TY - GEN
T1 - Mitigating Delay in Construction Contract Payment
T2 - 13th International Conference on Engineering, Project, and Production Management, EPPM 2023
AU - Adekunle, Peter
AU - Aigbavboa, Clinton
AU - Ikuabe, Matthew
AU - Otasowie, Kenneth
AU - Tanga, Ornella
N1 - Publisher Copyright:
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2024.
PY - 2024
Y1 - 2024
N2 - Construction project delays are a global phenomenon that also affects South Africa. In spite of increasing government support and stimulus packages, the building sector in South Africa continues to experience delays. Efficient and timely payment is a critical practice for a building project’s successful completion. Evaluating the factors that might reduce payment delays for building contracts in South Africa was the aim of this study. A well-structured questionnaire survey was used to quantify the opinions of building specialists, such as quantity surveyors, civil engineers, construction managers, construction project managers, manufacturing, mechanical, and electrical engineers. The data were analyzed and ranked using mean item score (MIS), standard deviation (SD), and exploratory factor analysis (EFA) to determine the factors that reduce contract payment delays in the construction industry. The findings indicated that important factors that lessen payment delays for construction contracts include the prompt approval of compensation orders, the requirement that payment certificates be signed within a specific amount of time, the deadlines for contractors to submit claims, and the payment of specified interest. The study’s findings assist the creation of comprehensive and feasible solutions that can enhance the efficacy, transparency, and financial feasibility of construction contracts in South Africa by identifying the mitigating factors to the delay in contract payment. The study makes recommendations that the findings be used to guide the creation of laws, legal agreements, and business procedures that can successfully reduce payment delays for construction contracts.
AB - Construction project delays are a global phenomenon that also affects South Africa. In spite of increasing government support and stimulus packages, the building sector in South Africa continues to experience delays. Efficient and timely payment is a critical practice for a building project’s successful completion. Evaluating the factors that might reduce payment delays for building contracts in South Africa was the aim of this study. A well-structured questionnaire survey was used to quantify the opinions of building specialists, such as quantity surveyors, civil engineers, construction managers, construction project managers, manufacturing, mechanical, and electrical engineers. The data were analyzed and ranked using mean item score (MIS), standard deviation (SD), and exploratory factor analysis (EFA) to determine the factors that reduce contract payment delays in the construction industry. The findings indicated that important factors that lessen payment delays for construction contracts include the prompt approval of compensation orders, the requirement that payment certificates be signed within a specific amount of time, the deadlines for contractors to submit claims, and the payment of specified interest. The study’s findings assist the creation of comprehensive and feasible solutions that can enhance the efficacy, transparency, and financial feasibility of construction contracts in South Africa by identifying the mitigating factors to the delay in contract payment. The study makes recommendations that the findings be used to guide the creation of laws, legal agreements, and business procedures that can successfully reduce payment delays for construction contracts.
KW - Construction projects
KW - Contract payment
KW - Delay
KW - Mitigate
KW - Transparency
UR - http://www.scopus.com/inward/record.url?scp=85200384820&partnerID=8YFLogxK
U2 - 10.1007/978-3-031-56544-1_25
DO - 10.1007/978-3-031-56544-1_25
M3 - Conference contribution
AN - SCOPUS:85200384820
SN - 9783031565434
T3 - Lecture Notes in Civil Engineering
SP - 383
EP - 396
BT - Advances in Engineering Management, Innovation, and Sustainability - Proceedings of the 13th International Conference on Engineering, Project, and Production Management, 2023
A2 - Rotimi, James Olabode Bamidele
A2 - Shahzad, Wajiha Mohsin
A2 - Sutrisna, Monty
A2 - Kahandawa, Ravindu
PB - Springer Science and Business Media Deutschland GmbH
Y2 - 29 November 2023 through 1 December 2023
ER -