Effects Of Payment Woes In The Construction Industry

745 Words 3 Pages
Payment woes is refer to the payment problems that often be an issue in construction industry which mainly involves contractors. Frequently, payment woes is a common cause of arguments in the construction industry all over the world. This issue on payment woes is raising problems in construction industry and getting worst. It has reached to the point where may affect construction industry’s reputation. This payment woes issue is related with ethics practices as whether the contractors problem in paying to the suppliers or commonly clients fail to pay contractors due to financial problem. Malaysian contractors have to face this problem as it involves money and gives effect to the image of construction industry. Previous research from Che Munaaim …show more content…
Malaysia is not exceptional in this issue due to the slow-down of economy growth. Contractors in the industry live in desperation to survive thus they do not think much to do corruption in the industry. Works Minister Datuk Seri Fadillah Yusof said that, the construction industry grew at the rate of 14.3 per cent until the middle of this year with projects worth RM69 billion carried out until September (The Borneo Post, 2014). Construction industry’s rate has increased rapidly each year and this shows the statistics on economy growth in Malaysia. He said, they have signed a memorandum of cooperation (MoC) on governance, integrity and prevention of corruption with construction industry players. Primarily, the memorandum is due to encounter corruption issue in the industry. The memorandum associated with Master Builders Association Malaysia, Real Estate and Housing Developers’ Association Malaysia, the Association of Consulting Engineers Malaysia, the Malaysian Institute of Architects, the Institution of Engineers Malaysia, the Royal Institution of Surveyors Malaysia, the Malay Contractors Association of Malaysia, and the Malaysian Indian Contractors …show more content…
Corruption is included under ethical issues because it gives negative effects in construction industry and needs major concern about this issue. Thus, approaches should be enforced in implementation to combat this issue especially among contractors that deal with clients. According to Malaysia Anti-Corruption Commission (MACC) statistics in year 2008 to 2011,there are 1793 numbers of complaints on receiving fraud and corruption in construction (Nordin, Takim & Nawawi, 2013). A large numbers of complaints have been received between 2008 to 2011, how about on this year? What will happen if there is no actions taken by the government? Hence, Malaysian government should enacts act on corruption not only in construction industry but in all

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