ScienceDirect

Available online at www.sciencedirect.com

ScienceDirect
Procedia Computer Science 00 (2022) 000–000
Available online at www.sciencedirect.com www.elsevier.com/locate/procedia
Procedia Computer Science 00 (2022) 000–000
www.elsevier.com/locate/procedia
ScienceDirect
Procedia Computer Science 219 (2023) 1801–1806

CENTERIS - International Conference on ENTERprise Information Systems / ProjMAN -

International Conference on Project MANagement / HCist - International Conference on Health and
CENTERIS - International
Social CareConference
Informationon ENTERprise
Systems Information2022
and Technologies Systems / ProjMAN -
International Conference on Project MANagement / HCist - International Conference on Health and
Social Care Information Systems and Technologies 2022
Exploring Causes of Delay in Payment from Parties involved in
Road and
Exploring Causes Highway
of Delay Projectsfrom
in Payment in Thailand
Parties involved in
Road and Highway
Borvorn Projects
Israngkura in Thailand
Na Ayudhya a
*,

Borvorn Israngkura Na Ayudhya , a

Department of Civil Engineering, Rajamangala University of Technology Thanyaburi,Thanyaburi,
* Patumthani, 12110, Thailand a

Department of Civil Engineering, Rajamangala University of Technology Thanyaburi,Thanyaburi, Patumthani, 12110, Thailand a

Abstract

Delay
Abstractin payment is considered to be one of the most periodically arisen problems in the construction industry. It harms time, cost,
and quality. This paper presented a result of a survey which investigated causes of delay in payment of road and highway
Delay in payment
construction is considered
projects in Thailand. toParties
be one involved
of the most periodically arisen failure
in construction-borne problems in the construction
identified the causes ofindustry.
delay inItpayment
harms time,
and cost,
their
and quality. This paper presented a result of a survey which investigated causes of delay in payment
severity through a questionnaire survey. The delay in payment causes were categorized into 4 main groups (owner, contractor, of road and highway
construction
consultant andprojects in Thailand.
architect) which was Parties
basedinvolved in construction-borne
on parties-borne failure identified
failure. The questionnaire listedthe
of causes of delay
41 factors in payment
and sought and their
to identify the
severity through a questionnaire survey. The delay in payment causes were categorized into 4 main groups
significance of major delay in payment factors and determine their impact on road and highway construction projects. The total of (owner, contractor,
consultant
120 and architect)
responders was asked which was based
to weight on parties-borne
the degree failure.via
on seriousness Thea questionnaire
questionnaire listed
survey.of The
41 factors
surveyand sought tothat
concluded identify the
top five
significance of major delay in payment factors and determine their impact on road and highway construction
severity indexes in causing a delay in payment were delays in progress payment, the financial status of owners, poor qualification projects. The total of
of
120theresponders
contractors'
was technical
asked to staff,
weightdelays
theindegree
issue approval documents
on seriousness via aand failure in applying
questionnaire survey. forTheclaims.
survey concluded that top five
severity indexes in causing a delay in payment were delays in progress payment, the financial status of owners, poor qualification
1877-0509© 2022 technical
of the contractors' The Authors. staff,Published
delays inby Elsevier
issue B.V.documents and failure in applying for claims.
approval
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
© 2023 The Authors.
Peer-review under Published byofElsevier
responsibility B.V.
the scientific
1877-0509© 2022 The Authors. Published by Elseviercommittee
B.V. of the CENTERIS - International Conference on ENTERprise
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Information
This is an Systems
open access / ProjMAN
article under- International
the CC Conference
BY-NC-ND on Project
license MANagement / HCist - International Conference on Health
(https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the CENTERIS – International Conference on ENTERprise Information
and Social
Peer-review Care Information Systems of and
the Technologies
scientific 2022
Systems / ProjMAN - International Conference on Project MANagement /CENTERIS
under responsibility committee of the - International
HCist - International Conference
Conference on HealthonandENTERprise
Social Care
Information Systems / ProjMAN
Information Systems and Technologies 2022 - International Conference on Project MANagement / HCist - International Conference on Health
and Social Care Information Systems and Technologies 2022
Keywords: Risk; Delay; Payment; Road; Highway

