Payment issues and its effects on contractors in Malaysian construction industry

Bibudin, Ahmad Zaim Harith (2017) Payment issues and its effects on contractors in Malaysian construction industry. [Project Paper] (Submitted)

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Abstract

Construction industry give significant effect on gross domestic product in Malaysia and it is rely heavily on payment. Any interruption related to payment can paralyze the development of the economy. Payment issue can be categorized into three which are late, under and non-payment. This issue is not a new situation in the industry even it is a serious matter to be dealt with thus, identifying the root causes of payment issue can provide solution to the problems. The purpose of the study is to identifying and rank the causes of payment issue and the extent of its impact and strategy taken by contractors to deal with it. The target group of respondents in this study is taken from CIDB directory in which only Grade G4 contractors with specialization in building construction. The findings indicate that payment culture in the industry is the most significant cause on the payment issue in which the attitude of the local people like to postpone things. Then, relationship between implications and strategies to mitigate payment issue are recognized to be selected into framework development. Only variables that have correlation coefficient value of 0.2 and above are selected into a framework. According to the framework, the most significant impacts of payment issue is creating a negative chain effect on other parties such as sub-contractors and supplier while, appealed to employer repeatedly and slow down works are the most significant strategies taken by contractors to mitigate payment issue. Proposed framework is constructed based on triangle view of time, cost and quality where causes, impacts and strategy are also related to each other.

Item Type:	Project Paper
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management T Technology > TH Building construction
Faculty:	Faculty of Engineering
Depositing User:	Ms Siti Mariam Giman
Date Deposited:	21 Oct 2025 02:57
Last Modified:	21 Oct 2025 02:59
URI:	http://psaspb.upm.edu.my/id/eprint/2513

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