The Adjudication Procedure

The adjudication procedure and the respective timeline are clearly provided in the Act.
For the ease of reference, the relevant adjudication process is summarized in the following diagram:-


Section 13 of the Act provides that the adjudicator’s decision is binding, unless it is being set aside by the High Court of Malaya, the dispute is finally decided by arbitration or court or the subject matter has been settled between the parties. The grounds for setting aside are provided in Section 15 of the Act as follow:-

(a) the decision was procured through fraud or bribery;
(b) there is a denial of natural justice;
(c) the adjudicator did not act independently or impartially; or
(d) the adjudicator acted in excess of his jurisdiction.

If the losing party refuses to make payment after an adjudicator decision, the winning party may apply to the High Court for the enforcement of the decision under Section 28 of the Act. Once order has been granted, the decision can be enforced by any modes provided under the Rules of Court and any other laws, such as the Companies Act 1965.Further, under Section 29 of the Act, the winning party may suspend or reduce the rate of progress of the construction works under the contract if the adjudicated amount is not paid in full or in part by giving a fourteen (14) days written notice to the losing party of its intention to do so. Section 29 specifically provided that the party exercise this right shall not be treated as breaching the contract, is entitled to a fair and reasonable extension of time to complete his obligation under the contract, is entitled to recover any loss or expenses incurred as a result of the suspension or reduction from the losing party.