Payment Behaviour and Its Implications towards Project Delivery: Contractor’s Perspective

Yap, Wai Yen (2021) Payment Behaviour and Its Implications towards Project Delivery: Contractor’s Perspective. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Bad payment behaviour has seriously plagued the construction industry and affected contractor’s cash flow, which giving a negative impact on the contractual payment chain. This research aims to achieve in the reduction of payment issues faced by local contractors. There are 3 objectives established for this research. Firstly, the current payment behaviour being practiced in local construction industry is being investigated. Secondly, the factors and its consequences caused by the payment behaviour practiced on construction project delivery are identified through in depth studying. Lastly, the approaches that can be recognised to refine the issue of payment practices are also pointed out. Quantitative analysis is conducted where questionnaires are distributed among contractor firms in Malaysian construction industry. Data from questionnaires are then analysed in descriptive statistics. Ranking of the factors, consequences and approaches are determined based on the mean value adopted from SPSS software. Meanwhile, results among experts in local construction industry reveal that poor financial management of employer is the highest ranked factor which causing payment issues; delay in construction project is the highest ranked effect of payment issues; and lastly payment bond is the highest ranked approach to refine payment issues. In summary, findings of the results may assist contractor in addressing problems associated to payment effectively.