From Problem to Solution: Corrective actions for a More Efficient Payment System in Iran's Construction Industry

The Iranian construction industry grapples with persistent challenges in payment efficiency and compensation practices, impacting various stakeholders. This paper synthesizes key literature and industry insights concerning payment and compensation systems, and the role of Human Resource Management (HRM) compensation and payment subsystem in the construction industry. Issues pertaining to delayed or inadequate payments, defensive HR strategies, transition of HRM practices, reward structures, and supervising engineer compensation are explored. Furthermore, the current payment systems for supervising engineers are dissected, critically examining the TCEO and Tec.MPOrg methods, along with the associated challenges and problems. The impact of inefficient payment systems on the construction industry is underscored, highlighting the state of the economy, cultural factors, and their relevance to the prevalence of improper payments. Additionally, insights into best practices from global construction industries are provided.Serving as a comprehensive resource, this paper aims to inform stakeholders, policymakers, and industry practitioners about the challenges and potential solutions within the Iranian construction industry’s payment and compensation systems, advocating for collaborative efforts to address the identified concerns and foster a more efficient and equitable industry landscape.

From Problem to Solution: Corrective actions for a More Efficient Payment System in Iran's Construction Industry Keywords:

HRM , Construction Industry , Civil Engineers Supervisor , Compensation