Keywords: Risk; Delay; Payment; Road; Highway

* Corresponding author. Tel.: +6681-838-1112

E-mail address: borvorm.i@en.rmutt.ac.th, ayudhya2003@yahoo.com
* Corresponding author. Tel.: +6681-838-1112
1877-0509 © 2022 The
E-mail address: Authors. Published by ayudhya2003@yahoo.com
borvorm.i@en.rmutt.ac.th, Elsevier B.V.
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review
1877-0509 ©under2022 responsibility of the scientific
The Authors. Published committee
by Elsevier B.V. of the CENTERIS - International Conference on ENTERprise Information Systems /
ProjMAN
This - International
is an open Conference
access article on CC
under the Project MANagement
BY-NC-ND HCist - International Conference on Health and Social Care Information Systems
license/ (https://creativecommons.org/licenses/by-nc-nd/4.0)
and Technologies
Peer-review under 2022
responsibility of the scientific committee of the CENTERIS - International Conference on ENTERprise Information Systems /
ProjMAN - International Conference on Project MANagement / HCist - International Conference on Health and Social Care Information Systems
and Technologies 2022
1877-0509 © 2023 The Authors. Published by Elsevier B.V.
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the CENTERIS – International Conference on ENTERprise
Information Systems / ProjMAN - International Conference on Project MANagement / HCist - International Conference
on Health and Social Care Information Systems and Technologies 2022
10.1016/j.procs.2023.01.476
1802 Borvorn Israngkura Na Ayudhya / Procedia Computer Science 219 (2023) 1801–1806
2 Israngkura Na Ayudhya, B/ Procedia Computer Science 00 (2022) 000–000

1. Introduction

Road and Highway is the most crucial contribution to economic development and brings important social
benefits. In addition, providing access to employment, social health and education services make a highway network
crucial in fighting against poverty. Regarding the importance of road and highway construction projects, several
researchers studied and explored various aspects of delaying in road and highway projects. Remon, Asmaa, and Abdel
[1] explored delay causes of road construction projects in Egypt. Serdar and Hosseini [2] conducted a comprehensive
study of the 123 academic articles on the causes of delays in construction projects. Agyekum-Mensah, and Knight [3]
conducted a survey on the professionals perspective on the causes of project delay in the construction industry. Ahmed,
Alaa, and Neil [4] found major causes of delivery delays in public construction. However, there had been a little explicit
consideration on delay in payment subject. The payments of sub-contractors were normally delayed by main-contractor
while the payments of main-contractor were occasional delayed by owner. The delayed in payment was due to either
financial instability of debtee or the clauses of contract agreement (pay when paid and pay if paid). The root of delayed
in payment was either made by intentions or inevitable consequence of mis-actions. The problem was normally solved
by increasing quotations for the next tender or refraining to continue business with debtee. The causes of delayed in
payment created further risks to project delivery. The payment condition of public sector and private sector are
different. Adding, bureaucratic hierarchy system causes the payment system even complicated. It is vital to understand
the causes of delays in payment and try to mitigate arisen problems. The objective of the study is to analyse statistically
the cause of delay in payment factors in road and highway construction project in Thailand.

2. Literature reviews

The process of making payment to contractors involved three main parties (owner, contractor and consultant).
In each interim payment, the process of payment to contractors was normally divided into three stages. The first stage
was the submission of invoice from contractor to owner or owner's representative. The second stage was inspection
and issued the certificate of inspection. It was counted as both quantity surveyor/engineers and consultant has approved
and issued certificate on agreed amount of work done. The third stage was payment which owner executed the payment
via direct payment. Causes of delaying in payment involve the occurrence of at least two independent delays at the
same time. Those delays are both beyond the contractor's control and within the contractor's control. The delay in
payment causes a domino effect on the cash flow of all parties involved directly or indirectly to the project. It affects
time, cost and quality performances of the project. Eventually, the financial and overall profitability of contractor,
subcontractors and material providers decreased [5]. Several factors cause delay in payment. Most of the projects, it
involves a failure in practice of owner, contractor and consultant. The causes of failure in making payment on time by
owner are failure to understand the contract agreement, implement good attitude by wrongfully withholding payment
to the contractor unduly and failure to follow the preset procedure [6] while causes of contractor-borne failure in
executing payment to contractors on time are failure to agree to the valuation of work, error in contractor claims and
failure in applying for claims [7]. The causes of consultant-borne failure in making payment to contractors on time are
delay in the valuation of work done by a quantity surveyor, lack of co-ordination of project team activities and the
inability of consultants to manage funds [8]. Addition, the causes of designer-borne delay in payment to contractor
occurs when each design phase is need to adopted applications, techniques of design management and different
software's used [9]. In aspect of contractual payments, the phase of payment in contract agreement is mostly paid by
lump sum. Therefore, Identify the causes of delay in payment by parties involved in construction project, helps to
further understand the causes of delay in payment in government-funded projects.
 BorvornAuthor
Israngkura
name Na AyudhyaComputer
/ Procedia / Procedia Computer
Science Science
00 (2022) 219 (2023) 1801–1806
000–000 18033

