A Cause and Effect of a Nonpayment Model Based on the DEMATEL Algorithm
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15, Issue 1
Abstract
Payment is regarded to be the construction industry’s lifeblood. Late and nonpayment concerns have plagued the construction industry. Previous research has only looked at the cause and effect of payment problems in the construction industry, not the link between the variables. The purpose of this study is to look at the causes and repercussions of nonpayment, as well as their interactions. The study’s list of causes and consequences was compiled from a literature review, and nine were retrieved. The Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique was used to create a causal relationship between the causes and effects of nonpayment so they may be understood and intervened in. Paymaster’s inadequate financial management (C1), local culture and attitude (C2), document error (C6), contractual provision (C8), and disagreement on the valuation of work done (C9) are the major cause factors, according to the data collected from 13 respondents. The key repercussions, on the other hand, include cash flow problem (E2), bankruptcy and liquidation (E4), project abandonment (E5), delay (E7), and disputes (E8). The conclusions of this study can assist major players in the construction sector, as well as the government, in establishing a strategy to effectively address the nonpayment problem in the industry.
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Data Availability Statement
Some or all data, models, or code that support the findings of this study are available from the corresponding author upon reasonable request. The available data include:
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Survey questionnaires, and
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Analyzed data in Microsoft Excel format.
Acknowledgments
The authors would like to thank and acknowledge Universiti Malaysia Pahang for supporting this study through RDU200307.
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Published In
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15 • Issue 1 • February 2023
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© 2022 American Society of Civil Engineers.
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Received: Apr 8, 2022
Accepted: Aug 18, 2022
Published online: Nov 11, 2022
Published in print: Feb 1, 2023
Discussion open until: Apr 11, 2023
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