Aderibigbe, A; Umeokafor, N and Umar, T (2023) Constructing for the future: Can the duty of good faith improve payment in the UK construction industry? In: Tutesigensi, A and Neilson, C J (eds.) Proceedings of 39th Annual ARCOM Conference, 4-6 September 2023, University of Leeds, Leeds, UK.
Abstract
Adversarialism within the UK construction industry fosters poor payment practices. Thus, stakeholders down the supply chain consistently suffer cashflow issues which can cause insolvencies. This study consisted of a critical review of literature and found that while the UK government proffered solutions to combat poor payment practices, these have had minimal impact. Hence, poor payment practices persist. It also found that lack of adequate progress in battling payment problems suggest further research is needed to determine sufficient solutions. Furthermore, it explored if creation of a (statutory) duty of good faith (via legislation) applied to construction contracts could lead to a reduction in adversarialism, thereby causing improved payment practices. This led to recommendations of empirical investigations including whether legislation has an influence on good faith towards reducing poor payment practices by wholly tackling adversarialism through implementing statutory-backed good faith legislation. This research addresses the gap in knowledge of the possible and plausible impact good faith could have on adversarialism and by extension adversarial payment practices within the UK construction industry.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | adversarialism; construction contract; good faith; payment; insolvency |
| Index terms: | investigation, construction contract, duty, construction industry, good faith, insolvency, legislation |
| Subjects: | legal systems, contract type, contractual role, data collection methods, liability law, industry analysis, professional ethics |
| Topics: | Contract Administration, Legal Issues, Procurement, Research Practice |
| 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