Strategies for Mitigating Challenges of Delayed Payments in the Implementation of Government Road Construction Projects in Moshi Municipality, Tanzania

Abstract

This study aimed to explore the strategies for mitigating challenges of delayed payments in implementation of government road construction projects. Both qualitative and quantitative designs were used to explore challenges and strategies road construction industry could use to mitigate the problem of delayed payments. Both probability and non-probability sampling techniques were used. Data was collected from 40 respondents comprised of consultants, experts and contractors. Questionnaires were the main tool used to collect data and Relative Importance Index (RII) was used to analyse the subject variables. Findings revealed that proper financial planning, contractor shall not commence project until funds become available and should be clearly stated in contracts before signing it, proper use of funds allocated for the project, demanding payment bond, holding project's funds in an escrow account, establishing prompt payment act, charging of penalties on delayed payment and entering into joint venture are innovative strategies to mitigate the challenges of delayed payments. The findings also indicate that there is significant relationship between such strategies for mitigating the challenges of delayed payments and successful implementation of government road construction projects. The study concluded that to the great extent such innovative strategies will lead to successful implementation of government road construction projects. The study recommends that there is the need to promote wider uses of the payment strategies so that to guarantee successful completion of projects.