The Impacts of Interim Payment Default in Public Projects: A Study in Kano State, Nigeria

This paper explores the occurrence of payment problems in Nigerian public projects and how it affects the project performance. This study was conducted qualitatively with 15 respondents who have directly involved in the payment process for public projects in Kano State, Nigeria. The study confirms that default in interim payment occurred in public projects resulting in 6 impacts to the project performance. The impacts are cash flow problem, dispute among parties, project overrun, suspension and termination, poor quality work, and environmental challenges. Although the contractors immediately suffered from the interim payment defaults, in the end, the problem will circle back to the client when the project experienced delay or quality impairment.