Mewomo, M C (2019) The construction industry stakeholders preliminary views on the proposed South African prompt payment and statutory adjudication regulations. In: Gorse, C and Neilson, C J (eds.) Proceedings of 35th Annual ARCOM Conference, 2-4 September 2019, Leeds Beckett University, Leeds, UK.
Abstract
Payment default inform of delayed payment or non-payment is a key barrier to the survival of sub-contractors in the South African construction industry. Late payment and cash flow problems have not only negatively impacted on the construction project progress but has, in some instances, resulted in protracted disputes thereby affecting significantly the growth and performance of the construction industry. Consequently, following the successful adoption of the security of payment and statutory adjudication legislation in the United Kingdom (UK) and some other jurisdictions across the globe, the South African (SA) construction industry through the Construction Industry Development Board (CIDB) has prepared a payment and statutory adjudication draft regulations to address the peeved issues of late payment and disputes problems within its industry, of which the subcontracting sector of the industry usually bears most of the brunt. Presently, the draft regulation is about to be converted into law. In anticipation of converting the draft regulations into law, this study seeks to investigate and analyse sub-contractors' first impressions of the proposed draft regulations and their views to invoke the provisions in the payment regulations and adjudication standard. The study will employ a quantitative research approach using a semi-structured questionnaire to gather information from sub-contractors within the KwaZulu-Natal Province of South Africa. The collected data would be statistically analysed and reported.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | construction industry; payment default; statutory adjudication; payment regulations; South Africa |
| Index terms: | construction project, regulation, questionnaire, sub-contractor, security of payment, late payment, construction industry, South Africa, survival, adjudication, legislation, cash flow, statutory adjudication, default, quantitative research, United Kingdom, subcontracting, dispute, jurisdiction, construction industry development |
| Subjects: | dispute resolution, practitioner, organization, data collection methods, environmental science, legal systems, data analysis and analytics, development economics, Geography, warranties, production management, financial management, political science, industry analysis, payment |
| Topics: | Legal Issues, Supply Chain Management, International Construction, Contract Administration, Cost Management, Research Practice, Project Management, Geographical Context, Roles and Professions, Sustainability, Governance |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here