DETERMINING CRITICAL CONTRIBUTORY FACTORS OF PAYMENT DEFAULT IN CONSTRUCTION PROJECT IN NIGERIA

Issues in relation to payment is not new and it has always been debated widely in construction contracts research discipline. Payment default is one of a crucial issue that refers to the situation whereby the claimant claims the amount of payment, but they are not being paid in a whole or in part within a specific time (including under payment, delayed payment, and non-payment). In this case, majority of the contractor would be the direct and enormously affected party, however, this area is still under discovered empirically. This research aims to identify factors significantly contributing to the payment default in Nigerian construction projects. Survey was used in this research through questionnaire surveys. The targeted respondents were employer/clients, contractors, and consultants in Kaduna state who have been involved in any construction projects. The findings reveal that payment default is a pervasive and chronic problem in the Nigerian construction industry, experienced by 89.4% of respondents, with 78.9% of those affected facing it regularly. The most critical contributory factors were identified as Economic recession/slowdown, Paymaster’s withholding of payment, and Contractor’s default/Technical problems. The most severe impacts were Increased project costs, Legal disputes, and Delayed project completion. The most effective mitigating strategies were found to be Imposing penalties for late payment, Providing incentives for timely payment, and Improving project management practices. The outcomes of the study could be useful for the key parties in project to enhancing their understanding and commitment in mitigating payment default issues in all construction projects.