Effects of late payment to Industrialized Building Systems (IBS) contractors

Industrialized Building System (IBS) is the term coined by the industry and government in Malaysia to represent the adoption of construction industrialization and the use of prefabrication of components in building construction. The IBS project requires upfront payment as compared with conventional project. The issue of the late payment was disturbing the implementation of IBS construction industry to go smoothly. Therefore, this study aims to identify the payment issue of Industrialized Building System (IBS) in Malaysian construction industry and their effect to contractors in handling IBS projects. This study employs quantitative approach in collecting data to collect information about the payment issue of Industrialized Building System (IBS) which involved contractors and the clients. This study also is expected to help the contractors to maintain their business with especially at the early stages of construction which involved huge capital investment for the IBS project. The outcome of this study will encourage construction industry especially IBS contractor to have better understanding on financial management.