of cash flow in the construction industry is a common phenomenon. It happens anywher... more The problems of cash flow in the construction industry is a common phenomenon. It happens anywhere and Malaysia is no exception. The main purpose of this research is to study the effectiveness of CIPAA by investigating whether it has eased the problems of cash flow in the construction industry. Since construction industry plays a pivotal role in national economic, its problems need to be rectified as soon as possible. CIPAA is enacted, thereby. However, whether CIPAA has served its purpose remains a question. This study intends to look into this question. A questionnaire survey was conducted to solicit the opinions or feedbacks from main contractors, consultant QS and subcontractors. 35 respondents took part in the survey. This study found that cash flow has become smoother since CIPAA is introduced. However, conditional payment and problem of timeliness in paying remain. Also, most of the construction industry players are satisfied with the duration of CIPAA. Furthermore, CIPAA is considered as a relatively affordable and speedy dispute resolution mechanism when compared to arbitration or litigation, given a rating of 4 out of 5, overall. Issues on breach of natural justice and jurisdiction problems of adjudicators are found to be the concern of the industry players. It is also learnt that the construction industry stakeholders think that it is fair to have adjudication reply with no further ground for respondent to response to that reply. The power to award adjudication cost given to adjudicator is seen as a deterrent towards CIPAA, especially to small and medium-sized company. Extension of coverage of CIPAA to oral and “partly oral, partly written” construction contracts and adjudication review are sought after.
The problems of cash flow in the construction industry is a common phenomenon. It happens anywher... more The problems of cash flow in the construction industry is a common phenomenon. It happens anywhere and Malaysia is no exception. The main purpose of this research is to study the effectiveness of CIPAA by investigating whether it has eased the problems of cash flow in the construction industry. Since construction industry plays a pivotal role in national economic, its problems need to be rectified as soon as possible. CIPAA is enacted, thereby. However, whether CIPAA has served its purpose remains a question. This study intends to look into this question. A questionnaire survey was conducted to solicit the opinions or feedbacks from main contractors, consultant QS and subcontractors. 35 respondents took part in the survey. This study found that cash flow has become smoother since CIPAA is introduced. However, conditional payment and problem of timeliness in paying remain. Also, most of the construction industry players are satisfied with the duration of CIPAA. Furthermore, CIPAA is considered as a relatively affordable and speedy dispute resolution mechanism when compared to arbitration or litigation, given a rating of 4 out of 5, overall. Issues on breach of natural justice and jurisdiction problems of adjudicators are found to be the concern of the industry players. It is also learnt that the construction industry stakeholders think that it is fair to have adjudication reply with no further ground for respondent to response to that reply. The power to award adjudication cost given to adjudicator is seen as a deterrent towards CIPAA, especially to small and medium-sized company. Extension of coverage of CIPAA to oral and “partly oral, partly written” construction contracts and adjudication review are sought after.
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