- Title
- The effects of late payments by government on building contractors
- Creator
- Piliso, Zhané Mary-Ann
- Subject
- Contractors
- Subject
- Building -- South Africa
- Subject
- Construction industry -- Finance -- South Africa
- Subject
- Construction industry -- Employees -- Finance -- South Africa
- Date Issued
- 2024-04
- Date
- 2024-04
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/64761
- Identifier
- vital:73888
- Description
- The built environment in South Africa encounters the challenge of late payment. The issue of late payment has posed a major challenge to the service delivery efforts of government agencies. The delay in remunerating contractors adversely impacts their cash flow and impedes the expansion of their businesses. The construction industry is capital-demanding, and the timely payment of contractors by clients serves to mitigate cash flow challenges experienced by contractors. The main objective of the study was to gain a deeper understanding of the effects of governments late payments to building contractors in the Eastern Cape. The study therefore examined the experiences of building contractors in the Eastern Cape. The secondary objectives were to identify reasons for late payment and how it affects the cash flow of the contractor; to examine the implications of late payment and the effect it has on business growth; and to determine the reasons behind loss of productivity on site caused by late payment. The study was conducted within a quantitative research paradigm. The epistemological stance of the researcher was objectivist. The population for this study consists of building contractors based in the Eastern Cape Province registered with the Masters Builders Association (EC). A probability sample was used to identify the participants in this research. The data was collected using a survey as the primary research strategy. The survey findings suggest that many issues, including inadequate client finance, prolonged processing time for payment documentation, and non-standard payment methods, all lead to delayed payments to the contractor. The findings of the empirical study showed that, despite the lack of particular laws or regulations governing the construction industry’s payment systems, the sector nonetheless uses a number of common guidelines to guide payment practices. The pay-if-paid approach is associated with several limitations, since the contractor cannot always receive full payments as a result of incomplete or defective projects.
- Description
- Thesis (MSc) -- Faculty of Engineering, the Built Environment and Technology, School of Built Environment and Civil Engineering, 2024
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (x, 114 pages)
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Engineering, the Built Environment, and Technology
- Language
- English
- Rights
- Nelson Mandela University
- Rights
- All Rights Reserved
- Rights
- Open Access
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Piliso, ZM.pdf | 6 MB | Adobe Acrobat PDF | View Details Download |