An Investigation into the Causes of Payment Delays and Deliberate Delay Tactics in Public Construction Projects in Saudi Arabia

Abstract

Many scientific publications pointed out delays in the progress of payments by owners as one of the top direct causes of project delays and disputes. This research investigates the causes of payment delays and explores deliberate delay tactics and their reasons within Saudi Arabian public construction projects. This research employs a robust mixed methodology, an extensive literature review, and preliminary semi-structured interviews to identify the causes of payment delays and possible tactics and reasons for deliberate delays or procrastinated payment. Subsequently, a questionnaire survey is distributed among experienced personnel. The survey aims to verify the results of the first phase, assess occurrence rates of the causes of payment delays, study tactical forms used by parties to delay payment, and identify reasons for such practices. The findings of the study reveal that the contractual issues group has the highest score for occurring, deliberate disruptions occur although they are not prevalent, tactics to deliberate delays exist and are practiced, and all the possible forms of deliberate delays under investigation and reasons for deliberate delays are confirmed valid. This study provides valuable insights for businesses and policymakers seeking to comprehend the issue of payment delays in Saudi Arabian public construction projects.