Factors Influencing the Effectiveness of Advance Payment Guarantees (APG) in Construction Projects in Southeastern Nigeria

The study examined the factors affecting the effectiveness of Advance Payment Guarantees (APGs) in construction projects within Southeastern Nigeria, a region characterized by rapid urbanization but persistent challenges in contractor reliability, weak institutional enforcement, and delayed project delivery. Despite APGs being essential for safeguarding advance payments, their performance remains fragile due to inconsistent contractor evaluations and limited technological integration. A mixed-method research design was employed, involving 500 respondents across Enugu, Anambra, Imo, Abia, and Ebonyi States. Quantitative data were analyzed using descriptive statistics, while qualitative insights provided deeper context. Figure 1 showed that contractor performance history (mean = 4.3) and financial capacity (mean = 4.1) were the strongest predictors of APG effectiveness. Conversely, weak regulatory oversight and delayed APG processing recorded the lowest scores. Findings indicate that APG effectiveness depends on a combination of reliable contractors, strong regulatory frameworks, and transparent verification systems. The study recommends establishing a centralized contractor evaluation database, strengthening regulatory alignment across states, and adopting digital verification tools such as blockchain to improve transparency and processing speed.