Sources of Payment Problems in the Construction Industry of Kenya: a Perspective of the National Construction Authority

Abstract

The underlying sources of payment problems have not only troubled many countries but have also seen contractors and those below the supply chain blacklisted by the credit reference bureaus. Whilst those who contract in the construction industry expect prompt and regular payments for work done, in reality this happens not to be the case. This paper therefore investigates the sources of payment problems from the perspective of the National construction authority. Besides review of secondary literature, a focus group discussion was employed to collect qualitative data. By a way of themes synchronized with a "black letters" approach, data was analyzed and discussed. The study finds out that sources of payment problems are attributable to client related factors, contractor related, actions of the consultants and the procurement route chosen. It is generally hoped that the awareness created around this subject may trigger industry to commission further research and subsequent action by a way of new regulations.