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The Government of Malaysia enacted the Construction Industry Payment and Adjudication Act 2012 (Act 746) with the aim of alleviating payment problems in the construction industry. Entering into force in April 2014, the Construction Industry Payment and Adjudication Act 2012 (Act 746) introduces a statutory adjudication process to resolve payment related disputes in the construction industry. This checklist details the provisions under the Construction Industry Payment and Adjudication Act 2012 (Act 746) and any other supplementary legal documents which determine the width of application of the Construction Industry Payment and Adjudication Act 2012 (Act 746).

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While contractual obligations and burdens are not assignable, there are instances that allow rights and benefits to be delegated. Nevertheless, there are instances where certain contractual obligations or burdens may be performed via subcontracting. Where allowed, subcontracting discharges the main contractor’s obligations to fulfil the main contract. However, the subcontracted obligations must then be performed in accordance to the main contract.

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