THE INFLUENCES OF THE FINANCING OF CONSTRUCTION CONTRACTS ON THE METHOD OF PAYMENT

INCIDENCIAS EN LA FORMA DE PAGO DE LA FINANCIACION DE CONTRATOS DE CONSTRUCCION

Developers and building contractors are often unhappy with the handling of some projects. Some cannot understand delays in the execution of contracts and others are short of funds to cover their expenses, even in the case of contracts with acceptable financial return. This dissatisfaction is especially noticeable in short term contracts. Leaving apart technical aspects of construction, the author investigates the deficiencies in financing, from which these problems arise. The most influential factors in funding of contracts are prompt payment and the number of instalments to be paid. The increase of financing needs due to a decrease of cashable invoices explains the unfavourable conditions in which small contractors find themselves. Large firms specializing in major projects could execute them without receiving any additional financing, provided that the value of the work done is paid in three or five instalments. (TRRL)

• Corporate Authors:

  Sociedad Colombiana de Ingenieros

  Carrera 4, No. 10-41
  Bogota,   Colombia 
• Authors:
  • Diaz, G
• Publication Date: 1975-7-9

Language

• Spanish

Media Info

• Features: Figures;
• Pagination: p. 38-46
• Serial:
  • Anales de Ingenieria
  • Volume: 83
  • Issue Number: 787
  • Publisher: Sociedad Colombiana de Ingenieros

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Construction; Contractors; Contracts; Costs; Economics; Financing; Investments; Payment; Time duration
• Uncontrolled Terms: Short term
• ITRD Terms: 3655: Construction; 146: Contract; 136: Contractor; 224: Cost; 226: Cost benefit analysis; 255: Economics; 244: Financing; 227: Investment; 272: Payment
• Subject Areas: Administration and Management; Construction; Design; Economics; Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 00309242
• Record Type: Publication
• Source Agency: Transport and Road Research Laboratory (TRRL)
• Files: ITRD, TRIS
• Created Date: Jun 26 1980 12:00AM