EFFECTS OF DELAY IN INTERIM PAYMENT ON CONTRACTORS' WORKING CAPITAL IN LAGOS STATE, NIGERIA
AKINOLA, GBEMISOLA AJOKE AND AWOLESI, JACOB A. B., Volume 3 Issue 1, 2020 Pages 102-112, Published: 2020-09-25
Delayed payment to contractors has a serious effect on early completion of projects in the construction industry. The study sought to untie the effects of delayed payments problems facing Nigeria contractors. A logical approach was adopted for the study using literature research and surveys. A total of 80 questionnaires were administered to construction firms in Lagos State, Nigeria using stratified sampling technique. A quantitative research method was adopted. Descriptive statistics in form of frequency, percentage and Mean Item Score was used to analyze the data collected. The survey revealed that, delay in interim payment creates financial hardship, creates cash flow problems, creates negative chain effect on other parties as well as leads to abandonment of projects amongst others.The study recommends that the client should be mandated to sign payment bond with a bank and contractors should endeavor to attend trainings on cash flow and financial management. In conclusion, it is hoped that these findings would help in mitigating the payments problems of Nigerian contractors.