An Investigation of the Impact of Payment Delays in Bahrain's Private Construction Sector

This study addresses the critical problem of payment delays in the Bahraini private construction sector as the problem poses a serious threat to the financial stability of firms. The aim of this study is to establish the causes and consequences of payment delays and propose solutions. Mixed-method approach was utilized, questionnaires were sent to engineering specialists and analyzed using Relative Importance Index, A review of literature on international standards and local laws was done. Results show that the leading cause of delays in payments is changes in scope of work by the client, followed by financial inadequacies of the owners and contractors. The study recommends the use of a proactive contractual framework which will include local law and international standards for financial accountability in the private contracts to make firms proactive to control and reduce the risk of delay or non-payment.