Causes of payment problems in the New Zealand construction industry

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dc.citation.issue1
dc.citation.volume15
dc.contributor.authorRamachandra T
dc.contributor.authorRotimi JOB
dc.date.available2015
dc.date.issued2015
dc.description.abstractPayment delays and losses persist in the construction industry and continue to be a key concern to industry practitioners. Therefore an exploration of the key causes of payment delays and losses is undertaken in this study with the ultimate objective of seeking mitigating solutions. The study adopted a survey approach using an online questionnaire, administered to practitioners from the New Zealand construction industry, comprising consultants, head contractors and subcontractors. The data obtained was analysed using inferential statistical techniques, including comparing means and factor analysis. Factor analysis enabled clustering of the inter-related causes of payment delays and losses in order to find reduced number of causes. Accordingly, the study found that payment problems mainly relate to contractual issues, financial strength of industry players, disputes, short-comings of payment processes and ‘domino effects’. Among them, the financial strength of critical industry players was considered central to payment problems. The study concludes that any solution to these problems must address these primary causes, as a rational starting point. Thus procuring a feasible form of financial security at the outset of a project, and the pre-qualification of the financial status of critical project participants, were found to be significant in the mitigation of construction payment risks
dc.description.confidentialFALSE
dc.format.extent43 - 55
dc.identifierhttp://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/4214
dc.identifier.citationConstruction Economics and Building, 2015, 15 (1), pp. 43 - 55
dc.identifier.doi10.5130/ajceb.v15i1.4214
dc.identifier.eissn2204-9029
dc.identifier.elements-id398641
dc.identifier.harvestedMassey_Dark
dc.identifier.issn1835-6354
dc.identifier.urihttps://hdl.handle.net/10179/13058
dc.publisherUniversity of Technology Sydney (UTS) ePress
dc.publisher.urihttp://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/4214
dc.relation.isPartOfConstruction Economics and Building
dc.relation.urihttp://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/4214/4542
dc.subject.anzsrc0905 Civil Engineering
dc.subject.anzsrc1202 Building
dc.subject.anzsrc1402 Applied Economics
dc.titleCauses of payment problems in the New Zealand construction industry
dc.typeJournal article
pubs.notesNot known
pubs.organisational-group/Massey University
pubs.organisational-group/Massey University/College of Sciences
pubs.organisational-group/Massey University/College of Sciences/School of Built Environment
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