Examining the Problems of Delayed Payments

Running head: EXAMINING THE PROBLEMS OF DELAYED PAYMENTS
EXAMINING THE PROBLEMS OF DELAYED PAYMENTS
Name of the Student:
Name of the University:
Author Note:

1EXAMINING THE PROBLEMS OF DELAYED PAYMENTS
The delay in large project can be happened for various reasons. One of the main reasons
for the delay of the project is lacking of fund or payment. This paper discusses about the
problems related to the payment in the management of large projects. Different aspects regarding
the problem related to the payment has been discussed based on the findings from the various
articles in this study.
Discussion
Summary:
Owolabi, J.D., Amusan, L.M., Oloke, C.O., Olusanya, O., Tunji-Olayeni, P.F., Dele, O., Peter,
N.J. and Omuh, I.O., 2014. Causes and effect of delay on project construction delivery
time. International journal of education and research, 2(4), pp.197-208.
Financial issues are one of the main causes of delay of the project. It has been observed
that the financial issues may arise due to the financial condition of the project and the country.
The chosen paper has described the delays related to the financial issues (El Razek et al. 2014) .
It has been observed that the financial delays happen in most of the large project management.
The objective of the selected articles is to find the major issues for the happening of the payment
delay and its impact on project management.
There are several causes for the delays in the payment in large project management. One
of the main issues is lack of cash flow and poor financial condition of the client and lack proper
management in the business, problems in getting loan from banks and the financer. In order to

2EXAMINING THE PROBLEMS OF DELAYED PAYMENTS
identify these factors the surveys have been conducted and it has been found out that client plays
an important role in payment issues in the business.
The payment is considered one of the most important thing for the projects in large scale.
However, there are several causes for the delay of the project (Lu, Won and Cheng 2016) . The
paper has given emphasis on the impact of payment delay in construction project. The main
objective of this paper is to find out the main causes of payment delay and its impact on
compilation of the construction project. The ways to mitigate these issues has been discussed in
an effective way (Birrell and McCloskey 2016) . The paper concludes that it has been able to
identify the certain payment issues in the construction project. However, these are the primary
factors. There may be other functional and non functional factors which are needed to be
discussed.
The payment issue has been considered as an important factor for the projects in the
industries other than the construction industry (Legacy, Curtis and Scheurer 2017). The large
projects in renewable energy industry also face payment issue problem. Certain projects get
delayed due to the payment issues (Locatelli and Mancini 2014). The paper discusses about the
issues related to the monitory factors and their effect on the compilation of the project.
Critical evaluation of the article:
The article describes the impact of the payment delay in the large project management.
Initially, the main causes of the financial delays have been discovered. This finding has been
done on the basis of different surveys and interviews of the workers and the project management
team (Webster 2016). It has been found by the research that the client is most important factor in
case of making payment in the project.