Security of Payment

In Malaysia, the particularly small sized sub-contractors need to enhance knowledge of the proposed Construction Industry Payment and Adjudication Act (CIPA Act) to improve their awareness of the benefits of the Act. Due to this, this research attempts to introduce balance and proper guidelines to the sub-contractors, in giving the knowledge, to claim for payment. Before that, this research identifying the payment provisions in the standard forms of contracts as well as in domestic sub-contracts especially on Contingent Payment, exploring the problems and legal issues relating to payment default, determining the level of knowledge that the sub-contractors have to the proposed CIPA Act, and analysing the various avenues which improve the payment problem in the construction industry those have been incorporated in the construction contract or statutes in the other developed countries as well as the proposed CIPA Act. As long as the Malaysian 'Security of Payment' Regime remains in proposal, currently, the sub-contractors have to bear with the current structure of payment mechanisms, which are 'payment upon certification', 'direct payment' from the employer, and 'contingent payment'.