The principles of natural justice must be upheld in adjudication, including fair opportunity for both parties, and adjudicators must limit their jurisdiction to matters within the specific construction contract.

[1] PWC Corporation Sdn Bhd ("PWC") had filed an Originating Summons No WA-24C-107-06-2017 dated 21 June 2017 ("Enforcement Application") to enforce an Adjudication Decision and Ireka Engineering & Construction Sdn Bhd ("Ireka") had subsequent to the Enforcement Application, filed an Originating Summons No WA-24C-117-07-2017 ("Setting Aside and Stay Application").

[2] The Enforcement Application was filed by PWC to enforce, under s 28 of the Construction Industry Payment and Adjudication Act 2012 ("CIPAA 2012") an Adjudication Decision by the Adjudicator dated 5 June 2017.

[3] The Setting Aside & Stay Application was filed by Ireka to set aside the Adjudication Decision, and if this is not granted by this Court, an alternative order for stay of the Adjudication Decision.

[4] The application was made under ss 15 and 16 of the CIPAA by Ireka in respect of the Setting Aside & Stay Application.

Project

[5] Under a bespoke Domestic Subcontract dated 6 July 2010 ("Subcontract"), Ireka appointed PWC as the subcontractor for a project known as "Cadangan Membina Sebuah Bangunan Komersil 26 Tingkat yang Mengandungi Komplek Membeli-Belah, Ruang Tempat Letak Kereta, Pusat Konvensyen/ Kemudahan-Kemudahan Dan Bilik-Bilik Hotel Di Atas Sebahagian lot T.L. 077579394 (LA 20-01070435), Sandakan Harbour Square, Daerah Sandakan, Bandar Sandakan, Sabah untuk ICSD Venture Sdn Bhd" ("Project") for a contract sum of RM3,380,000.00.

[6] It was a term of the Subcontract that PWC shall provide skilled labour, materials, tools, equipment and the necessary machineries for the execution and completion of the design, fabrication, supply and installation of aluminium glazed windows and doors, louvres panels, feature fins and canopies works for the Project ("Subcontract Works").

[7] Ireka had further instructed PWC to perform additional works ("Additional Works"). This was done through site instructions issued by Ireka from March 2011 to February 2012.

[8] PWC completed the Subcontract Works on or about 11 May 2012. Between January 2011 to October 2014, PWC had issued 16 Progress Claims including its Final Claim to claim for the Works and Additional Works completed. The total sum claimed by PWC is RM4,159,783.08.

[9] From March 2011 to September 2014, Ireka had issued 16 Certificates of Payments to certify the works completed by PWC pursuant to its Progress and Final Claims.

Problem

[10] PWC had claimed for RM889,229.01 for the Subcontract Works done pursuant to its Progress Claims Nos. 1 to 16 after taking into account the sum of RM3,270,554.07 paid by Ireka for a total value of work done of RM4,159,783 August

[11] As no payment was forthcoming from Ireka, PWC proceeded with Statutory Adjudication under the CIPAA.

Proceedings In Adjudication

[12] On or about 22 November 2016, PWC served a Payment Claim dated 21 November 2016 on Ireka to claim for RM889,229.01 for the works done pursuant to its Progress Claims Nos. 1 to 16.

[13] On 6 December 2016, Ireka served its Payment Response to deny PWCs Payment Claim. Ireka also made a cross-claim and set-off against PWC for Liquidated and Ascertained Damages ("LAD") amounting to RM3,723,000.00 and an overpayment amounting to RM17,790.45 for Certificate of Payment No 16 dated 18 April 2016 against Certificate of Payment No 17 dated 1 December 2016 from another Subcontract Reference no: IECSB/KL Sentral Pkg 3/140/3.1/022-HQ under Letter of Acceptance dated 24 August 2011 between Ireka and PWC. This is the KL Sentral Project under a separate contract whereas the present Claim is with respect to the Sandakan Project under the above Subcontract.

[14] On 14 March 2017, PWC as the Claimant in the Adjudication, served its Adjudication Claim on Ireka.