If you are working in the construction industry or associating with construction players, you might get familiar with the payment dispute issues. It occurred between two parties within a similar line of work like in Ipoh, Perak and Kuala Lumpur. The unpaid money will be considered as a debt and the unpaid party represents the victim. Most of the time, the disputes happened between the main contractor and the sub-contractor. It can be people involved in the construction work and also the construction consultancy contract.
Typically, the issue arises as some of the main contractors practiced “Pay-When-Paid” where the sub-contractor will only get paid for the job completed when the main contractor receives the payment from the clients. It leads to delayed payment, underpayment and not paying at all. The issue not only affecting the life of an individual or organization, subsequently, it also contributes negatively to the economy of the country especially in developing cities like Ipoh, Perak and Kuala Lumpur. Hence, the debt collection is a must as the payment should be made at the right time and with the exact amount. It can be caused because of lack of proper training on debt collection.
When it comes to payment disputes, there are several challenges encounter by the construction players that lead to the problem. One of the challenges is multiple contracts are signed by various parties. This means by in a single construction project, there are several contracts that are being agreed and negotiated with multiple investors. Next, the construction market is competitive as the contractors need to undergo a competitive process before the client gives the winning contractor the project. Last not least, it occurred due to the lack of best business skills among the construction players that lead to cash flow mismanagement and payment delays. As a consequence, the issue contributes to another crucial issue that needs to be fixed. A proper training will help to enhance their skills.
A payment act was enacted and legislated by the Parliament of Malaysia on 15 April 2014. The act was identified as Construction Industry Payment and Adjudication Act (CIPAA) 2012. It came into action as an alternative to resolve the issue and debt collection in a speedy and effective manner. Most of the construction players especially in Ipoh, Perak and Kuala Lumpur have a low level of awareness and knowledge regarding CIPAA 2012. It will present another problem as they have a lack of information and have no idea where to head when they encounter the payment dispute in the future. Thus, training or seminar pertaining to debt collection is essential to educate the group of people to elevate their comprehension.
If you are among the affected party in the dispute, you can have the debt collection with CIPAA 2012. It comprises of several procedures and processes under adjudication. Keen to know more about it? Let’s join our upcoming training on debt collection that will be held in Ipoh, Perak and Kuala Lumpur. You can choose your venue based on your preference. Let’s grab the chance and see you soon!
