Question

A Main Contractor assigned the substructure works of a large housing project in Malaysia to a Domestic Sub-Contractor with a clearly written sub-contract agreement between the two parties. The sub-contract agreement was properly signed by both parties with detail conditions of progress payment stated on regular basis.The agreement was stamped after orderly preparation. Progress payments were timely made for the first three months. However after the third month, no progress payment was forthcoming for the subsequent three months although the Sub-Contractor submitted all the progress claims.The works were all properly executed.There was a heated dispute between the Main Contraction and the Sub-Contractor over this non payment by the Main Contractor to the Sub-Contractor. Identify an appropriate approach to resolve this dispute and discuss this process of resolution of dispute. Explain SIX (6) reasons why this approach is most appropriate

Answer 1

1)The appropriate approach is to sue for not getting paid by the Main contractor.

Following are the reasons why this approach is most appropriate

a)The contract has been signed by both the parties with clear conditions of payment.So if the Main contractor breaches the agreement,the subcontractor has all the rights to sue.

b)All other means of approach are already exhausted ,as the dispute between the two parties.

c)There is no quality issue in the work and the works are properly executed

d)The sub contractor has waited for three months which is more than sufficient.

e)The sub contractor has not taken any advance

f)The sub contractor has not stopped the work