Assessing the impact of the traits of payment delay causes on subcontractor's business performance in construction projects: a case study in Vietnam

Payment delays are a big problem for subcontractors. Although it is necessary and important to identify the causes of the payment delays to subcontractors, very few studies have attempted to do so. This study aims to assess the impact of the traits of payment delay causes on subcontractor's business performance. The questionnaire surveys are performed to collect data from practitioners. The study identifies twenty payment delay causes to subcontractors and eight criteria for evaluating the subcontractor's business performance. The study also identifies four indicators of the traits of payment delay causes, namely parties' lack of commitment to agreements, contractual problems, parties' lack of experience and competence, and complex processes and policy changes. The result of the tructural equation modeling confirms a significant impact of the traits of payment delay causes on the subcontractor's business performance. The study bridges knowledge gaps about payment delays in construction. The findings of the study would be helpful for parties to limit payment delays, especially for the subcontractors to improve their business performance.