The first two Construction Courts in Malaysia, respectively in Kuala Lumpur and Shah Alam, were launched today by the Chief Justice of Malaysia Arifin Zakaria.

 

These specially designated courts to deal with disputes in the construction industry came into being in April last year, after the Construction Industry Development Board (CIDB) made a proposal to the judiciary in January 2013.

 

Works Minister Fadillah Yusof said in his welcoming remarks that the establishment of the courts “...will certainly transform the way construction businesses in the country operate. The construction industry stakeholders can now have their disputes resolved by judges with specialist knowledge and experience in construction cases.”

The establishment of the courts has put Malaysia as the second country in the world with a specialist court for construction. The first is the United Kingdom, which established the Technology and Construction Court (or TCC).

The initiative for establishing a Construction Court began alongside proposals for the Construction Industry Payment and Adjudication Act or CIPAA.

The necessity for a specialist construction court become urgent as this Act is expected to come into effect some time after it was gazetted in 2012.

Implementing CIPAA will bring great relief to the construction industry in Malaysia as it provides a significant potential remedy to serious problems associated with delayed and non-payment and protracted resolution of construction disputes.

The Construction Courts will greatly enhance other aspects of justice in the construction industry.

Through adjudication and with the support of the courts in understanding the historical delays and expenses associated with construction cases, the industry can better focus on getting on with their work rather than being involved in unwarranted protracted disputes.

Moving forward, the CIDB has established a unit to track and analyse cases brought to the construction courts to establish what the common causes of disputes within the industry are.

Moreover, CIDB plans to get a more accurate insight on issues specific to the Malaysian construction industry.

With the construction courts already operating for one year, CIDB look forward to a working with the Judiciary to access and analyse the cases which have already been completed.

- Bernama