3. Research methodology

This study uses a quantitative approach to analyses delay in payment factors. The study can be divided into
three phases: literature review, analysis of data collection and comparative between delay in payment factor and
findings of this case study. A structured questionnaire was made through academic experts and professionals who
involved in road and highway construction projects. The questionnaire was divided into three parts. The first part was
related to general information of companies and respondents. The second part was a list of identified causes of delay
in payment in road and highway construction projects. The third part was the effects of delaying in payment which
will harm to a construction project. These delay in payment causes were categorized into 4 main groups (owner,
contractor, consultant and architect) which was based on parties-borne failure. The questionnaire listed of 41 factors
and sought to identify the significance of major delay in payment factors and determine their impact on road and
highway construction projects. The 160 questionnaires were circulated to public owners, contractors, consultants, and
architects who were engaged in road and highway construction projects. The Severity index technique was used to
rank and categorized the identified delay in payment factors. Addition, responders also were asked to provide their
point of view on the degree of seriousness when a delay in payment to contractor happened. Responders were given a
list of effects which delay in payment inevitably occurred.

3.1 Ranking of delay in payment causes

The recommended delay in payment causes in road and highway construction projects are ranked by the
level of the severity index. The following equation is used to rank those delay in payment causes which has a basis
of impact level as identified by the participants:

𝒏𝒏 𝟏𝟏𝟎𝟎𝟎𝟎
Severity index (%) =  a ( ) × (1)
𝑵𝑵 𝟓𝟓

Where

a = Constant expressing weighting given to each response, it ranges from 1 for no influence up to 5 for very high
n = Frequency of the responses
N = Total number of responses

4. Findings and Results

A face to face interview technique is used to minimise misinterpretation which may be distorted the survey
results. The response rate of owners, contractors, consultants and architect is shown in Table 1. The source of funds
profile was showed in Table 2. While Table 3 represents the summary of payment's performance. The number indicates
the average number of days used in each stage of the payment process. The positive number represents overdue day
while the negative number indicates the number of days used in the payment process was lesser than the contract
agreement. The delay in payment caused by parties involved in projects is analysed and evaluated. The rational number
behind the factors evaluation and group formation is attributed to severity index, rank in its category and overall rank,
viz (SI, R, O). Regarding the analysis of delay in payment caused by parties involved in road and highway construction
projects was tabulated by using Severity index (SI) values.
Table 1 Questionnaire result

Parties involved Sent out Received Per cent

Owner 25 20 80
Contractor 65 47 72.3
Consultant 35 25 71.4
Architect 35 28 80
Total 160 120 75
1804 Borvorn Israngkura Na Ayudhya / Procedia Computer Science 219 (2023) 1801–1806
4 Israngkura Na Ayudhya, B/ Procedia Computer Science 00 (2022) 000–000

Table 2 Profiles of financial source

Classification Type of owner Source of funds Number of projects

Local road Provincial Administrative Organizations Local 15
Main road Central government Central 22
Highway Central government Central 13
Total 50

Table 3 Average performance of payment process

Submit Inspect Payment Sum

Type of works Budget
(days) (days) (days) (days)
Local +2 -4 +12 +10
Local roads
Central 0 +5 +2 +7
Central +1 +5 +15 +21
Main roads
Local 0 +3 +22 +25
Expressways Highways Central 0 -3 -21 -24
Northern Central -1 -2 -7 -10
Central Central -2 -4 +2 -4
North East Central +1 -4 +4 +1
East Central +2 +4 +7 +13

