Late and non-payment issues towards subcontractor in infrastructure works

The late and non-payment issues towards subcontractors still remain the essential issues in Malaysia construction industry. The issues occur not only on building projects but also in infrastructure projects.Therefore, the purpose of this research is to identify the possible strategies to mitigate late and non-payment issues towards subcontractors in infrastructure works. Methodology serves this research by applying questionnaire form which is distributed to the subcontractors grade G7 in Klang Valley. Data gained in this research was analyzed through mean method and standard deviation method. Causes that lead to payment delays have been identified which are incorrect claims that were submitted, reliance on client payments through the 'Pay when Paid' clause, and financial concerns such as withholding payments and cash flow issues were among the causes that contributed to this situation. These delays had significant effects, including the delivery of work of a low quality by subcontractors, the abandonment of projects, an increase in construction costs, and delays in the completion of projects as a result of the financial burden that was placed on subcontractors. It was suggested in the thesis that a number of potential solutions could be implemented in order to address these concerns.These solutions included the tightening of contractual clauses, the implementation of legislative and regulatory measures such as the CIPAA 2012, the right to receive progress payments, the issuance of promissory notes, the slowing down of the construction process, and the suspension of the construction process. The research successfully achieved its objective of identifying the causes of late and non-payment, determining the effects and recommending possible strategies to mitigate these issues.