Payment Issues: the Case of Selected Public Building Construction Projects in Addis Ababa
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Date
2015-03
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Addis Ababa University
Abstract
Proper payment in a construction contract is very essential and it is one of the major factors that
determine the fate of a construction project; whether to be successful or not. The thesis is mainly
interested in identifying the major payment problems, their causes and consequences in public
building construction projects that are being undertaken in the city of Addis Ababa, starting from
the year of 2001 to 2004 E.C. Payment problems in the construction industry may differ from
delayed payments to partial certification/under certification of payments and none payment of sums
due. The research identified which of those problems are there in the public building construction
projects, along with their causes and the consequences they had on the projects, using questionnaire
as a main data collection instrument and informal interviews which were carried out with different
professionals among the respondents of the questionnaire. Accordingly, payment delay and partial
payment are identified to be the major problems. The employer’s bureaucratic payment system, the
consultants’ bias towards the employer and the contractors’ poor progress in their works are found
to be the main causes of the problems. Delay in project completion time and cost overrun are found
to be the major consequences of the problems.
Key words; Construction payment, payment delay, partial payment, payment system, work
progress, payment certification, project success.
Description
Keywords
Construction payment, Payment delay, Partial payment payment system, Work progress, Payment certification, Project success.