A new survey suggests that slowest construction could be an important indicator of a pending recession.
The study of 250 general contractors and subcontractors found that 73% can know what will be based on the largest economic climate on the speed of projects.
59% more worries that the current fare crisis will have a direct impact on their projects and businesses in general.
Half said that they often have to fight to prevent appointments for their projects.
Three out of five contractors (58%) are so confident in the relationship between industry and the largest economic climate, they believe that having faster payment systems in their place would “guarantee” the reduced inflationary pressure in the construction industry.
Completely built and carried out by Talker Research, the study found that it takes 15 days on average for contractors and subcontractors to receive payment after turnover of their work.
However, seven out of ten have experienced delays in their payments.
Those who have had delays of payment said that about 10% exceeded 30 days.
And many usually go to their business savings (45%), business credit lines (45%) and credit cards (44%) to cover expenses while waiting for payments.
As a result of the payment delays, 72% said they had to adjust the amounts of the offer up to 8% on average in order to compensate.
Sixty-four percent had to submit their prey due to delays.
And the average contractor has had to stop all work on particular projects at least once last year due to delays.
A third (35%) also had the projects canceled completely or were delayed very much due to the lack of finance of the developers.
“Payment delays are not just administrative evils; they add significant hidden costs to construction, especially with tensed budgets where the least pencil projects,” says Chase Gilbert, General Manager of Build.
“If projects are stopped, your money does not work for you; it works against you. Slowly paying developers cost more than they can realize, whether they see it or not.”
The survey found that many contractors have taken various measures to manage their cash flow and costs in the middle of slow payment cycles.
These measures include an increase in credit use (41%), negotiated longer terms with suppliers (33%) and reduced project tender (24%).
Retained payments can be so severe of a problem, 76% would offer discounts on offers if a faster payment was guaranteed, an average of 5%.
Six out of ten said that a developer’s reputation for specific payments has a significant or significant impact on their decision to offer a project.
According to their opinions, many contractors said that the largest contributors to payment delays come from contracts disputes (23%), cash flow management and prioritization (21%), banking proceedings (18%), administrative Holzades (14%) and manual or paper -based processes (14%).
More than half (58%) believe that technology plays an important or significant role in ensuring faster payments in the construction industry.
Four out of five (82%) said they would willingly accept the receipt of digital payments, if it meant getting the money faster.
“Payments delayed not only frustrate contractors; they create a wavy effect that increases costs, unloads schedules and eroding margins throughout the industry,” Gilbert said.
“Modernizing payment workflows is not just speeding; it is about protecting profitability, reducing overload and accelerating capital revenue. When capital moves effectively, everyone benefits from developers to communities.”
Survey Methodology:
Talker Research surveyed 250 North -Americans’ general contractors and subcontractors; The survey was commissioned by the construction and administration and the realization of Talker Research between April 2 and 10, 2025.
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