Loke, M K; Lee, W P and Yap, J B H (2025) Effective practical strategies for statutory adjudication in construction disputes: Perspectives from adjudicators. International Journal of Construction Management, 25(12), pp. 1488-1499. ISSN 1562-3599
Abstract
Despite the enactment of several Security of Payment Acts, disputes still on the continuous rise, and the need for a more thorough understanding of the root causes and effective strategies for statutory adjudication. Disputes and payment defaults are two critical issues faced by stakeholders in the construction industry, yet resolving them through legal means, like arbitration and litigation, is costly and time-consuming. This paper explores the practical strategies for selecting adjudication to resolve disputes, with reference to Malaysia's Construction Industry Payment and Adjudication Act 2012 (CIPAA), via a questionnaire survey among adjudicators (N = 280). Feedback is analyzed using the Statistical Packages for Social Science and Relative Importance Index and validated by interviews with industry experts. Construction disputes identified include interim payment, payment certificates, withholding monies, final account, retention sum, variation order, certified value, professional fees, and imposition of liquidated damages that are suitable to resolve by adjudication effectively. It verified that there was no significant statistical difference in the findings among the diverse professions of the adjudicator. This study contributes to existing knowledge in disputes and statutory adjudication. It serves as a practical guide for stakeholders in selecting adjudication to resolve appropriate disputes and achieve finality while mitigating challengeable adjudication decisions.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | cipaa; construction disputes; statutory adjudication |
| Index terms: | litigation, dispute, package, retention, statutory adjudication, Malaysia, critical issue, adjudication, interim payment, arbitration, construction dispute, security of payment, construction industry, profession, adjudicator, social science, survey, liquidated damages, strategy, relative importance index, default, interview, final account, questionnaire, variation |
| Subjects: | contractual arrangements, legal systems, economic analysis, institututions, practitioner, theoretical framing, contractual remedy, Geography, warranties, risk assessment, data collection methods, dispute resolution, payment, industry analysis, management, contractual condition |
| Topics: | Human Resources, Contract Administration, Business Strategy, Research Practice, Roles and Professions, Legal Issues, Geographical Context, Risk Management, Procurement |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here