Construction, Engineering & Arbitration
Masha Sylverster & Co advises and represents clients in construction- and engineering-related disputes, as well as arbitration proceedings arising from project contracts and commercial arrangements.
We provide practical legal support across the lifecycle of construction and engineering projects, with a focus on risk management and dispute resolution.
Legal Guidance for Project Disputes and Arbitration
Our practice covers disputes arising from construction and engineering projects, including claims relating to delays, variations, payment issues, and contractual interpretation.
We act for employers, contractors, consultants, and other stakeholders in both court proceedings and arbitration.
Construction & Arbitration Matters We Advise On
Construction & Engineering Disputes
Advice and representation in disputes involving construction and engineering contracts, including delay and payment claims.
Contract Advisory
Legal advice on construction and engineering contracts, including risk allocation and contractual obligations.
Arbitration Proceedings
Representation in domestic and international arbitration proceedings arising from construction and commercial disputes.
Project Claims & Variations
Advice on claims relating to variations, extensions of time, and project-related entitlements.
Dispute Resolution & Settlement
Assistance in negotiations and alternative dispute resolution aimed at resolving disputes efficiently.
Strategic, Technical, and Outcome-Focused Representation
Construction and engineering projects in Malaysia are governed by a range of standard form contracts — including the PAM Contract (published by Pertubuhan Akitek Malaysia), the JKR/PWD standard forms for government projects, and internationally recognised contracts such as FIDIC. These contracts regulate the relationship between employers, main contractors, subcontractors, and consultants, and provide the framework within which disputes are identified, notified, and resolved.
Disputes in this sector frequently arise from payment issues, construction delays, variations and scope changes, defects, and differing interpretations of contractual obligations. They often involve substantial sums and technical documentation. We approach such matters with the diligence, structure, and legal strategy required to achieve the best outcome for our clients.
CIPAA Adjudication
The Construction Industry Payment and Adjudication Act 2012 (CIPAA) provides a statutory fast-track mechanism for resolving payment disputes in the construction industry. A claimant may refer an unpaid sum to adjudication, with an adjudicator's decision typically made within 45 working days of acceptance. CIPAA decisions are binding and immediately enforceable as a court judgment, although they may be reviewed by arbitration or the High Court. We advise clients on both making and defending adjudication claims under CIPAA.
Arbitration of Construction Disputes
Many construction contracts in Malaysia contain mandatory arbitration clauses, providing that disputes be resolved by arbitration rather than court litigation. Arbitration under the Arbitration Act 2005 offers a confidential, flexible, and expert-driven process. We represent clients in domestic and international arbitration proceedings arising from construction and engineering contracts, from the appointment of the tribunal through to the enforcement of any award.
Contractual Claims and Entitlements
Construction contracts contain detailed provisions governing the rights and obligations of each party in relation to extensions of time, liquidated damages, variations, and additional payments. Strict compliance with contractual notification and claim procedures is typically a prerequisite to entitlement. We advise clients on their contractual rights and assist in the preparation and presentation of claims in a manner that complies with the contractual framework.
Contract Advisory and Risk Management
The most effective time to manage construction disputes is before they arise. We advise clients on the legal implications of standard and bespoke construction contracts at the pre-contract stage, identify risk allocation provisions, and advise on negotiation strategies to improve the client's contractual position. Early legal advice can prevent costly disputes from arising or assist in managing exposure if they do.
Frequently Asked Questions
What is CIPAA and how does it protect contractors in Malaysia?
The Construction Industry Payment and Adjudication Act 2012 (CIPAA) provides a fast-track mechanism for resolving payment disputes in the construction industry. A party that has not been paid under a construction contract may refer the dispute to adjudication, with a decision typically made within 45 working days. CIPAA decisions are immediately enforceable, providing a rapid remedy for unpaid contractors and subcontractors.
What is the difference between arbitration and court litigation for construction disputes?
Arbitration is a private, contractual dispute resolution process conducted before an appointed arbitrator or tribunal. It is typically faster and more flexible than court litigation, and proceedings and awards are generally confidential. Court litigation is a public process subject to court rules and open to appeal. Many construction contracts in Malaysia contain mandatory arbitration clauses, making arbitration the default forum for disputes.
What are common causes of construction disputes in Malaysia?
Common causes include late or non-payment, delay claims and extensions of time, variations and scope changes, defects and quality disputes, contractual interpretation disagreements, and termination disputes. Many disputes arise from inadequate contract administration or failure to comply with contractual notification requirements — making early legal advice on contract management invaluable.
Can I claim liquidated damages for project delays in Malaysia?
Yes, if the contract contains a liquidated and ascertained damages clause, the employer is entitled to deduct the agreed daily or weekly sum for delays caused by the contractor. The contractor may seek an extension of time if delays are caused by neutral or employer-caused events. Compliance with the contractual procedure for extension of time claims is essential to preserve any entitlement.
How long does construction arbitration take in Malaysia?
Duration varies depending on the complexity of the dispute, the number of witnesses, and the availability of the tribunal and parties. A relatively straightforward arbitration may conclude within 12 to 18 months, while complex multi-party construction disputes may take significantly longer. CIPAA adjudication may provide faster relief for payment disputes while a broader arbitration proceeds in parallel.