NCC Raises Alarm Over Delayed Contractor Payments

The National Council for Construction (NCC) has expressed concern over the continued delay and prolonged disbursement of payments to contractors, warning that the situation is negatively affecting the delivery of infrastructure projects across the country.

Speaking during an engagement with stakeholders, NCC Director of Registration and Regulation Chance Kaonga said the delays are undermining the smooth execution of works, particularly among local contractors who often lack access to capital to absorb payment gaps.

“These payment delays are hampering operations for contractors nationwide. Many small and medium-scale contractors are struggling to meet their obligations due to late payments, which in turn affects project timelines and delivery standards,” Mr. Kaonga said.

He explained that delayed payments disrupt planning, reduce contractor confidence, and can lead to project abandonment, especially in cases where contractors rely solely on project funds to manage labor, procure materials, and maintain equipment.

Despite these challenges, Mr. Kaonga noted some improvements in the sector, particularly with the increased allocation and usage of the Constituency Development Fund (CDF). He said the CDF has created a more predictable payment system that is benefiting contractors engaged at community level.

“We have seen that with the increased CDF, the government is less likely to accumulate additional debt in the construction sector. Payments under the CDF are generally more timely and readily available, which is a positive shift,” he said.

Mr. Kaonga commended the government’s continued commitment to empowering local contractors through decentralised project implementation. He said the timely disbursement of CDF funds has helped many small contractors improve cash flow and deliver projects more efficiently.

However, he called for a broader reform across the public construction sector to ensure that all government-funded projects follow the same model of financial discipline and prompt payment.

“What is working under the CDF model should be replicated across all government institutions to improve contractor performance and infrastructure quality,” Mr. Kaonga said.

The NCC has continued to advocate for a stable and well-regulated construction environment, including timely contract awards, equitable access to projects, and reliable financing systems.

Mr. Kaonga concluded by urging implementing agencies to honor contractual payment timelines to strengthen contractor performance and ensure the sustainable development of Zambia’s infrastructure sector.