Interim Payment Challenges in the Construction Industry: A Systematic Review

Interim payment challenges remain a major barrier to effective project delivery, prompting this systematic review to examine the financial, contractual, procedural, and technological factors influencing payment performance in the construction sector. The literature highlights widespread issues such as late payments, underpayments, valuation disputes, and insufficient regulatory enforcement, all of which disrupt cash-flow stability and contribute to delays, cost overruns, and strained stakeholder relationships. The study investigates how these factors interact and identifies gaps in current industry practices. A systematic review methodology was adopted, analysing abstracts and findings from SCOPUS and Web of Science sources. From an initial pool of studies, a final sample of 131 articles was selected based on relevance to interim payments, payment behaviours, contract administration, cash-flow management, and emerging technological solutions. The review categorised findings into five main themes: delay and performance issues, cash-flow and financial constraints, contractual and dispute-related challenges, risk factors affecting payment, and digital solutions for payment automation. Results indicate that administrative inefficiencies, subjective valuation processes, inadequate dispute-resolution mechanisms, and behavioural mistrust are key contributors to payment delays. Conversely, emerging technologies particularly blockchain and smart contracts show strong potential to automate certification, improve transparency, and reduce disputes. The review underscores the importance of establishing consistent payment practices, enhancing communication mechanisms, and strengthening contract enforcement to improve payment reliability. This study provides an integrated perspective on payment challenges and highlights the need for further empirical validation through industry-wide case studies, stakeholder surveys, and pilot implementations of digital payment frameworks. The findings contribute to ongoing discussions on improving payment governance and advancing digital transformation in construction payment administration.

interim payment, challenges, construction industry, delay payment, late payment

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