This paper looks at the impacts of delayed payment on project delivery.

Delay in paying construction contractors has impacted negatively on the effectiveness of the contractor and as such affect project delivery schedule. Failure to pay contractors for work executed might lead to the contracting firm being insolvent.

This research is a form of quantitative research and it a cross -sectional research survey which is a combination of descriptive and explanatory research design. The population of the study comprises of clients, consultant and contractors. A total of 65 questionnaires were distributed and 47 were returned and used for the analysis. It gives a response rate of 72%. Random sampling technique method was used, thus the respondents has equal chances of being selected. Statistical package for social sciences (SPSS 20th version) was used to analyse the data via descriptive and inferential statistic.

The finding shows that the causes of delayed payment were unrealistic cash flow, error in claims, poor financial problems and disagreement on valuation of work. The impact of delayed payment is delay in project progress which affects the schedule of work and leads to cost overrun and extension of time. In conclusion clients should seek co- investors for support on financial commitment. It was recommended that the stakeholders should work as a team in the execution of project to avoid bottlenecks usually encountered in agreeing contractors’ payment.

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