Examining the effectiveness of payment systems to the productivity and efficiency of sub-contractors in the construction industry.

Abstract

This study examined the effectiveness of payment systems to the productivity and efficiency of sub-contractors in the construction industry in Uganda. The construction industry in Uganda is characterized by numerous payment systems that main-contractors use to pay sub-contractors. Some systems are very advantageous in improving productivity and efficiency of sub-contractors, while others largely negatively affect the productivity and efficiency of the sub-contractors. The difference in usage of these payment systems by different main contractors is as a result of the contractual agreement between main contractors and the subs, the scope and complexity of the project, the nature of work among others. Consequently, the use of these systems has a great effect on the productivity and efficiency of sub-contractors, but the main concern is how much do these systems affect the productivity and efficiency of sub-contractors both positively and negatively. This study therefore aimed at examining the effectiveness of payment systems to the productivity and efficiency of sub-contractors in the Construction Industry in Uganda and thus investigating the relationship each payment system has with the productivity and efficiency of sub-contractors in the Construction Industry in Uganda. The study adopted quantitative and qualitative approaches in data collection and analysis. The sampling method was purposive, cluster and systematic random sampling. The purposive method was used to select key informants mainly the contractors and subcontractors working on different projects in Kampala city. A cluster method was used to geographically group the companies where the researcher chose Makindye and Kawempe divisions. A simple random sampling method was used to select the general respondents to the questionnaires and interviews. The study involved the use of questionnaires and interviews to collect the data required to answer the objective questions of this research. Questionnaires were administered to everyone in the particular companies visited, also different sites of these companies that were on-going were visited where interviews were used to interact one on one with some of the sub-contractors and other personnel that participate in the construction process of a project. The information used in this study is both primary and secondary information.