The effects of late payments by government on building contractors
- Authors: Piliso, Zhané Mary-Ann
- Date: 2024-04
- Subjects: Contractors , Building -- South Africa , Construction industry -- Finance -- South Africa , Construction industry -- Employees -- Finance -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/64761 , vital:73888
- Description: The built environment in South Africa encounters the challenge of late payment. The issue of late payment has posed a major challenge to the service delivery efforts of government agencies. The delay in remunerating contractors adversely impacts their cash flow and impedes the expansion of their businesses. The construction industry is capital-demanding, and the timely payment of contractors by clients serves to mitigate cash flow challenges experienced by contractors. The main objective of the study was to gain a deeper understanding of the effects of governments late payments to building contractors in the Eastern Cape. The study therefore examined the experiences of building contractors in the Eastern Cape. The secondary objectives were to identify reasons for late payment and how it affects the cash flow of the contractor; to examine the implications of late payment and the effect it has on business growth; and to determine the reasons behind loss of productivity on site caused by late payment. The study was conducted within a quantitative research paradigm. The epistemological stance of the researcher was objectivist. The population for this study consists of building contractors based in the Eastern Cape Province registered with the Masters Builders Association (EC). A probability sample was used to identify the participants in this research. The data was collected using a survey as the primary research strategy. The survey findings suggest that many issues, including inadequate client finance, prolonged processing time for payment documentation, and non-standard payment methods, all lead to delayed payments to the contractor. The findings of the empirical study showed that, despite the lack of particular laws or regulations governing the construction industry’s payment systems, the sector nonetheless uses a number of common guidelines to guide payment practices. The pay-if-paid approach is associated with several limitations, since the contractor cannot always receive full payments as a result of incomplete or defective projects. , Thesis (MSc) -- Faculty of Engineering, the Built Environment and Technology, School of Built Environment and Civil Engineering, 2024
- Full Text:
- Date Issued: 2024-04
- Authors: Piliso, Zhané Mary-Ann
- Date: 2024-04
- Subjects: Contractors , Building -- South Africa , Construction industry -- Finance -- South Africa , Construction industry -- Employees -- Finance -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/64761 , vital:73888
- Description: The built environment in South Africa encounters the challenge of late payment. The issue of late payment has posed a major challenge to the service delivery efforts of government agencies. The delay in remunerating contractors adversely impacts their cash flow and impedes the expansion of their businesses. The construction industry is capital-demanding, and the timely payment of contractors by clients serves to mitigate cash flow challenges experienced by contractors. The main objective of the study was to gain a deeper understanding of the effects of governments late payments to building contractors in the Eastern Cape. The study therefore examined the experiences of building contractors in the Eastern Cape. The secondary objectives were to identify reasons for late payment and how it affects the cash flow of the contractor; to examine the implications of late payment and the effect it has on business growth; and to determine the reasons behind loss of productivity on site caused by late payment. The study was conducted within a quantitative research paradigm. The epistemological stance of the researcher was objectivist. The population for this study consists of building contractors based in the Eastern Cape Province registered with the Masters Builders Association (EC). A probability sample was used to identify the participants in this research. The data was collected using a survey as the primary research strategy. The survey findings suggest that many issues, including inadequate client finance, prolonged processing time for payment documentation, and non-standard payment methods, all lead to delayed payments to the contractor. The findings of the empirical study showed that, despite the lack of particular laws or regulations governing the construction industry’s payment systems, the sector nonetheless uses a number of common guidelines to guide payment practices. The pay-if-paid approach is associated with several limitations, since the contractor cannot always receive full payments as a result of incomplete or defective projects. , Thesis (MSc) -- Faculty of Engineering, the Built Environment and Technology, School of Built Environment and Civil Engineering, 2024
- Full Text:
- Date Issued: 2024-04
A review of the performance of Botswana citizen building contractors
- Authors: Muche, Freeman Hansungule
- Date: 2011
- Subjects: Contractors , Building -- Botswana , Construction industry -- Botswana
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:9685 , http://hdl.handle.net/10948/1336 , Contractors , Building -- Botswana , Construction industry -- Botswana
- Description: Botswana was left underdeveloped in 1966 when it gained its independence from Great Britain. However, with the discovery of diamonds in the late 1970s, the economy of the country changed and two decades later the construction industry had experienced phenomenal growth. A growth propelled by the dominance of foreign contractors and the few citizen contractors available at the time resulted in a competitive environment in the industry. However, citizen contractors were unable to compete on the same level with their foreign counterparts, which was attributable to various factors such as a lack of resources and of business and technical experience. Being a major player in the construction industry, and realising the need to equip and encourage its own base of citizen contractors to actively participate in construction activities, the government of Botswana adopted new measures and policies that were meant to address the imbalances in the construction industry much to the advantage of citizen contractors. The rationale behind this study is to investigate the performance of citizen building contractors following the introduction of preferential procurement policies by the government of Botswana. This research study adopted the descriptive and analytical survey method which entailed the use of questionnaires and a review of the related literature for gathering relevant data. The sample strata included building contractors, consultants, and clients in the Botswana construction industry in Gaborone, Francistown, Selebi-phikwe, Maun, Serowe, and Lobatse. The empirical findings revealed that there is indeed a need to review some of the government assistance programs for citizen contractors in order to avoid the abuse of government resources and to further increase the citizen contractor’s knowledge base, skills, resources and capacity through mentorship and workshops. vi It is therefore incumbent upon government to protect those beneficiaries who genuinely require such assistance by critical assessment of the ineffective policies for the benefit of the whole industry
- Full Text:
- Date Issued: 2011
- Authors: Muche, Freeman Hansungule
- Date: 2011
- Subjects: Contractors , Building -- Botswana , Construction industry -- Botswana
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:9685 , http://hdl.handle.net/10948/1336 , Contractors , Building -- Botswana , Construction industry -- Botswana
- Description: Botswana was left underdeveloped in 1966 when it gained its independence from Great Britain. However, with the discovery of diamonds in the late 1970s, the economy of the country changed and two decades later the construction industry had experienced phenomenal growth. A growth propelled by the dominance of foreign contractors and the few citizen contractors available at the time resulted in a competitive environment in the industry. However, citizen contractors were unable to compete on the same level with their foreign counterparts, which was attributable to various factors such as a lack of resources and of business and technical experience. Being a major player in the construction industry, and realising the need to equip and encourage its own base of citizen contractors to actively participate in construction activities, the government of Botswana adopted new measures and policies that were meant to address the imbalances in the construction industry much to the advantage of citizen contractors. The rationale behind this study is to investigate the performance of citizen building contractors following the introduction of preferential procurement policies by the government of Botswana. This research study adopted the descriptive and analytical survey method which entailed the use of questionnaires and a review of the related literature for gathering relevant data. The sample strata included building contractors, consultants, and clients in the Botswana construction industry in Gaborone, Francistown, Selebi-phikwe, Maun, Serowe, and Lobatse. The empirical findings revealed that there is indeed a need to review some of the government assistance programs for citizen contractors in order to avoid the abuse of government resources and to further increase the citizen contractor’s knowledge base, skills, resources and capacity through mentorship and workshops. vi It is therefore incumbent upon government to protect those beneficiaries who genuinely require such assistance by critical assessment of the ineffective policies for the benefit of the whole industry
- Full Text:
- Date Issued: 2011
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