Study on Payment Problems in Private Construction Industry in Karnataka State: Analysis of Client based Issues

Construction industry is one of the major industries responsible for the overall development of the economy and society. However, construction industry face lots of challenges including manpower, materials, machines, minute and money. History of construction industry has witnessed a number of payment issues and finance related issues which has hampered many of the construction projects. Construction industry is dependent on local, regional, national and sometimes international finance market and stability. Payment problems in the construction industry may result due to the financial instability of the client and also due to unforeseen issues with the contractor. Payment problem in construction is a common phenomenon which leads to legal disputes. Clints play major role in the construction projects and their decision will be key for successful completion of project. Clients face unique payment challenges which impact their financial stability and also projection success. In this research paper the reasons for the delay in payment is analysed and the reasons are compared to each other. The findings of this research work will help the clients in the Karnataka state to mitigate or control the irregularities in the future construction works. Generally, construction projects are very large in scope ranging from Building projects, Civil engineering projects to Industrial engineering projects, but the causes of delay on these contracts remains virtually the same although it may be more in terms of cost or time implication in some than the other due to lack of complete certification and expertise. The study is focused on building construction projects in the state of Karnataka. Research is conducted through literature reviews and questionnaire surveys. In this research, clients are contacted get the inputs on delay in the construction project and delay in payment procedure by considering issues related to both client and contractor.