Delay in payment to contactors and other relevant parties have caused serious problem on the successful execution of construction projects in the country. It causes several problems to the contractor and other participants. The aim of this study is to determine the causes of delayed payments in the construction industry. The objective of this study is to identify the causes of delayed payment. In order to obtain valid data for the study, questionnaires were designed and distributed to a randomly selected sample of one hundred individuals among contractors, subcontractors, consultant and clients in the Nigerian construction industry. In total, eighty five completed questionnaires were returned and then analysed statistically. The total mean score was used to determine the ranking of the results of the study. Client’s disagreeing on the valuation of work done, slow processing of variation orders and poor quality of works were the major causes of delayed payment identified in the study. It was recommended that the stakeholders should work as a team in the execution of project to avoid bottlenecks usually encountered in agreeing contractors‟ payment. In conclusion, if the necessary action can be enforced, the problem of delayed payment can be reduced drastically.
H. A. Nasser, "The effect of payment delay on construction projects in Gaza strip," M.S. thesis, Dept. Const. Mgt., Islamic Univ., Gaza, Palestine, 2013.
O. Akinsiku, and O. Ajayi, “Effects of delayed payment of contractors on construction project delivery in Nigeria,” presented at the Construction, Building and Real Estate, Research Conference of the Royal Institution of Chartered Surveyors held in Toronto, Canada, September 20-22, 2016.
K. Reeves, (March 2003). Pay up. JUBM Construction News and Views [Online]. 1(4), pp. 4 – 6.
W. E. Alaghbari, M. R. A. Kadir, A. Salim and K. Ernawati, “The significant factors causing delay of building construction projects in Malaysia,” Engineering, Construction and Architectural Management, vol. 14 no. 2, pp. 192-206, August 2007.
K. S. Ansah, “Causes and effect of delayed payments by clients on construction projects in Ghana,” Construction Project Management and Innovation, vol. 1 no. 1, pp. 27-45, November 2011.
F. Harris, and R. McCaffer, Modern Construction Management, 5th edn. UK: Blackwell Science, 2003, pp. 30-45.
D. Miles, Financial planning for the small building contractor, CA: Intermediate Technology Publication, 1979, pp. 55-75.
B. I. N. Ayudhya, Factors causing delay in payment of Residential building projects in Thailand,” presented at the FIG Working Week, Knowing to manage the territory, protect the environment, evaluate the cultural heritage held in Rome, Italy, May 6-10, 2012.
H. Abdul-Rahman, R. Takim, and S. Min, “Financial-related causes contributing to project delays,” Retail & Leisure property, vol.8, no 3, pp. 225-238, May 2009.
A. Yao, "Effects of delayed payment on projects and stakeholders: A case study of Keta Municipal Assembly." M.S. thesis, Dept. Const. Mgt., Kwame Nkrumah Univ., Ghana, West Africa, 2014.
This work is licensed under a Creative Commons Attribution 4.0 International License.
The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.
Submission of the manuscript represents that the manuscript has not been published previously and is not considered for publication elsewhere.