Risk of late payment in the Malaysian construction industry
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 a...
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| Format: | Article |
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World Academy of Science, Engineering and Technology
2010
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| _version_ | 1825721976420827136 |
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| author | Kho, Mei Ye Abdul-Rahman, Hamzah |
| author_facet | Kho, Mei Ye Abdul-Rahman, Hamzah |
| author_sort | Kho, Mei Ye |
| collection | UM |
| description | 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 forty-one variables which can caused late payment problems: a) cash flow problems due to deficiencies in client's management capacity (mean = 3.96); b) client's 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 (mean=3.72); 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). |
| first_indexed | 2024-03-06T05:58:34Z |
| format | Article |
| id | um.eprints-22979 |
| institution | Universiti Malaya |
| last_indexed | 2024-03-06T05:58:34Z |
| publishDate | 2010 |
| publisher | World Academy of Science, Engineering and Technology |
| record_format | dspace |
| spelling | um.eprints-229792019-11-13T07:47:06Z http://eprints.um.edu.my/22979/ Risk of late payment in the Malaysian construction industry Kho, Mei Ye Abdul-Rahman, Hamzah TH Building construction 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 forty-one variables which can caused late payment problems: a) cash flow problems due to deficiencies in client's management capacity (mean = 3.96); b) client's 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 (mean=3.72); 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). World Academy of Science, Engineering and Technology 2010 Article PeerReviewed Kho, Mei Ye and Abdul-Rahman, Hamzah (2010) Risk of late payment in the Malaysian construction industry. World Academy of Science, Engineering and Technology, 65. pp. 538-546. ISSN 2010-376X, https://publications.waset.org/1129/pdf |
| spellingShingle | TH Building construction Kho, Mei Ye Abdul-Rahman, Hamzah Risk of late payment in the Malaysian construction industry |
| title | Risk of late payment in the Malaysian construction industry |
| title_full | Risk of late payment in the Malaysian construction industry |
| title_fullStr | Risk of late payment in the Malaysian construction industry |
| title_full_unstemmed | Risk of late payment in the Malaysian construction industry |
| title_short | Risk of late payment in the Malaysian construction industry |
| title_sort | risk of late payment in the malaysian construction industry |
| topic | TH Building construction |
| work_keys_str_mv | AT khomeiye riskoflatepaymentinthemalaysianconstructionindustry AT abdulrahmanhamzah riskoflatepaymentinthemalaysianconstructionindustry |