An analysis on cause, impact and strategies Of payment among contractors in Malaysian construction industry

This study aimed to identify causes, impact, reaction, and solutions of payment issue in the Malaysian construction industry. This study employed explanatory mixed methodological approach to collect data through questionnaires, focus group and interviews. The purposive sampling used consists of selected contractors listed with CIDB. Descriptive statistics and factor analysis were used. The finding reveals that payment issue arises due to poor financial management, and the attitude of local society which in turn formed financial hardship to the contractors. This study recommends that paymaster provides security bond, implementing the policy of business license deregistration and the role of financial institution. This study also denotes on the importance of educating the citizen on Malaysia construction industry