The construction sector is one of the economic sectors that is permitted to operate during the second Movement Control Order. The Construction Industry Development Board of Malaysia's website recently published the standard operating procedure that companies with permission to operate during MCO 2.0 must comply with when carrying out construction works. This article discusses this standard operating procedure's key points.
Following the prime minister's announcement regarding the imposition of the Movement Control Order (MCO 2.0) in Johor, Malacca, Kuala Lumpur, Putrajaya and Labuan, Selangor, Penang and Sabah, the Ministry of International Trade and Industry issued the list of economic sectors that can operate during MCO 2.0, which includes the construction sector. The Ministry of Works subsequently issued a press statement clarifying that critical construction works can be carried out during MCO 2.0.
The surge in the number of disputes involving the statutory adjudication mechanism in the Construction Industry Payment and Adjudication Act (CIPAA) 2012 has led to a significant number of consequential challenges to adjudication decisions in the courts. This article highlights the notable decisions handed down by the Malaysian courts in 2019 and their effect on the future application of the CIPAA.
A contractor and claimant, Econpile, has had verdicts delivered by both the Court of Appeal and the High Court on, among other things, the issue of whether an adjudicator has the jurisdiction to decide on a payment claim when the contract has been terminated and whether the contractor is entitled to commence an adjudication proceeding under the Construction Industry Payment and Adjudication Act 2012 after the contract has been terminated.
The Ministry of Works has issued a standard operating procedure for the construction industry (Construction SOP), effective for the duration of the Recovery Movement Control Order (RMCO). The ministry has also published FAQs addressing the common queries arising from the Construction SOP. The Construction SOP previously issued by the Ministry of Works for the Conditional Movement Control Order continues to apply for the duration of the RMCO subject to the amendments highlighted in this article.