The construction industry plays a very important role in generating wealth and improving the quality of life of a nation. Hence, it is vital to ensure that construction projects are effectively and efficiently implemented. In construction projects, the payment process is a crucial element.However, problems of cashflow and payment delays to contractors can severely affect the implementation and timely delivery of construction projects. In view of this, this study sought to identify the causes of payment delay, their impacts and remedial solutions by taking North-East Amhara region construction projects.The objectives of the study are achieved through three approaches; the first one is a literature review focusing on three main elements; causes of payment delay, impacts of payment delay and solutions to mitigate payment delays. The second one is the design of a questionnaire survey to the representatives of three target groups (employer, contractors and consultants) who are believed to have sufficient expertise on specific projects under study in their respective construction sites. The last one is to conduct interviews of senior professionals in the industry. The population for the research was public water construction projects in the North-East Amhara region constructed and completed from 2012 to 2015 EC. Questionnaires were designed and distributed using purposive sampling of fifty-one individuals representing contractors, consultants and clients. In total, forty-two completed questionnaires were returned and thirty were valid responses. The data from the questionnaires were analyzed using Analytical Hierarchy Process. Results of the survey indicated that the problem of delayed payment was mainly contributed by the employer. Contractor’s failure to do work based on bill of quantities &specification set on contract agreements, lack of technical &managerial skill of staff of consultants and failure to follow to raise funds for financial sources &lack of adequate funding during the course of the project of client were top ranked causes of delay. The impacts of delayed payment were creating cashflow problems to contractors, bad image of clients and impacts on access to basic social services to the public. The top three effective solutions to mitigate impacts of payment delay in North-East Amhara region construction were; employersshall work within stipulated budget, contractors shall submit timely& accurate invoices with complete documents and improve coordination by all contracting parties. The study recommends that the client, consultants and contractors should work as a team and consider the projects as their own to avoid bottlenecks encountered in constructing projects. Keywords: Cause, Construction, Contractor, Consultant, Client, Impact, Payment, Projects, Public, Remedies,Water.