Causes of Payment Defaults in the Construction Industry of Kenya: Small and Medium Sized Contractor’s Perspective
Mark Obegi Kenyatta
Mark Obegi Kenyatta, Msc. B.Phil.Tech, Construction Claims & Construction Research Jomo Kenyatta University of Agriculture and Technology, Juja, Kenya.
Manuscript received on March 12, 2016. | Revised Manuscript received on March 27, 2016. | Manuscript published on April 25, 2016. | PP: 1-8 | Volume-4 Issue-4, April 2016. | Retrieval Number: D1071044416
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The concept of cash flow as a result of payments for work done in construction projects is not only an old age aspect of the construction industry but also an issue of major concern to project participants and industry at large. This paper investigates the causes of payment difficulties from the small and medium sized contractors in Kenya. Upon the review of literature on the subject matter, data was collected by a way of focus group discussion. The qualitative data is subsequently analyzed thematically while being linked to the wider literature. The study establishes that payment defaults in Kenya are as a result of variations, corruption from client agents, inadequate budgetary allocations, delay in certification and political interference. It is hoped that a greater level of awareness of these causes to industry players would probably help in mitigating the payment problems.
Keywords: Payments, construction projects, construction contracts.