Primary Author: Dr. Jay Palmos CFCC
Audience Focus: Intermediate
Application Type: Research
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA
Abstract: The role and importance of the construction sector varies from one country to another. In countries with established infrastructure and urban areas the sector plays a far less significant role in the national economy than in developing countries. This study investigates the macro-economic impact of payment-related construction delays in nine emerging markets. It is suggested that those countries which have systematic and pervasive construction delays due to payment-related issues will necessarily suffer in proportion to the percentage of GDP made up by the construction industry economic cycle. It is recommended that those countries where construction sector comprises a significant proportion of GDP and who report payment related issues as the most frequent cause of construction delay should adopt a Security of Payment style legislation.
Audience Focus: Intermediate
Application Type: Research
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA
Abstract: The role and importance of the construction sector varies from one country to another. In countries with established infrastructure and urban areas the sector plays a far less significant role in the national economy than in developing countries. This study investigates the macro-economic impact of payment-related construction delays in nine emerging markets. It is suggested that those countries which have systematic and pervasive construction delays due to payment-related issues will necessarily suffer in proportion to the percentage of GDP made up by the construction industry economic cycle. It is recommended that those countries where construction sector comprises a significant proportion of GDP and who report payment related issues as the most frequent cause of construction delay should adopt a Security of Payment style legislation.