A Study on Late Payment Issues between Employer and Main Contractor

Chan, Adrian Tse Meng (2018) A Study on Late Payment Issues between Employer and Main Contractor. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

The research aims to achieve in the reduction of late payment issues in the construction industry. Three (3) objectives were established for this research. Late payment issues were pointed out through several, indicating the seriousness of late payment issues in the construction industry in the twentieth century. The identification on several payment methods in the construction industry is recognised through in depth studying. The payment methods are then linked to how frequent it is to be adopted in the construction industry. Late payment is also explained specifically, stating the seriousness of late payment issues. The current possible remedies were listed out in order to give a clearer picture on how late payment issues are resolved. However, the factors causing late payment issues in the construction industry is also studied in terms of ranking, stating the severity of each factors. The alternative remedies used to secure debts for Contractors were investigated, stating the most preferable remedies from previous studies. Quantitative analysis is conducted where questionnaires were distributed. The results were tabulated, analysed and discussed in depth. A relationship between value of projects as well as experience in late payment is structured. Not only that, the relationship between familiarity and adoption of payment methods is illustrated, stating the higher the familiarity of the particular payment method, the higher the adoption in the construction industry. The results analysed further explained that the Paymaster’s Poor Financial Management achieved as the most severe factor causing late payment issues in the construction industry through the analysing of Relative Importance Index (RII) as well as Importance Index Technique. The most preferable alternative remedy in securing debt for Contractors is deduced as Payment Bond through the RII. The results further contributed to the industry, by achieving several new findings. Recommendations were also provided based on the limitations found throughout the conduct of this study. The aim eventually is achieved through the three (3) objectives set.