Payment delays hit 86 per cent of contractors

09 February 2009

Delayed payments for completed work is now affecting 86 per cent of contractors working in the GCC region, according to a survey of industry professionals.

Some 86 per cent of contractors claim that payments are taking longer than in the same period 12 months ago, with 84 per cent saying that late payments range between one and six months.

The figures are from a survey of senior industry figures attending MEED’s Arabian World Construction Summit (AWCS) 2009 in Abu Dhabi.

Over a third of those questioned believed that government intervention, in the form of increased project spending, an injection of sovereign wealth funds into projects or encouraging banks to offer project finance was imperative if the market was to recover.

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