A Report on Problems of Delayed Payments in Large Project Management

This report examines the problems associated with delayed payments in the management of large projects, drawing upon various articles to discuss different aspects of the issue. It identifies key causes of payment delays, such as poor cash flow, financial instability of clients, and difficulties in securing loans. The impact of these delays on construction and renewable energy projects is highlighted, emphasizing how they affect project timelines and overall success. The report critically evaluates the role of the client in payment processes and the importance of maintaining a steady cash flow throughout the project lifecycle. Furthermore, it addresses the consequences of delayed payments, including disruptions in supply chain management and potential damage to client relationships. The report concludes by reflecting on the importance of timely payments and suggesting mitigation strategies to avoid negative outcomes, making it a valuable resource for understanding and addressing financial challenges in large project management. Desklib provides access to this and other solved assignments to support students.

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.

3EXAMINING THE PROBLEMS OF DELAYED PAYMENTS
The compilation of the project follows a certain life cycle . In order to complete each
stages of the life cycle, certain amount of money is needed. Success of the project depends on the
cash flow for the project. The cash flow of the money is dependent on different matters like the
economic condition of the market and the assigned budget for the project. Apart from these
constrains from taking loan from the banks is also a problem in maintaining the cash flow.
The effect of delay in the payment also effects the time for the compilation of the project.
The compilation of the project revolves around the different stages of the project life cycle. In
this case, funding is important as the resources and the equipments for the development of the
project needs (Cardew 2017) . In case, if there is a lack of financial resources the progress of the
project may get restraint. In this case, the delivery of the final product or the service is delayed
which is not desirable.
The finding of the paper indicates that the main issue regarding the payment is a problem
which generates mainly by the client of the project. Some cases, the client has the lack of
resources or they may find it difficult to get the loan for the development of the project.
Primary questions regarding the discussion of the article:
There are several questions arise from the discussion regarding the delay in payment for
the large projects and the consequences of the delay in the payment of the project. However, the
main question regarding this discussion is that whether there is any significance of the delay of
the payment in the delivery of the project (Owolabi et al. 2014). The other concern regarding this
discussion is that if there is any consequence of the delay of the project and identification of the
cause of the delay. The paper gives an insight to the techniques and the ways for the mitigation

4EXAMINING THE PROBLEMS OF DELAYED PAYMENTS
of the payment delay in the project. Further recommendations have been made in order to avoid
the negative consequences of the delay of the payment in the large project.
Reflection
I have understood the importance of the making the payment for the development stages
of the project. It can be seen that the delay in the payment of the project can have various
negative consequences. Some of the consequences include the delay in the delivery of the project
and can affect the client base and reputation of the team members of the project. On the other
hand there are various factors for the lack of cash flow. Some of these factors include constraints
in the taking loan from the bank, financial crisis in the market and financial resources for the
business management of the project. There are various ways for the mitigation of the financial
issues in the project development. The delay in the delivery of the project outcome is considered
one of the major risks in the development of the project. Delay in the payment or failure of the
payment in the project management can have negative consequences and can affect the whole
supply chain management in the development of the project. The interruption in the supply chain
management in the project may cause the unavailability of the resources required for each steps
in the project development life cycle. The chosen article has discussed about the payment failure
and payment delay in the large projects. Some of these large projects are the projects regarding
construction and the projects in the field of renewable energy. Some of the ways have described
in the discussion that will help to mitigate then lack of cash flow in the development of the
project. The recommendations can be applied in order to mitigate the consequences of the delay
in the payment of the projects.

5EXAMINING THE PROBLEMS OF DELAYED PAYMENTS
References
Birrell, B. and McCloskey, D., 2016. Sydney and Melbourne’s housing affordability crisis report
two: No end in sight. Canberra: The Australian Population Research Institute.
Cardew, R., 2017. Privatisation of infrastructure in Sydney, Australia. In Infrastructure
Provision and the Negotiating Process (pp. 129-146). Routledge.
El Razek, M.A., Hosny, H.E.D. and El Beheri, A., 2014. Risk Factors in Construction Projects
Cash-Flow Analysis. International Journal of Computer Science Issues (IJCSI), 11(1), p.199.
Legacy, C., Curtis, C. and Scheurer, J., 2017. Planning transport infrastructure: examining the
politics of transport planning in Melbourne, Sydney and Perth. Urban Policy and
research, 35(1), pp.44-60.
Locatelli, G. and Mancini, M., 2014. Controlling the delivering of projects in mega-events: An
application on EXPO 2015. Event Management, 18(3), pp.285-301.

6EXAMINING THE PROBLEMS OF DELAYED PAYMENTS
Lu, Q., Won, J. and Cheng, J.C., 2016. A financial decision making framework for construction
projects based on 5D Building Information Modeling (BIM). International Journal of Project
Management, 34(1), pp.3-21.
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.
Webster, R., 2016. Payment by results: Lessons from the literature. Online. Retrieved
September, 6, p.2017.