4.1 Delay in payment caused by parties involved in construction projects

The original data is used to find the number of days used in disbursement procedure. The disbursement
procedure is divided into three stages. The first activity is submission invoice. The second stage is the inspection and
issued the certificate of inspection and the third stage is the payment to contractors. The number of days used in each
stage is defined as the number of days allowed to complete in each activity which is written in contract agreement
subtract with the number of days counted as day one of working day in that stage and subtract with the sum of the
number of days of the weekend, unforeseen events which cease work progress and holidays. Regards to ranking causes
of delay in payment by severity index, the findings showed the causes of delay in payment to contractors which were
an owner-borne failure. It indicated that delay in progress payment factor (97.7,1,1) was both the highest severity index
among delay in payment caused by owner category and overall factors. The similar, financial status of the owner factor
was the second- highest severity index in its category and overall factors ( 84. 0,2,2) . While poor communication
(47.9,11,21) factor was the least severity index which was an owner-borne failure. Regarding the delay in payment
caused by the contractor, it was found that delay in commencement factor (66.7,1,12) was the highest in its category.
While the least in its category was contractor delay in submitting documents factor (18.1,12,36). As far as delay in
payment caused by the consultant was concerned, it was found that incapable inspection ( 83. 8,1,3) and lack of
coordination of project team activities (12.9,8,41) factor were the highest and lowest factor in its category respectively.
In the category of delay in payment caused by architect, it was also found that approval of drawing for construction
(75,1,7) and discrepancies of contractor documents factor (15.6,10,40) were the highest and lowest severity index in its
category respectively. Regards to incapable of inspection, it occurred when the inspection team did not have an
adequate workforce or work schedule were overloaded. This might be the case where the responsibility area of
inspectors collided with two instantaneously opening construction projects. It was difficult for the government to
recruit a new inspector while the budget was still scrutiny. Table 3 showed that delay in payment caused by parties
involved in a construction project affected the performance of the project in terms of ability to complete the project
within time, cost and quality. The experience and skill of the parties involved in the construction project were also
affected. This was due to schedule planned had been disrupted by each party's delay in the payment procedure.
A similar report was found that delay payment leads to postponing the date of completion. It caused an extension of
 Borvorn Israngkura Na Ayudhya / Procedia Computer Science 219 (2023) 1801–1806 1805
Author name / Procedia Computer Science 00 (2022) 000–000 5

time and time insolvency [10]. It was also clearly showed from severity index number that all parties involved in road
and highway construction projects caused a delay in making the payment to the contractor. Contractors needed a high
cash flow that was moving in and out of contractor' bank account. The work progress would eventually be ceased if
cash to support construction expenses were not be reimbursed in time.

Table 4 Severity index rank

Party Delay in payment borne factor SI Rank Overall rank Effect of delay in
payment
Owner Delays in progress payment 97.7 1 1 Abandonment
Delays in making decision 80.6 4 6 Cost overrun
Delays in issue approval documents 83.1 3 4 Cost overrun
Postpone the project by owner 81.8 5 5 Arbitration
Late land handover 68.2 6 9 Time overrun
Poor communication 47.9 11 21 Time overrun
Financial status of owner 84.0 2 2 Abandonment
Delay in approving sample materials 65.0 7 11 Time overrun
Change orders during construction 49.2 10 18 Cost overrun
Failure to understand the contract agreement 53.4 9 15 Arbitration
Poor financial management 58.5 8 13 Cost overrun
Average severity index 70.0
Contractor Poor resource management 61.1 2 12 Cost overrun
Delay in commencement 66.7 1 10 Time overrun
Improper construction method 26.3 9 30 Time overrun
Poor qualification of the contractors’ technical staff 55.8 3 14 Cost overrun
Failure to understand the contract agreement 35.6 7 23 Litigation
Failure in applying for claims 48.85 5 19 Cost overrun
Conflict between contractor and other parties 52.5 4 16 Litigation
Ineffective scheduling of project 34.0 8 24 Time overrun
Rework because of errors and defects 24.8 10 31 Cost overrun
Lack of labours 18.85 11 35 Time overrun
Low level of equipment operator's skill 38.1 6 22 Time overrun
Contractor delay in submitting documents 18.1 12 36 Cost overrun
Average severity index 40.0
Poor communication by consultant with other
31.9 4 25 Time overrun
Consultant construction parties
Delay in performing inspection 68.3 2 8 Time overrun
Incapable inspectors 83.8 1 3 Time overrun
Insufficient inspectors 20.8 6 33 Time overrun
Inability of consultant to manage funds 52.3 3 17 Cost overrun
Poor estimation of project cost 26.7 5 29 Abandonment
Consultant failure in treating claims 22.1 7 32 Litigation
Lack of co-ordination of project team activities 12.9 8 41 Time overrun
Average severity index 39.8
Architect Late design works 29.4 4 27 Time overrun
Inappropriate/Mistake in design 30.2 3 26 Cost overrun
Adopted different applications 19.8 6 34 Time overrun
Techniques of design management 16.0 9 39 Time overrun
Discrepancies of contract documents 15.6 10 40 Litigation
Late response to the inquiry 27.5 5 28 Time overrun
Approval of drawing for construction 75.0 1 7 Time overrun
Staff availability on sites 48.3 2 20 Time overrun
Internal and external process of communication 17.3 8 38 Dispute
Level design of management 17.9 7 37 Time overrun
Average severity index 31.3
1806 Borvorn Israngkura Na Ayudhya / Procedia Computer Science 219 (2023) 1801–1806
6 Israngkura Na Ayudhya, B/ Procedia Computer Science 00 (2022) 000–000

