Studying Payment Provisions under National and International Standard Forms of Contracts

Abstract

AbstractDelayed payment is becoming a critical issue in the construction industry. Late payment and/or nonpayment cause severe cash-flow problems to contractors and across the entire contracting supply chain. There are many factors that cause late payment problems, including owner’s poor financial management; disagreement on valuation of executed works and consequent delayed certification; using paid-when-paid clauses with subcontractors, suppliers, and manufacturers; and noncompliance with contractual provisions in requesting and claiming payments. The objective of this paper is to present a study of the payment provisions under most widely used standard construction contracts, both nationally and internationally. This paper studies the payment provisions under traditional standard construction contracts including those published by the American Institute of Architects (AIA), ConsensusDocs, Engineers Joint Contract Documents Committee (EJCDC), International Federation of Consulting Engineers (FIDIC), Wor...