Our Head of Projects & Infrastructure, Kevin Richard Nathan and Associate, Nik Danial Arasy are pleased to have successfully represented a subcontractor in a High Court application against a principal employer for direct payment under Section 30 of the Construction Industry Payment and Adjudication Act 2012 (CIPAA).

In particular, the said application followed an adjudication decision given in favor of our client (the subcontractor) against the main contractor for a sum of approximately RM800,000.00.

Despite the adjudication decision, the main contractor failed or refused to pay the adjudicated amount to our client.

As a result, our client initiated High Court proceedings to obtain payment directly from the principal employer under Section 30 of CIPAA 2012, which the High Court ultimately allowed.

This case highlights the importance of Section 30 of CIPAA 2012 in the construction industry and further laments the effectiveness of the CIPAA regime in assisting unpaid parties in the construction industry.