Omopariola, E D and Windapo, A O (2019) Domino effect of timely payment of contractors on project and organisation performance. In: Gorse, C and Neilson, C J (eds.) Proceedings of 35th Annual ARCOM Conference, 2-4 September 2019, Leeds Beckett University, Leeds, UK.
Abstract
The adverse effect of late payment by employers or contractors and consultants is a common phenomenon and a costly problem in the construction industry. This paper examines the domino effect of timely payment of contractors on cash flow, project performance and company performance from the perspective of domino theory. This stems from the view held by scholars that smooth cash flow guarantee the efficient delivery of construction projects and is a basis to develop and maintain a healthy and competitive construction industry. A systematic review of literature was adopted for the study employing a manual search of journals and conference proceedings. The literature review revealed that project and organization performance would be guaranteeing if there is effective management of incoming and outgoing finance within a construction company throughout the project durations. Considerations such as timely payment, frameworks, performance metrics, and effective management of cash flow, which would make construction project and organization performance in place, function well and practicable, were recommended in the study.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | cash flow; company performance; domino theory; project performance; timely payment. |
| Index terms: | project performance, guarantee, construction project, cash flow, literature review, conference, journal, late payment, duration, performance metric, construction industry, construction company, systematic literature review |
| Subjects: | project controls, organization, contract structure, financial management, performance measurement, data analysis and analytics, production management, research dissemination and communication, project management theory and practice, research evaluation and metrics, payment, industry analysis |
| Topics: | Contract Administration, Project Management, Research Practice, Quality Management, Cost Management, Procurement, Business Strategy, Time Control |
| Descriptive scope: | 5 PCTEA |
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