Direct Payment Under Section 30 CIPAA 2012: The 4 Vital Conditions for Subcontractors Unpaid subcontractors in the Malaysian construction industry often struggle to recover funds from non-paying main contractors. Fortunately, Section 30 of the Construction Industry Payment and Adjudication Act (CIPAA) 2012 provides a powerful legal lifeline: seeking direct payment from the principal or employer. The Court of Appeal recently reaffirmed the strict framework governing this remedy. In the case of Tri Pacific Engineering Sdn Bhd v. KL Eco City Sdn Bhd [2026] MLRAU 110 , the court solidly endorsed the definitive legal test established in the landmark decision Cabnet Systems (M) Sdn Bhd v. Dekad Kaliber Sdn Bhd & Anor [2020] . For a subcontractor to bypass the main contractor and successfully claim directly from the employer, four mandatory conditions must be met simultaneously. The 4 Mandatory Conditions for Direct Payment To make a successful Section 30 application, the relationship ...
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