The influence of delayed payments on time overrun in public sector projects

Abstract

This study is conducted to investigate the relationship between payments delay and time overrun in public projects. To achieve the study objectives, a questionnaire survey was performed. Results indicate that the top factors affecting payment delay are: client financial problems, delay in work approval, contractor submits claims with mistakes, contractors' failure to do work based on bill of quantity, and contractors' failure to follow the certain guidelines in claims. The study also concludes that the top five causes of time overrun include: poor labour productivity, lack of contractor experience, inadequate production of raw materials by the country, number of projects going at the same time, and late design changes. Regression analysis for data collected from 30 public construction projects shows a good correlation between payment delay and time overrun. This study is the first study that addresses the relationship between payment delay and time overrun in Palestine and other neighbouring countries.