Kho Mei Ye and Hamzah Abdul Rahman
Risk of Late Payment in the Malaysian Construction Industry
503 - 511
2010
4
5
International Journal of Mechanical and Industrial Engineering
https://publications.waset.org/pdf/1129
https://publications.waset.org/vol/41
World Academy of Science, Engineering and Technology
The purpose of this study is to identify the underlying
causes of late payment from the contractors perspective in the
Malaysian construction industry and to recommend effective solutions
to mitigate late payment problems. The target groups of respondents in
this study were Grades G3, G5, G6 and G7 contractors with
specialization in building works and civil engineering works registered
with the Construction Industry Development Board (CIDB) in
Malaysia. Results from this study were analyzed with Statistical
Package for the Social Science (SPSS 15.0). From this study, it was
found that respondents have highest ranked five significant variables
out of a total of fortyone variables which can caused late payment
problems a) cash flow problems due to deficiencies in clients
management capacity (mean 3.96); b) clients ineffective utilization
of funds (mean 3.88); c) scarcity of capital to finance the project
(mean 3.81); d) clients failure to generate income from bank when
sales of houses do not hit the targeted amount (mean3.72); and e)
poor cash flow because of lack of proper process implementation,
delay in releasing of the retention monies to contractor and delay in the
evaluation and certification of interim and final payment (mean
3.66).
Open Science Index 41, 2010