Delayed Payments: The Impacts on Construction Subcontractors in South Africa

Paymentdelays remain a persistent problem in construction globally. This can be challengingfor subcontractors who depend heavily on steady cash flow. This study exploresthe impacts of delayed payment on subcontractorsin theSouth African construction industry. A quantitative approach was adopted, usingdata collected through a closed-ended questionnaire administered via GoogleForms to subcontractors selected through random sampling. The questionnaire wasdeveloped after a comprehensive literature review. The findings show that delayedpayment disrupts cash flow, increases disputes among project parties, andundermines project performance. Persistent non-payment or late payment alsoweakens trust and cooperation between main contractors and subcontractors,potentially triggering claims, disputes, and litigation. These outcomes place subcontractorsunder significant financial pressure and reduce the overall efficiency andsustainability of project delivery. The study highlights the need for strongerpayment practices and improved financial management within the industry toprotect subcontractors and support more effective project implementation inSouth Africa.