Furthermore, all interviewees also agreed that financial status of owner and incapable of inspections was also
caused a delay in payment to contractors. As far as the financial status of owners was concerned, budgeting and
forecasting were also important to set targets for income and expenditure and then hold the owner accountable to those
approved projects as the year progresses. Most of large/ international loan highway construction projects were
financially stable. This was due to long budgeting and forecasting by both teams of donor and receiver. Addition, the
financial budget was constantly be monitored during the construction period. It helped to identify risk areas early
enough to rectify issues before those risks would have the momentum of performance of projects. Among of the most
appropriate solutions to mitigate the delay in payment under the normal situation are: Firstly, willingness to serve as a
public servant, such as speedy dispute on quantities of works done and inspection availability. Secondly, implementing
artificial intelligent (AI) to detects errors in making required documents and mis-match payment procedure which
helps to reduce unnecessary documents. The e-office has already introduced in the several government agencies.
However, the comptroller and the budget department still prefer hard copy to examine the documents. A long waiting
of each given order and several changing of orders cause incur further expenses to the contractor. A restructuring
payment procedure can be neither thrust on the organization nor implemented without the full support of head of
government agencies and stakeholders. Thirdly, refraining the usage of the clause " pay when paid" in a contract
agreement.

5. Conclusions

This paper identified causes of delay in payment to contractors which involved owner, consultant, contractor
and architect activities. It was found that the delay in activities of making payment borne by the owner was the main
cause of delay in payment to the contractor. Especially, delays in progress payment and financial status of the owner
factor were ranked as first and second highest severity index. While activity borne by consultant caused a delay in the
process of making payment to a contractor was incapable inspectors which were ranked as the third highest severity
index.

References

[1] Remon,F.A. Asmaa, A. and Abdel. H. (2016). “Exploring delay causes of road construction projects in Egypt”. Alexandria Engineering Journal,
55(2): 1515-1539.
[2] Serdar, D. and Hosseini, R. (2019) “Causes of delays on construction projects: a comprehensive list”, International Journal of Managing Projects
in Business, (in press)
[3] Agyekum-Mensah, G. and Knight. A.D. (2017). “The professionals’ perspective on the causes of project delay in the construction industry”,
Engineering, Construction and Architectural Management 24(5): 828-841.
[4] Ahmed, S. Alaa, I. and Neil, E. (2016). “Time Delay and Cost Overrun in Qatari Public Construction Projects”, Creative Construction Conference
2016, CCC 2016, 25-28 June 2016, Procedia Engineering, 164 (2016): 368 – 375.
[5] Jiang, A. (2012) “Negotiating construction contracts through practical cash flow planning and analysis model”. International Journal of
Construction Management 12(2): 23-33
[6] Kazaz, A. Ulubeyli, S. and Tuncbilekli, N.A. (2012). “Causes of delays in construction projects in Turkey”. Journal of Civil Engineering and
Management, 18(3): 426-435.
[7] Ayudhya, B. I. N. (2012). Factors causing delay in payment of Residential projects in Thailand, FIG Working Week 2012, Knowing to manage
the territory, protect the environment, evaluate the cultural heritage Rome, Italy, 6 – 10 May, 1 – 11.
[8] Hasmori, M.F., Ismail, I., and Said, I. (2012). Issues of late and non – payment among contractors in Malaysia. 3rd International conference on
Business and Economic research (3rd ICBER 2012) proceeding, 12 - 13 March 2012. Golden Flower Hotel, Bandung, Indonesia, 82 - 93.
[9] Mamoon, M,A (2016). “Delays caused by project consultants and designers in construction projects, International Journal of Structural and Civil
Engineering Research, 5(2): 102-107.
[10] Ansah, S. K. (2011). “Causes and effects of delayed payments by clients on construction projects in Ghana”. Journal of Construction Project
Management and Innovation, 1: 27 – 45.