Abstract:
The successful completion of a construction project will depend on the timeliness of the
payments made by the employer, which benefits both the project as well as the parties
involved in it. If the payments get delayed, the resulting financial burden will go down
the supply chain to reach even the subcontractors and suppliers, thereby further
complicating the situation. Since payment delays are common in Sri Lankan construction
projects as well, especially when the projects are funded by the government, the proper
management of payment delays is important. This research was, therefore, conducted to
identify how the consequences of payment delays in government funded projects in Sri
Lanka could be properly managed. A literature review and sixteen semi-structured
expert interviews were carried out to collect the required data, which were subsequently
analysed using manual content analysis. The study identified 77 causes of payment
delays in government funded projects and 51 strategies that can minimise them. The
study recommends the enactment of the Construction Industry Payment Act, enforcement
of regulations that make it mandatory to have a sum of money deposited in an
independent escrow account, getting the employers to work only within the stipulated
budgets, and getting them to provide payment bonds.
