Factors Contributing to Delay of Interim Payment in Civil Engineering Projects
Delay of interim payment remains a chronic problem in the Malaysian construction industry and has relatively increased in number in recent years. Other than causing conflict among the contracting parties, the impacts it brings could shatter the entire delivery chain. Thus, the unfavorable contra...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Indonesia
2023-06-01
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| Series: | International Journal of Technology |
| Subjects: | |
| Online Access: | https://ijtech.eng.ui.ac.id/article/view/3370 |
| Summary: | Delay of interim payment remains a chronic problem in the Malaysian
construction industry and has relatively increased in number in recent years.
Other than causing conflict among the contracting parties, the impacts it
brings could shatter the entire delivery chain. Thus, the unfavorable
contractual behavior of the client is a matter of great concern that should be
addressed by all parties involved to ensure satisfactory project performance.
However, research has revealed that the factor causing it is not solely because
of the client's faults but also caused by other factors. Therefore, the purpose
of this research is to determine the factors that lead to the occurrence of
delay of interim payment in government-initiated civil engineering projects in
Malaysia. The perceptions of civil engineer consultants and contractors were
compared in relation to a list of factors derived from the literature review.
The data were collected through an industry-wide questionnaire survey from 288
respondents. This research developed a list of 22 items that might influence
the delay of interim payment based on four domains, namely project
characteristics, quality of Standard Form of Contract (SFoC), external factors
and participants and local attitude. The results found that the occurrence of
delay of interim payment in civil engineering project is very high frequency.
Correlation analysis performed revealed that the three major factors are
positively correlated, namely project scope and design changes, ground
uncertainty under the project characteristics domain, and bureaucracy in
government agencies under the participants and local attitude domain. These
results can help the project participants to better understand the relationship
between the groups of factors and the delay of interim payment and encourage
them to find solutions or implement mitigating actions to improve the outcomes
of civil engineering project. |
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| ISSN: | 2086-9614 2087-2100 |