CONSTRUCTION ADJUDICATION PROCESS (VOL. 3): COMMENCEMENT OF ADJUDICATION

Existence of a Payment Dispute

Before commencing adjudication proceedings under CIPAA 2012, there must first exist an actionable payment dispute. The dispute must strictly relate to matters and sums set out in the Payment Claim and Payment Response.

Where a non-paying party fails to serve a response, Section 6(4) of CIPAA 2012 provides that they are deemed to have disputed the entire claim, thereby crystallizing an immediate statutory dispute ripe for adjudication.

Statutory Right to Refer Dispute (Section 7)

Either party possesses the statutory right to refer the dispute to adjudication upon the expiry of 10 working days from the receipt of the Payment Claim:

Section 7(2) of CIPAA 2012:
“The right to refer a dispute to adjudication shall only be exercised after the expiry of the period to serve a payment response as specified under subsection 6(3).”

The unpaid party may refer any disputed portion of the claim. In response, the non-paying party may raise substantive defenses, including set-off, cross-claims, or abatement.

Notice of Adjudication (Section 8)

Pursuant to Section 8 of CIPAA 2012, the Claimant formally initiates the adjudication process by serving a written Notice of Adjudication on the Respondent. The notice must specify:

• The nature and legal description of the dispute;
• The precise monetary claim or remedy sought; and
• Supporting documents, contracts, and payment certificates.

Service must strictly comply with the modes set out in Section 38 (personal delivery, delivery during business hours, registered post, or agreed electronic means).

Registration with AIAC (Rule 2)

In addition to serving the Respondent, Rule 2 of the Asian International Arbitration Centre (AIAC) Adjudication Rules and Procedures requires the Claimant to formally register the adjudication matter with the AIAC by serving a copy of the Notice of Adjudication on the Director of the AIAC together with the prescribed registration fee.