CIPAA applies to a construction contract made in writing, for construction work carried out wholly or partly in Malaysia. That includes a construction contract entered into by the Government.
It does not apply to a construction contract entered into on or before 15 April 2014. The Federal Court decided this in Jack-in Pile (M) Sdn Bhd v Bauer (Malaysia) Sdn Bhd. A contract from before that date cannot be referred to CIPAA.
The residential exception
CIPAA does not apply where a natural person enters a construction contract for a building of fewer than four storeys, which is wholly intended for that person’s own occupation. Occupation can be residential or commercial, as the High Court considered in Liew Piang Voon v WLT Project Management Sdn Bhd.
Each limb of the exception must be satisfied. A company is not a natural person. A building of four storeys or more falls outside the exception, as does a building that is not wholly intended for occupation by the person who entered into the contract.
Emergency government work
CIPAA also does not apply to government construction carried out urgently because of a natural disaster, flood, landslide, ground subsidence, fire, or a similar emergency. Those contracts cannot be referred under the Act.
These notes describe the legislation and the scope of our usual instructions. They are not advice on a particular contract. A consultation may be arranged here.