May i know the real consequences of late interim payment or progress payment and is the percentage of projects delays because of this factor are increasing by each year in Malaysia?
Some contractors obtain bank loan to run their business. If the payment is delayed, they may not be able to make repayment to bank. Also they find it difficult to pay their employees, suppliers and sub-contractors. In good contract administration, payment should be made within a month. Quality assurance and control should be in place to obtain desired products/outputs.