The public sector is the biggest consumer of construction works in South Africa. Public sector is known for late payments to its service providers. This led to the study’s problem statement that stipulates that, the construction industry; particularly emerging contractors generally experience late payments from clients and employers. This is due to the fact that emerging contractors are vulnerable to failing as these contractors have limited financial resources and experience. The primary objective of the study was to develop a better understanding of the implications of late payments by the government on emerging construction contractors. The study therefore investigated the experiences of emerging construction contractors in the Eastern Cape. The secondary objectives of the study were: to identify the reasons for late payments by the public sector; determine the payment norms applicable to, and expectations of emerging construction contractors; establish construction contractors’ experiences with government payment methods; and to examine the implications of late payment on emerging contractors and their businesses. The study was conducted within a qualitative research paradigm. The participants were identified through non-probability snowball sampling. The sample consisted of five emerging construction contractors mainly from the Civil Engineering and General Building sectors in the Eastern Cape. The data was collected using semi-structured interviewing and was analysed using Tesch’s qualitative analysis explained by Hesse-Biber & Leavy (2011:201). The key results of the empirical study show that late payments have incapacitating effects on the development of emerging contractors. The conclusion reached from the empirical study includes recommendation that construction industry stakeholders form payment legislation aimed at curbing the delay of payments.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:20397 |
| Date | January 2014 |
| Creators | Mayeko, Bathandwa R |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | viii, 113 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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