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Construction & Energy

CIPAA 2012: Is Retention Sum “Money Due or Payable” by the Principal Post-Termination of the Main Contractor?

Kinu Sdn Bhd v Kerajaan Malaysia (Jabatan Kerja Raya Malaysia) [W-01(C)(A)-523-08/2024]

Section 30 of the Construction Industry Payment and Adjudication Act 2012 (“CIPAA 2012”) enables a subcontractor to request direct payment from the principal or employer if the main contractor fails to pay the adjudicated amount in favour of the subcontractor, and where there is money due or payable by the employer to the main contractor. However, would the employer still be considered a “principal” for the purposes of Section 30 if the main contract restricts the main contractor from awarding the subcontract in the first place?

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