Central to the sustainable and competitive growth of the South African construction industry is a predictable cash flow through on time payment by clients to contractors. However, chronic late payments, a recurring problem in the industry, especially in the public sector, is bringing untold hardship to contractors by derailing their competitiveness and also eroding the trust among the supply chain partners to the extent that some firms end up closing business in the industry. The situation is viewed from the lean construction perspective as an obstacle that is preventing the accrual of the required value to project parties in the construction industry. This research addresses the causes of late payments to contractors and the role of the quantity surveyor (QS) in terms of influencing early payment from a lean construction perspective. A mixed method approach was used for compiling the primary data for the study. Sequentially, one hundred and two (102) quantitative and twelve (12) interview questionnaires were administered to selected contractors and construction professionals working predominantly on public sector projects. The findings revealed that the approval process for evaluation and certification by the client- appointed agent and intermediary institutions is taking longer than contractually allowed, with parties independently undertaking their evaluation prior to the certification date. This is found to be adverse to achieving consensus on the values of the works for authorisation. Other significant barriers are the lack of funds to authorise payment, random auditor general’s documentation changes, lack of administrators’ system integration and capacity to handle cyclical payment processing. Also, contractors have been found to be in default of timeously submitting complete claim documents. It is therefore recommended that the client agents should partner with the contractor in regular design and documentation reviews, arranging the payment process and should also meet jointly to prepare monthly evaluations. In addition, contractors should be mentored from the onset of the project regarding all the necessary documentation and supporting documents that will be required by the client to ensure that payment approvals are not delayed. The payment authori-sation agent’s capacity should be enhanced through training and improved powers as a singular point of control to perform efficiently and their systems and processes should be integrated to ensure that all parties are implementing the same protocols.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:26437 |
| Date | January 2016 |
| Creators | Akuffo-Ntow, Eric Ayesu |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Engineering, the Built Environment and Information Technology |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MSc |
| Format | 118 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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