Streamlining the management of payment delays: the case of Sri Lankan Government building construction projects

Abstract

Purpose

Delayed payments have been long standing, pressing issue in construction projects, especially in Government-funded construction projects. The root causes and the consequences of delayed payments must be identified before implementing strategies to mitigate the consequences of such delayed payments. However, these causes and consequences and the parties responsible for managing the delayed payments have not been identified so far. Therefore, the purpose of this study is to investigate the management of payment delays in Government-funded construction projects.

Design/methodology/approach

The study used a mixed approach comprising four case studies and a questionnaire survey. The empirical data collected from the case studies and the questionnaire survey were analysed using manual content analysis and mean rating, respectively.

Findings

The study identified the most significant causes and the most significant consequences of delayed payments that occur in Government-funded construction projects. It also revealed the strategies that clients, consultants, contractors and other parties can adopt to mitigate the adverse consequences of such delayed payments.

Originality/value

This study identified the most significant causes of delayed payments in Government-funded construction projects, the most significant consequences of such delayed payments and the most suitable strategies the clients, consultants and contractors can adopt to mitigate the consequences of such delayed payments. Thus, this study supports streamlining the management of payment delays in Government construction projects and identifies the roles that different parties must play in managing payment delays in Government building projects, which is an under-researched area.

Citation

Perera, B.A.K.S. and Dewagoda, K.G. (2021), "Streamlining the management of payment delays: the case of Sri Lankan Government building construction projects", Journal of Financial Management of Property and Construction, Vol. 26 No. 2, pp. 236-256. https://doi.org/10.1108/JFMPC-05-2020-0041