Abstract

Financial issues in construction projects lead to serious consequences that may retard the development of a project and influence the overall economical condition of a country. This paper addresses the issues of financial-related delays in construction projects. Aiming to determine the major causes of financial-related problems leading to construction delay and to identify possible solutions in mitigating financial-related construction delays, data was collected though a questionnaire survey and a follow-up interview survey. Responses were obtained from a combination of clients, contractors, consultants and bankers in the questionnaire survey. Contractors’ unstable financial background, client’s poor financial and business management, difficulties in getting loan from financiers, and inflation were identified as the most significant causes. Findings indicate clients play the most important role in reducing the impact of financial problems towards project delay. Recommendations in mitigating financial-related delays are provided accordingly.

Key words: Construction delay, financial-related delay, construction industry, project monitoring, civil engineering.