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 Adjudication Act 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.

Construction Industry Payment and(CIPA Act), contingent payment will be no longer valid. Full Paper [PDF-1] [PDF-2]

To cite this paper : Azizan Supardi and Hamimah Adnan (2011) Security of Payment in Malaysian Construction Industry: Eradication of Sub-contract’s Contingent Payment. International Conference on Energy, Environment, Entrepreneurship, Innovation, Lanzarote, Canary Islands, Spain, 27 - 29 May 2011, pp. 116-121