As material shortages continue to grip both the offsite and onsite construction industries, many contractors are finding simply getting paid for work completed is getting tougher.
A new survey from Rabbet, a construction finance software company shows some interesting stats.
Key findings include:
- 72 percent of subcontractors would offer a discount in exchange for payments within 30 days
- 67 percent of subcontractors report choosing not to bid on a project due to a general contractor or owner’s reputation of slow payments
- 35 percent of all general contractors report that work has been delayed or stopped due to a delay in payments to crew members in the last 12 months
General contractors most frequently reported that the three highest impacts on their cash flows in 2021 were increased material cost (76 percent), longer material lead times (47 percent), and COVID restrictions (47 percent).
When asked what would change if respondents could change one component of their payments process, many general contractors wrote in the need for automatic, instant, or direct payments.
CLICK HERE to read the entire Business Wire article
Related Articles:
- Having A Well Known Investor Doesn’t Mean You’ll Make A Profit
- 10 Profit Sucking Things Plaguing New Home Builders
- A Builder’s Profit Has Many Layers
Gary Fleisher is Editor in Chief of Modular Home Source. Email at [email protected]
To begin receiving my twice-weekly newsletter with offsite and modular construction news, views, polls and videos, simply subscribe to it in the form below.
