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

Main Article Content

Samuel Olusola Olatunji


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.

Article Details



Abdul Rahman, H., Alashwal, A.M., Ayub, M., and Abdullah, A. (2013). Abandoned Housing Projects in Malaysia: Pressing issues during the Rehabilitation Process. International Journal of Architectural Research. 7(1), 65-73.

AbdulRazaq, M., Ibrahim, Y.M and Ibrahim, A.D. (2012). Investigating the Practice of Cash Flow Forecasting by Contractors in Nigeria In: Laryea, S., Agyepong, S.A., Leiringer, R. and Hughes, W.(Eds) Procs 4th West Africa Built Environment Research (WABER) Conference, Abuja, Nigeria, 24-26 July 2012, 47-54.

Aibinu, A. A., and Jagboro, G. O. (2002). The effects of construction delays on project delivery in Nigerian construction industry. International Journal of Project Management, 20(8), 593-599.

Ajanlekoko B. F. (1987). Contract Procurement Method in Delivery of Project in the Construction Industry, Journal of Nigeria Construction Economist. 14, 29-39.

Akindoyeni, A. (2008). Technological and Cost Consequences of Delay in Construction and Abandoned Project. Journal of Society of Construction Industry Arbitrators, 8(5), 30-39.

Akintoye, A. (2000). Analysis of factors influencing project cost estimating practice. Construction Management and Economics, 18, 77-89.

Al-Momani, A. H. (2000). Construction Delay: a Quantitative Analysis. International Journal of Project Management, 18(1), 51-59.

Ameer-Ali, N. A. N. (2005). Payment in the Construction Industry: Towards Zero-Default. In Proc. QS National Convention,10-11 August 2005, Hilton Kuala Lumpur.

Ayodele, E. O. and Alabi, O. M. (2011). Abandonment of Construction Projects in Nigeria: Causes and Effects. Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 2 (2), 142-145

Cheng, T., Soo, G., Kumaraswamy, M., and Jin, W. (2009). Security of Payment for Hong Kong Construction Industry–Workable Alternatives and Suggestions. Building Journal Hong Kong China, 60-77.

Enshassi, A., Mohamed, S., and Abushaban, S. (2009). Factors affecting the performance of construction projects in the Gaza strip. Gaza Palestine. Journal of civil engineering and management, 15 (3):269-280.

Ewa, U. E. (2013). Root Causes of Project Abandonment in Tertiary Institutions in Nigeria. International Business Research. 6(11), 149 – 159.

Ghasemi, A. and Zahediasl, S (2012). Normality Test for Statistical Analysis: A guide for non-statisticians. International Journal of EndocrinolMetab, 10(2),486-489

Gupta, B.L. and Gupta, A. (2008). Construction Management and Machinery, Delhi, Standard Piblishers Distributors, 478 – 479.

Hair, J. F., Anderson, R. E., Tathan, R. L. and Black, W. C. (1998). Multivariate data analysis. Upper Saddle River, New Jersey: Prentice Hall

Hasmori, M. F., Ismail, I., and Said, I. (2012). Issues of Late and Non-Payment among Contractors in Malaysia. In 3rd International Conference on Business and Economic Research, Bandung, Indonesia.

Hornby, A. S. (2010). Oxford Advanced Learner’s Dictionary. New York: Oxford University Press.

Kaka, P.A. and Lewis J. (2003). Development of a Company – Level Dynamic Cash Flow Foresting Mode. Construction Management and Economics 21 693 – 705.

Kho Mei Ye, Hamzah Abdul Rahman (2010). Risk of Late Payment in the Malaysian Construction Industry.

Memon, A. H., Rahman, I. A., Abdullah, M. R. and Azis, A. A. (2012) The Cause Factors Of Large Project’s Cost Overrun: A Survey In The Southern Part Of Peninsular; International Journal Of Real Estate Studies, 7(2), 1 – 15

Moser, C. A., and Kalton, G. (1999). Survey Methods in Social Investigation, 2nd Edition. Gower Publishing Company Ltd, Aldershot

Odeh, A. M. and Battaineh, H. T. (2002). Causes of Construction delays on completion of Housing Project in Nigeria. Journal of Financial Management on Property Construction, 2 (3), 31 – 34.

Odeyinka, H., Kaka, A., and Morledge, R. (2003). An Evaluation of Construction Cash Flow Management Approaches in Contracting Organisations. In ARCOM 19th Annual Conference (Vol. 1, 33-41). Association of Researchers in Construction Management.

Okwudili, M. E. (2014). The Causes of Abandoned Projects: Niger Delta Development Commission (NDDC) Hostel Project in Nigerian Universities. Journal of African Studies and Development. 6 (5), 87-94.

Omoniyi, M. I. (1996). A Critical Analysis Of Abandoned Projects in Nigeria.Journal of Building Science and Management, 11 (1), 4 – 10.

Pallant, J. (2010) SPSS Survival Manual: A Step by Step Guide to Data Analysis using SPSS for Windows, 3rd Edition, Open University Press. McGraw Hill, New York, NY.

Ramachandra, T., and Rotimi, J. O. B. (2015). Causes of Payment Problems in the New Zealand Construction Industry. Construction Economics and Building, 15(1), 43-55.

Saleh Al Hadi Tiemi, Abdelnazer Omran, Abdul Harmid Kadir Pakir (2009). Causes of delay in construction industry in Libya. The International Conference on Economics and Administration. Faculty of Administration and Business, University of Bucharent, Romania ICEA – FAA Budharet 14th – 15th November, 2009.

Sharma, S. (1996). Applied Multivariate Techniques Subhash Sharma. John Wiley and Sons, Inc., New York.

Sherif, E. H., and Kaka, A. (2004). A Multi Criteria Mode for the Selection of the Payments Systems in Construction Projects. In F. Khosrowshahi (Ed.), 20th Annual ARCOM Conference,1-3.

Spector, P. (1992). Summated rating scale construction: an introduction, Newbaury Park, California: Sage Publications.

Stern, L. (2010). A visual approach to SPSS for Windows: a guide to SPSS 17.0, 2nd ed., Boston: Allyn and Bacon

Supardi, A, and Adnan, H.(2011). Security of Payment in Malaysian Construction Industry: Eradication of Sub-contract’s Contingent Payment. In International Conference on Energy, Environment, Entrepreneurship, Innovation, Lanzarote, Canary Islands, Spain, May (pp. 116-121)

Tabachnick, B.G. and Fidell, L.S. (2007). Using multivariate statistics 5th edition, Boston: Pearson Education.

Teku, A. Y. (2014). Effects of Delayed Payment on Projects and Stakeholders: A Case Study of Keta Municipal Assembly (Doctoral dissertation).

Wai, S., Yousf, A., Ismail, S. and Ng, C. (2013). Exploring Success Factors of Social Infrastructure Projects in Malaysia. International Journal of Engineering Business Management, vol. 5, no. 2, pp. 1-9, 2013.

Wong, C., Kaka, A.P. and Fortune, C. (2006). A multi criteria Decision Making Framework for Alternative Payment Systems using AHP Analysis. Journal of Construction Engineering Management. ASCES 130 (5) 691 – 698.

Wong, J. T., and Hui, E. C. (2006). Construction project risks: further considerations for constructors' pricing in Hong Kong. Construction Management and Economics, 24(4), 425-438

Ye, K. M., and Rahman, A. H. (2010). Risk of late payment in the Malaysian construction industry. International Scholarly and Scientific Research and Innovation, 4(5), 81-9