An Assessment of the Barriers of Timely Payment in Public Building Projects in Ekiti State, Nigeria

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Samuel Olusola Olatunji

Abstract

Contractors are entitled to timely payment for work executed in line with the mode of payment stated in the contract document. This contributes to continuous involvement of contractor in construction businesses and proper cash flow; in order words it prevents contractors’ insolvency. There are anecdotal evidences about the fact that untimely payment of construction works is like a cankerworm that have eaten deep into the fabric of the construction industry in developed and developing countries. This study therefore assessed the barriers of timely payment in public building projects in Nigeria using a survey of selected construction participants that have been involved in the delivery of public projects within the last sixteen years. A total of 23 barriers were assessed and factor analysis was used to analyse the data gathered. The study concludes that the major barriers of timely payment of public building projects within the study area can be categorised under the project management barriers, client barriers, consultant barriers, economy barriers, project environment barriers and contractor barriers. The study further recommends that clients’ should stick to the agreed pace of payment for valued work done by contractors; and also make clients to pay interest for lateness in honouring payment certificate. Effective planning must be carried out from the onset of the project, while having the right mix of construction team is also necessary. It is believed that the findings of this study will go a long way in helping those responsible for the delivery of public building projects to deliver successful project through timely payment to contractors.

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