A Guide to Post-Adjudication Options Under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”)
The adjudication process under CIPAA is designed to provide a swift and cost-effective interim solution to payment disputes in the construction industry. However, once an adjudication decision is delivered, parties often ask: what’s next?
This article outlines the legal options available to both successful and unsuccessful parties after receiving an adjudication decision.
(A) If the Adjudication Decision Is in Your Favour
1. Wait for Payment
Where the adjudication decision is in your favour, the losing party is required to pay the adjudicated amount within the period specified in the adjudicator’s decision. This may occur without further enforcement.
2. Enforcement Through High Court
If payment is not made, you may register the adjudication decision as a judgment of the High Court pursuant to Section 28 of CIPAA. This allows you to enforce the decision as if it were a court judgment.
3. Legal Remedies for Non-Payment
Where the losing party refuses or fails to comply, you may consider these avenues:
(a) Statutory Demand and Winding-Up Proceedings:
- An unpaid adjudicated amount may constitute a clear debt sufficient to support a statutory demand, leading to a winding-up petition under Section 465(1)(e) of the Companies Act 2016.
(b) Writ of Seizure and Sale (WSS):
- Enables seizure and auction of the judgment debtor’s movable and/or immovable property under Order 45 Rule 12 of the Rules of Court 2012. An option to consider if you are aware that the judgment debtor owns valuable property that can be sold and the sale proceeds used to pay the debt owed.
(c) Garnishee Proceedings:
- Targeting monies owed to the judgment debtor by third parties (e.g. bank or employers) under Order 49 of the Rules of Court 2012.
(B) If the Adjudication Decision Is Not in Your Favour
1. Apply to Set Aside the Decision (Section 15 of CIPAA)
A limited remedy is available under Section 15 of CIPAA, where a party may apply to set aside the adjudication decision on specific statutory grounds:
- The decision was improperly procured through fraud or bribery;
- There has been a denial of natural justice;
- The adjudicator has not acted independently or impartially; or
- The adjudicator acted in excess of jurisdiction.
2. Apply to Stay the Decision (Section 16 of CIPAA)
The losing party may apply to the High Court for a stay of the adjudication decision under Section 16 of CIPAA. A stay may be granted where:
- An application to set aside the adjudication decision under Section 15 has been made; or
- The subject matter of the adjudication decision is pending final determination by arbitration or the court.
4. Amicable Resolution and Negotiation
Conclusion
The delivery of a CIPAA adjudication decision marks a turning point—but it is not the end of the legal process. Whether you are seeking to enforce or challenge a decision, each available course of action must be considered carefully in light of the factual matrix, the statutory framework, and judicial precedents. Prompt action, supported by legal advice, is essential to preserve and protect your interests.
This article is prepared and published by
Messrs. Ben Lee & Sharen
Advocates & Solicitors
General Disputes Resolution and Construction Division
