MY  Market guide

Construction payment in Malaysia

Malaysian payment is governed by CIPAA 2012, the Construction Industry Payment and Adjudication Act. Payment claims and payment responses run to statutory deadlines, with a right to adjudication, and conditional payment terms such as pay-when-paid are void. Construction is subject to SST.

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10 guides for Malaysia

Malaysia Progress payment claims under CIPAA 2012 in Malaysia CIPAA 2012 gives every contractor a statutory right to monthly or staged payment. The payment claim is where that right is exercised, so it has to be built right. 6 min read Malaysia The payment response and the 10 working day rule under CIPAA 2012 CIPAA 2012 gives the payer ten working days to respond to a payment claim. Miss it, and the whole claimed sum is treated as disputed but unanswered. 6 min read Malaysia Valuing variations on a PAM contract in Malaysia Instructed change carries value that belongs in the next payment claim. Value it against the contract rates on a PAM form and get it into the claim while it is fresh. 6 min read Malaysia Retention on a PAM contract in Malaysia Retention is money you have earned but not been paid. Track what is held, when half releases and when the balance falls due, or it quietly stays with the payer. 5 min read Malaysia SST 6% on construction valuations in Malaysia From 1 July 2025, service tax at six per cent applies to construction work services. Residential building is excluded and B2B relief is available. Value net, add SST on top. 6 min read Malaysia Cash flow forecasting on the CIPAA payment cycle in Malaysia A cash forecast is only as good as the dates behind it. Build the curve on the CIPAA claim and response mechanism and the contract payment term, not on hope. 6 min read Malaysia Agreeing the final account on a PAM contract in Malaysia The final account settles the contract sum for good. Close the measured works, the variation account and retention on evidence, not on a round number nobody can trace. 6 min read Malaysia Extension of time and delay notices on a PAM contract in Malaysia An extension of time protects the completion date and the contractor exposure to damages. It stands or falls on the notice and the records that back it. 6 min read Malaysia Practical completion on a PAM contract in Malaysia Practical completion is the pivot of the job. It releases half the retention, ends damages exposure and starts the defects period, so the date it is certified matters. 5 min read Malaysia Counting the days and adjudication under CIPAA 2012 in Malaysia Every CIPAA deadline is counted in working days and the right to adjudicate a payment dispute runs from them. Count wrong and the protection quietly slips. 6 min read

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