Omopariola, E D; Olugboyega, O; Windapo, A O and Albert, I (2022) Establishing the cost and time performances of projects executed by South African construction companies using different payment systems. In: Tutesigensi, A and Neilson, C J (eds.) Proceedings of 38th Annual ARCOM Conference, 5-7 September 2022, Glasgow Caledonian University, Glasgow, UK.
Abstract
The poor performance of construction projects and organisations is a global phenomenon. Inappropriate payment systems often impact the successful delivery of projects to client requirements and dispute avoidance. This study investigates the different payment systems employed and the performance of construction projects in South Africa. The study used a quantitative research approach employing questionnaires randomly distributed to construction companies. The researchers analysed eighty-eight projects comprising heavy construction, building maintenance, and commercial, industrial, institutional, and residential buildings. The study found that thirty-seven projects have cost underrun, with the highway maintenance project having the highest percentage of cost underrun using the interim project payment system. Based on these findings, the study concludes that heavy construction and commercial building projects executed using an interim payment system and payment on completion will experience underrun. Therefore, it is recommended that clients consider the project type in their choice of the payment systems.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | time performance; cost performance; project payment system; South Africa; South African construction companies |
| Index terms: | residential building, quantitative research, building maintenance, dispute, construction company, time performance, commercial building, construction project, client requirements, questionnaire, heavy construction, South Africa, cost performance, interim payment |
| Subjects: | economic analysis, data analysis and analytics, dispute resolution, organization, data collection methods, construction type, infrastructure and transport systems, project controls, professional development, production management, Geography, economics |
| Topics: | Engineering Principles, Information Management, Geographical Context, Project Management, Research Practice, Cost Management, Business Strategy, Construction Technology, Legal Issues, Time Control |
| Descriptive scope: | 3 PCA |
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