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Legal Construction Payment Dispute & Debt Recovery

Malaysian Bar registered Law Firm • Established 2016 • 2,000+ debt matters handled since 2016.

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Our Services

The Rule & Co team has spent the past eight years helping industry players across Malaysia efficiently handle construction debt disputes, recovery, and enforcement through a variety of methods including:

  • contract review and drafting

  • pre-court negotiations & recovery

  • CIPAA adjudication

  • payment claim drafting

  • adjudication response defence

  • negotiation & settlement

  • court enforcement

  • winding-up proceedings

Who We Serve

  • main contractors

  • subcontractors

  • suppliers

  • developers

Pre-Court Debt Recovery

Our preferred strategy for construction payment disputes is our own pre-court debt recovery process, refined over the years to quickly and reliably assess:

  1.  A debtor's financial stability

  2. Legal grounds of a debtor disputing the debt

  3. The potential for a swift recovery 

This approach promotes surgical, commercially driven decision-making, saving our clients time and prioritising swift, practical resolutions. Importantly, all actions are fully compliant with Malaysian law, ensuring recovery efforts remain legally sound while also protecting your reputation and business relationships.

Our Past Cases

Debt Collector Backfiring

How we recovered RM 150,000 for a Client who got into trouble after engaging gray-area debt collection services.

Debt Collector Backfiring

How we recovered RM 150,000 for a Client who got into trouble after engaging gray-area debt collection services.

Debt Collector Backfiring

How we recovered RM 150,000 for a Client who got into trouble after engaging gray-area debt collection services.

Debt Collector Backfiring

How we recovered RM 150,000 for a Client who got into trouble after engaging gray-area debt collection services.

Client Testimonials

FAQs

1. What is the overall best approach to construction debt recovery in Malaysia? An effective strategy combines strong contracts, proper documentation, early communication, use of CIPAA adjudication, and timely legal intervention when necessary.

2. How long does Rule & Co's debt recovery process take? For our pre-court recovery service, we usually require around 8 weeks to obtain a response from the debtor. If they remain completely unresponsive, we return the file to you with no further charges.   For court proceedings, timelines vary depending on the complexity of your matter. We’ll give you a realistic assessment before you decide whether to proceed.

3. How are your fees structured? Our fee structures are compliant with Bar Council rules. We work on cost-effective fee models designed to keep costs proportionate to your results. For an accurate quotation, reach out to us on WhatsApp for a free case assessment. We’ll explain clearly what fees apply and what options you have before you commit.

4. Is there a minimum debt amount? We are able to take on cases involving debts as low as RM 5,000.

5. What documents do I need to prepare? Ideally, we would need contracts, work orders, invoices, correspondence, progress reports, inspection records, delivery notes, and evidence of completed work. Don't worry if your documents are incomplete, as we’ve resolved cases even with limited paperwork. Every claim is worth assessing.

6. Are your recovery methods legal? Absolutely. We are a law firm regulated by the Malaysian Bar Council. We are not a “debt collector agency.” All our methods are legal, professional, and enforceable in court. Our focus is always on protecting your rights — while safeguarding your business reputation.

7. Will I be updated on my case progress? We will provide you with all important updates via direct WhatsApp communication with the lawyer in charge of your case. We pride ourselves on our responsiveness and diligent case follow-ups.

8. Can mediation attempts be used as delay tactics by clients? Yes, clients may prolong meetings without resolution, causing further financial hardship while avoiding settlement, and later escalate the dispute through legal counterclaims. For this reason, we conduct thorough due diligence during our initial case assessment to help ensure that recovery efforts will produce results.

9. Why should contractors attempt negotiation before legal escalation? Many payment issues arise from misunderstandings or temporary cash flow constraints, and negotiation can lead to faster resolution while preserving business relationships.

10. How does mediation help resolve construction payment disputes? Yes, we can. Mediation involves a neutral third party assisting both sides to reach a mutually acceptable solution in a non-confrontational manner.

11. When is arbitration preferable in construction debt disputes? Arbitration is useful for complex contractual or technical disputes, offering confidentiality and a legally binding decision.

12. What legal options are available if alternative dispute resolution fails? Contractors may file civil suits in the appropriate Malaysian courts, issue statutory demands for winding-up proceedings, or pursue director liability where misconduct exists.

13. What are my chances of a successful recovery? We typically consider 3 factors when assessing the success rate: (i) Whether the debtor is still solvent; or already in winding up/bankrupt. (ii) Whether the debtor has a valid defence / counterclaim against you. (iii) Whether the debtor has sufficient assets/cash to repay the debt. If all the above factors are positive, the success rate of recovery is usually good.

FREE Case Assessment

We'll assess your case, free of charge.

Whatsapp us at +6 010 202 8095
Email us at rudi@rulecolaw.com
Or fill in the adjacent form and we'll get in touch.

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Whatsapp: +6 010 202 8095

LG1-2, Seri Gembira Avenue, No. 6, Jalan Senang Ria,

Kuchai Lama, 58200 Kuala Lumpur, Malaysia.

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(c) 2020 Rule & Co. Advocates & Solicitors

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