PMP20015 - Delay in Payment in Australian Construction Projects

This report provides a literature review focusing on the issue of payment delays in construction projects, particularly within the Australian context. It examines various journal articles that discuss the causes and effects of these delays, including project time overruns and cost increases. The review identifies key factors contributing to payment delays and explores potential mitigation strategies. A critical assessment of one selected article highlights its strengths in providing a detailed scenario of issues faced by project managers and the demotivation of employees due to payment delays, while also noting gaps in addressing the root causes of these delays and a lack of real-life examples. The report concludes with preliminary research questions and a personal reflection on the importance of timely payments and effective project management models. Desklib offers a wealth of similar solved assignments and past papers for students.

Running head: DELAY IN PAYMENT IN CONSTRUCTION PROJECT
Delay in payment in Construction Project
Name of the Student
Name of the University
Author note

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DELAY IN PAYMENT IN CONSTRUCTION PROJECT
Table of Contents
Literature review matrix.............................................................................................................2
Journal Articles.........................................................................................................................2
Summary of the most relevant article....................................................................................4
Critical assessment of the article:...............................................................................................5
Preliminary research questions..................................................................................................6
Personal reflection......................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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DELAY IN PAYMENT IN CONSTRUCTION PROJECT
Literature review matrix
Journal Articles
Keywor
ds
Issues related to delay in
payment in construction
site in Australia
Problems that
arise due to lack
of payment in
time during
processing of
construction
projects
Legal
problems
created by
workers in
constructio
n sites
Issues created
by the clients
due to the delay
in completion
of the task
Citation Coggins, J., Teng, B. and
Rameezdeen, R., 2016.
Construction insolvency in
Australia: reining in the
beast. Construction
Economics and
Building, 16(3), p.38.
Shehu, Z., Endut,
I.R. and Akintoye,
A., 2014. Factors
contributing to
project time and
hence cost
overrun in the
Australian
construction
industry. Journal
of Financial
Management of
Property and
Construction, 19(
1), pp.55-75.
Amoatey,
C.T.,
Ameyaw,
Y.A.,
Adaku, E.
and
Famiyeh,
S., 2015.
Analysing
delay
causes and
effects in
Australian
state
housing
Chancellor, W.
and Abbott, M.,
2015. The
Australian
construction
industry: is the
shadow
economy
distorting
productivity?.
Construction
Management
and
Economics, 33(
3), pp.176-186.

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DELAY IN PAYMENT IN CONSTRUCTION PROJECT
constructio
n
projects. I
nternation
al Journal
of
Managing
Projects in
Business,
8(1),
pp.198-
214.
Retriev
ed from
Google scholar Google scholar Google
scholar
Google scholar

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DELAY IN PAYMENT IN CONSTRUCTION PROJECT
Summary of the most relevant article
“Shehu, Z., Endut, I.R. and Akintoye, A., 2014. Factors contributing to project time and
hence cost overrun in the Australian construction industry. Journal of Financial
Management of Property and Construction, 19(1), pp.55-75.”
Authors of the journal is selected as the best book to refer as it provides a detail
scenario update of the process major issues that are present during the processing of the
construction projects. This journal also states the impacts that the project manager faces due
to delay in the payment of the systems. This journal also explains different payment methods
and their both positive and negative aspects of the models. This journal also states that in case
of using traditional payment, all the issues that are created due to processing of delay
management are mitigated in the end of the project completion period. This journal also
discuss the fact that traditional payment method is not very useful and impactful in the
processing of delay management. This journal also states the framework that the fair value
model states the processing of acquisition and distribution cost is initially paid in this process.
This journal also helps in understanding the fact that the cost of substitutes re initially paid
during the starting of the project, which helps in proper understanding of the project
management system. This journal also helps in mitigating issues that are caused due to the
processing of payment with an extensive delay in time. This journal closely elaborated the
instances like real time scenario depicting the fact that employees who have been working
under the project gets suffered. This journal also states the fact that the employees of the
organization gets demotivated due to delay in payment during processing of the project. This
journal elaborates the issues that might arise in case the employees who are working in this
project gets demotivated. This journal also states the methodologies that must be incurred by
the project manager in order to keep the employees of the project motivated. This journal gets

