Strategies for Mitigating Untimely Payment Problems in Public Building Projects in Nigeria

Abstract

Money is a critical factor in birthing construction projects, as it helps contractors and subcontractors meet client’s requirement. However, there are anecdotal evidence that the construction industry is characterised with untimely payment and this has proven to be a problem in the delivery of successful projects. The study therefore assessed the strategies for mitigating untimely payment problems in public building projects in Nigeria. Using a quantitative approach structured questionnaire was administered on 289 participants from the Ministry Department and Agencies (MDAs), as well as Contractors and Consultants (Architects and Quantity Surveyors) that have been engaged by Ekiti State MDAs and tertiary institutions in the State. These respondents were selected based on their participation in building projects within the identified area in the last sixteen years. Data gathered were analysed using percentage, mean score and ANOVA test. The study revealed that direct payment, building of safe security payment scheme, and legal and contractual backing are some of the major mitigating strategies for untimely payment problems in public building projects. The study further recommends the enforcement of penalty clauses as stated in condition of contract. Should there be any lateness in honouring certificate; the client would be made to pay interest on payment due that was not paid on time. It is believed that the findings of this study will go a long way in assisting those responsible for the delivery of public building project in achieving timely payment in construction.

Keywords: Building Contracts, Construction Payment, Public Building Projects, Timely Payment