Table 3: The comparison of mediation in different standards of contract.

PAM 2018 PWD AIAC Rules CIDB 2000 KLRCA Mediation

203A 2010 Rules

Mediation Clause 34.1 Mediation No related AIAC Mediation Clause 47.2 Reference to Mediation Rule 12
under PAM rules Rules (2018)

Perak - Before any dispute Rule 1 Application of - (b) When a "Request for Mediation" is - The mediator's role is
Integrated between the employer and the Rules delivered, the dispute will undergo mediation to impartially help the
Developm contractor, the agreement is - the parties have the based on the CIDB Mediation Rules. However, parties find a friendly
ent required in written between right to decide if this request is made after the 90-day time resolution to the dispute.
Corporati the parties, only can be whether to apply limit mentioned in sub-clause 47.2(a) has
on Sdn proceeded to mediation. mediation rule if passed, the recipient isn't obligated to engage
Bhd v. - The parties must find a there is a dispute in mediation. The mediation process won't
Asahi mediator who agreed by arise. proceed without the written agreement of the
Engineeri both parties within the 21 recipient in such cases.
ng & days from the date of the - (c) When a dispute is successfully resolved
Constructi written agreement. through mediation, the outcome will be
on - the President of documented in a settlement agreement. Both
(Malaysia) Pertubuhan Akitek Malaysia parties are obligated to follow the terms of this
Sdn Bhd can be applied by any party agreement. A copy of the settlement agreement
(2016) to be a mediator, if they do will be provided to the Superintending Officer,
not have a mediator who who will acknowledge it. If relevant, the
agreed by both parties after Superintending Officer will also incorporate
21 days from the date of the the settlement agreement's terms into their
written agreement. contractual responsibilities and authority.
'- The appointed mediator
should follow the current
edition of the PAM
Mediation Rules or any
modification or revision to
such rules in mediator
process.
Clause 34.2 Mediation
shall not prejudice the
parties' rights to
adjudication or arbitration
- The requirement to
mediate a dispute as per
Clause 34.1 doesn't need to
happen before moving to
adjudication or arbitration,
and none of the parties'
rights to pursue adjudication
under Clause 36.0 or
arbitration under Clause
37.0 will be negatively
impacted by the mediation
clause.
- (d) Before initiating arbitration proceedings
as per Clause 47.3, a prerequisite is that the
matters related to the dispute must have first
undergone mediation under Clause 47.2. If the
mediation process doesn't lead to a settlement,
either party can then proceed to arbitration
after the mediation concludes, and the final
arbitration decision will be governed by Clause
47.3.
Rule 8 Roles of Rule 13
Mediator
- The mediator's role - The mediator can
is strictly impartial; oversee the mediation
they won't represent process in a way they
any party, offer deem suitable,
advice, or participate considering the specific
in arbitration or legal dispute, the parties'
proceedings related preferences, and
to the mediated practical factors that
dispute. contribute to a swift and
- The mediator won't satisfactory resolution.
act as an arbitrator
for the parties, and
both parties and the
mediator agree not to
involve the mediator
in any arbitration or
court case as a
witness. This
maintains the
mediator's neutrality
and confidentiality.
 Mediation in Malaysia is a process where parties in a dispute come together with the assistance of a neutral third party who are
the mediator to find a mutually acceptable solution.
 In the construction industry, various contract standards like PAM 2018, AIAC rules, CIDB 2020 and Mediation Rule Act
incorporate mediation clauses to resolve disputes efficiently.
 The clause includes clause 34 in PAM 2018, clause 47.6 in CIDB 2000, AIAC rules, and Mediation Rule Act
 Parties can refer their disputes to mediation, and if successful, the outcome is documented in a settlement agreement.
 If mediation doesn't lead to a resolution, parties can proceed to legal proceedings or arbitration.
 Mediation provides a private and confidential platform for parties to resolve the parties' dispute as it is only attended by
disputants and mediator.
 In the case law of Perak Integrated Development Corporation Sdn Bhd v. Asahi Engineering & Construction (Malaysia)
Sdn Bhd (2016), there is a dispute between developer and contractor about the developer sued the contractor without going the
process of mediation.
 The type for application of mediation rule is decided by parties when there is a dispute between the parties in Rule 1 of AIAC
Meiation Rules (2018).
 Based on the clause 34.2 in PAM 2018, before go to arbitration, the dispute may be settled through mediation in advance.
 Mediation is a more effective way to resolve the dispute as its process is beneficial in the time and cost which only involves
the disputants, developer and contractor, and a mediator.
 In the Rule 12 of Mediation Rule Act, the mediator is an important role in solving the dispute of disputants.
 For Rule 8 in AIAC Rules, the mediator should not represents the party whether as a developer nor contractor in this case law.
 Successful mediation outcomes are documented in a settlement agreement, however, if the dispute still cannot be resolved
through mediation, then only the parties can decide for moving it to arbitration under clause 47.2 in CIDB 2000.