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DELAY IN PAYMENT IN CONSTRUCTION PROJECT
such high rating because this journal does not only state the problems but also states the
mitigation methodologies.
Critical assessment of the article:
This journal has been very distinctive in nature. This leads to the fact that the readers
of the journal gets benefitted from the journal as the efficiency of the journal increases due to
this. Proper compartmenting of the book helps the readers to classify the sections they need to
research about. This also acts as the major reason that increases the speed of the research. By
increasing the speed of research they can complete the entire project before time and with
better accuracy. Proper compartmenting of the journal also attracts researchers of several
genre. This is what makes the journal so popular among the project managers that takes
active part in the processing of construction business.
This journal also suffers from literature gap. This literature gap is due to the fact that
the journal is very much specific in nature and only discusses about the problems that arise
due to the delay in payment but this journal never discusses about the reasons due to which
the this problem arises. This also acts as the major reason that the project manager does not
get any idea regarding the processing and handling of situations that might affects the
efficiency of work function handling. Another literature gap that this journal on issues
regarding delay in payment faces is that it does not provide distinctive real life examples of
issues that are created due to delay in the processing of payment.
Another aspect that deserves appraisal is that the processing of data is that the data
that are present in the journal is not referenced properly. This is the major reason why this
journal has not gained global acceptance. Despite its disadvantages, the major aspect of going
through this journal is that the data that is present in this journal is very specified in nature.

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DELAY IN PAYMENT IN CONSTRUCTION PROJECT
Preliminary research questions
In the review, we study the following research questions:
 RQ1: What are the issues that are caused due to the delay in payment in construction
sites?
 RQ2: How to mitigate the issues that are caused due to delay in payment
 RQ3: what are the project management models that must be implemented in order to
complete the project without any kind of issues and conflicts?
 RQ4: Why is it really important to complete the payment on time?
 RQ5: which payment strategy must be followed to efficiently perform the payment
system?
 RQ6: Disadvantages of traditional payment system.
Personal reflection
According to me this project has helped me in understanding the importance of
payment in proper time, leading to the fact that in case any issues related to the delay in
payment of the employees in any part of the society can be easily handled by me. I will be
capable enough to use my experience and get out of the situation with proper mitigating
technique. This project also provided me an in depth learning, leading to the fact that data
analytics of this kind of issue mitigation will also be provided. I have also learned from this
journal that performing project management in any sector of the organization will be possible
and easier for me as I will be having a conceptual as well as practical knowledge. This
journal is s special to me due to the fact that the data that is present in this journal is very
precise in nature. This journal also provides a compartmentalised data section which helps me
in increasing the research speed and allows me to avoid the sections of the journal that is not

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DELAY IN PAYMENT IN CONSTRUCTION PROJECT
of my use. This journal also helps us by describing all the payment models and suggests the
best payment strategy that helps in mitigating payment related issues in the building sector.
Conclusion
To conclude with the topic I would like to say that the processing that was required to
complete the project was very much learning in nature. This project might also helps me to be
a successful project manager in near future and deal with problems that I might mitigate with
the help of the knowledge present in the journal

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DELAY IN PAYMENT IN CONSTRUCTION PROJECT
References
Amoatey, C.T., Ameyaw, Y.A., Adaku, E. and Famiyeh, S., 2015. Analysing delay causes
and effects in Australian state housing construction projects. International Journal of
Managing Projects in Business, 8(1), pp.198-214.
Chancellor, W. and Abbott, M., 2015. The Australian construction industry: is the shadow
economy distorting productivity?. Construction Management and Economics, 33(3), pp.176-
186
Coggins, J., Teng, B. and Rameezdeen, R., 2016. Construction insolvency in Australia:
reining in the beast. Construction Economics and Building, 16(3), p.38.
Shehu, Z., Endut, I.R. and Akintoye, A., 2014. Factors contributing to project time and hence
cost overrun in the Australian construction industry. Journal of Financial Management of
Property and Construction, 19(1), pp.55-75.