The Subcontractor Demand For Payment Letter is a crucial document in the Malaysian construction industry, used when a subcontractor needs to formally request payment for completed works or services from a main contractor or other paying party. This document is specifically structured to comply with the Construction Industry Payment and Adjudication Act 2012 (CIPAA) and other relevant Malaysian legislation. It should be used when informal payment requests have been unsuccessful or when establishing a formal record of payment demand is necessary. The letter typically includes comprehensive details about the project, completed works, payment calculations, and supporting evidence, serving as a prerequisite to potential legal action under CIPAA if payment is not received. This document is particularly important in Malaysia's construction sector as it helps protect subcontractors' rights to timely payment and can be used as evidence in subsequent adjudication or legal proceedings.
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1. Sender and Recipient Details: Full company names, registration numbers, and addresses of both parties
2. Reference Details: Contract number, project reference, and any relevant previous correspondence references
3. Subject Line: Clear indication that this is a Payment Demand Letter under CIPAA 2012
4. Contract Identification: Details of the subcontract agreement including date and scope of works
5. Payment Claim Details: Specific amount claimed, including breakdown of works completed and payment due dates
6. Legal Basis: Reference to relevant contractual clauses and CIPAA 2012 provisions supporting the payment claim
7. Payment Instructions: Bank account details and preferred payment method
8. Deadline: Clear statement of payment deadline (typically 14 days under CIPAA)
9. Consequence Statement: Statement of intended legal action if payment is not received by the deadline
1. Previous Communications: Summary of previous payment requests and responses - include when there has been prior correspondence about the payment
2. Partial Payments: Details of any partial payments received - include when partial payments have been made
3. Dispute History: Summary of any disputed items and their resolution status - include when there are disputed items
4. Interest Claim: Calculation of late payment interest - include when permitted by contract and payment is significantly overdue
5. Without Prejudice Statement: Statement preserving legal rights - include when considering future legal action
1. Schedule A - Payment Calculation: Detailed breakdown of amounts claimed including quantities, rates, and totals
2. Schedule B - Work Completion Evidence: Progress reports, completion certificates, or other evidence of work completed
3. Schedule C - Previous Invoices: Copies of all relevant previous invoices and payment certificates
4. Schedule D - Contract Excerpts: Relevant excerpts from the contract regarding payment terms and conditions
5. Schedule E - Communication Log: Chronological log of relevant communications regarding payment
Relevant legal definitions
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Construction
Civil Engineering
Infrastructure Development
Real Estate Development
Building Services
Commercial Construction
Residential Construction
Industrial Construction
Public Works
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Legal
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Operations
Commercial
Project Management
Contract Administration
Accounts Receivable
Claims Management
Construction Management
Relevant Roles
Project Manager
Contract Administrator
Quantity Surveyor
Construction Manager
Finance Manager
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Legal Counsel
Operations Director
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Account Manager
Project Director
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Finance Director
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