Construction industry has the multiplier effect cross the section in the country such as manufacturing, services and financial sector. the adoption of Industrialised Building System (IBS) has been introduced since 2008 with the main objective to reduce the dependency of foreign worker. The advantages of IBS in the construction industry are high quality, shorter construction period, less wastage at construction site and reduce the overall cost. However, the current procurement process for IBS project payment method is not suitable with IBS project progress which differe nt from the traditional project payment method. Thus, this study will propose the new payment method for IBS project using the Analytic Hierarchy Process (AHP) through the ranking of the development of new payment method's criteria. There are four key criteria with sixteen sub-criteria in the development of new payment method which are Initial Cost, Material, Drawing and Design Matters and Contract Document.This study is expected to help the IBS player to sustain in the cosntruction sector especially for Small and Medium Enterprise (SME).