Malaysia Contribution- TH Heavy Engineering Bhd v Innovative Synergy Solutions Sdn Bhd -Subject Matter - Arbitration 0R Adjudication - Synopsis
Philip Teoh 5 Dec 2018

The Construction Industry Payment and Adjudication Act introduced Statutory Adjudication in Malaysia with effect from 15 April 2014. The Act applies to claims arising from construction work  from a construction contract. The Act defines "construction contract" meaning a "construction work contract" or "construction consultancy contract." Thus  if the contract in question is not a "construction contract" there can be no Statutory Adjudication under the Act. In the High Court case of TH Heavy Engineering Bhd v Innovative Synergy Solutions Sdn Bhd  [2018] MLJU 31, the issue raised was whether a claim relating to the installation of a fuel gas skid in a FPSO unit falls within the definition of ‘’construction work”. The wider question is whether construction work is limited to building and fixed structures. The Court in coming to its decision decided that the Act is not so limited and can cover a wider area including oil and gas.

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