KUALA LUMPUR (Feb 20): The Master Builders Association Malaysia (MBAM) has welcomed the implementation of the Construction Industry Payment and Adjudication Act (CIPAA), saying that it would facilitate regular and timely payment to contractors and sub-contractors.

It said, the Malaysian construction industry plays an important role in generating wealth for the country, and development of social and economic infrastructure and buildings, but has long been plagued by delayed payments and shortages of manpower.

"The implementation of the CIPAA would provide a mechanism for speedy dispute resolution, through adjudication, and provide remedies for the recovery of payments in the construction industry," MBAM said in a statement, today.

On the proposal by the government, that construction contracts worth RM20 million and less, be exempted from the Act, it said that  this would cause hardship for smaller sub-contractors.

It also seeks assistance from the government, and related agencies — such as the Construction Industry Development Board Malaysia (CIDB), to provide awareness and training to officers from project management teams, at state and district levels, in order to reduce the 'interim exemption' period from the proposed two years, if possible.

"However, for the good of the industry, we hope that this issue will not be a stumbling block for the Act to be implemented as soon as possible," it added.