Analyzing factors affecting payment delays to subcontractors in High-rise building projects

Abstract

This study aims to analyze factors leading to payment delays and their effects on subcontractors in high-rise building projects in Ho Chi Minh City. Based on previous studies, actual situations in projects, and expert opinions, the study identified 20 factors affecting payment delays and 08 their effects on subcontractors. The most significant factors are “invalid payment record” and “weak financial management competence”. Meanwhile, the biggest impacts of payment delays on subcontractors are “breaking subcontractors’ working plans” and “productivity decrease of subcontractors”. The study hopes to help subcontractors have an overview of the factors leading to payment delays as well as identify the most influencing factors and the effects of payment delays, thereby helping subcontractors come up with suitable solutions and effective strategies for their own companies to limit payment delays from owners and main contractors.