Mitigating Delay in Construction Contract Payment: A South African Case Study

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.