IOSR Journal of Mechanical and Civil Engineering (IOSR-JMCE) e-ISSN: 2278-1684,p-ISSN: 2320-334X, Volume 20, Issue 2 Ser. I (Mar. – Apr. 2023), PP 01-06 www.iosrjournals.org DOI: 10.9790/1684-2002010106 www.iosrjournals.org 1 | Page Effect of Payment delay on Time performance of Construction Projects in Edo State, Nigeria Ayobami Oluwaseun Idowu 1* , Victor Imhonikhe Aligamhe 2 1 (Quantity Surveying Department, Auchi Polytechnic Auchi Edo State Nigeria) 2 (Quantity Surveying Department, Auchi Polytechnic Auchi Edo State Nigeria) Abstract: Background: The construction industry in recent times has been characterised by time overrun which are mostly caused as a result of payment delay. The research work assessed the effect of payment delay on time performance in the construction industry with focus on the relationship between payment delay and time overrun. Materials and Methods: Data were source using case study data from 20 selected projects in Edo state with interview with key professionals on those projects. A total of 12 professionals were interviewed to identify the major causes of payment delay on the projects. Data were analysed using percentile and linear regression was used to show the relationship between payment delay and time overrun. Results: . The research identified the major causes of payment delay as: slow coordination and seeking of approval from concerned authorities, late preparation of interim valuation and inflation. It further reveals that payment delay had significant effect on payment delay as it contributed to 43% variance which indicates that payment delay has a high significant effect on time performance of construction projects. Conclusion:in order to improve time performance of construction projects, issues regarding payment needs to be taken seriously so It is therefore recommended that adequate planning and better feasibility studies should be carried out before commencement of the construction project as his will help reduce the occurrence of payment delay as the client is fully prepared for the project. Key Word: Construction Projects; Payment Delay; performance; Time overrun and Time Performance -------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 25-02-2023 Date of Acceptance: 10-03-2023 -------------------------------------------------------------------------------------------------------------------------------------- I. Introduction In order to maintain a consistent cash flow, contractors occasionally ask payment for work completed. Delays in honoring payment certificates have resulted in missed delivery milestones for construction projects, and in certain situations, they have led to contract determination delays (Fatoye, 2012). According to Ansah (2011), a significant cause for concern is the delay in paying clients for work completed on building projects. It causes contractors to experience severe cash flow issues, which can have a disastrous impact farther along the contractual payment chain. According to Fatoye (2012), the majority of construction projects are finished in accordance with the clients' specifications, but rarely within the anticipated completion period due to delays, which are typically brought on by payment issues. It is not uncommon to find a contractor or sub-contractor who has not been paid what is due to him threatening to suspend work under the contract until the balance due to him is paid in full. In recent years, the construction industry has been widely acknowledged to be plagued with payment delays and losses (Ye and Rahman, 2010). Cash flow issues brought on by delayed payments are a major factor in construction delays and project termination (Fugar and Agyakwah-Baah, 2010; Ayodele and Alabi, 2011). Ye and Rahman (2010) found that when a business's cash flow is delayed, its net cash flow turns negative. When this occurs, the contractor would need urgent finance to make up the cash shortfall (Idowu et al. 2022). Due to the fact that construction projects frequently require significant upfront investments and take a long time to complete, payment is regarded as the industry's lifeblood (Judi and Rasheed, 2010). Nigeria has highlighted the issue of contractors receiving interim payments late or not at all (Ayodele and Alabi, 2011). According to Fatoye (2012), late payments appear to be common in Nigeria because the majority of construction clients are public bodies and the projects are financed with poorly executed government budgets.Shebob, Dawood and Xu (2011) opined that payment delay of construction project has significant financial impact on all parties involved in the project thereby affecting the time performance of the Project. This paper looked at the impact of payment delay on time performance of construction project by drawing up a relationship between payment delay and time overrun using some selected projects.