The COVID-19 pandemic appears to have made payment delays to contractors much worse, according to a report from construction software firm Levelset.
Just 9% of companies always get paid on time, a decline of 60% from last year, says Levelset’s 2021 Construction Cash Flow & Payment Report. Just one construction contractor in 10 always gets paid in full, a 75% drop from before the pandemic.
GCs typically fare better than subs. General contractors are four times more likely than subcontractors to get paid within 30 days, and 50% more likely to get paid in full. One in five subcontractors and suppliers often have to wait more than 60 days for payment.
A full 56% of subcontractors wait more than 60 days to collect retained funds, compared to just 16% of general contractors.
Related Stories
Codes and Standards | Jun 25, 2018
Integrated Project Delivery guide offered by Pankow Foundation
An Action Guide for Leaders offers answers to critical IPD questions.
Codes and Standards | Jun 21, 2018
New app said to automate code compliance
Startup offers plug-in that scans 3D models.
Codes and Standards | Jun 20, 2018
Home values and local tax revenues at risk from high tide flooding, scientists group says
Analysis of property data identifies communities prone to frequent flooding.
Codes and Standards | Jun 19, 2018
Structural engineered wood products exempt from new EPA formaldehyde ruling
Exempt products include structural plywood, oriented strand board (OSB).
Codes and Standards | Jun 18, 2018
Seattle City Council repeals controversial new per-worker tax on large employers
Measure was aimed at raising $50 million for homeless services, affordable housing.
Codes and Standards | Jun 14, 2018
Hardscape from development makes ‘1,000-year’ flood in Maryland worse
Impermeable concrete made it easier for water to overwhelm drainage system.
Codes and Standards | Jun 13, 2018
United States Resiliency Council announces support for Calif. earthquake resiliency bill
Measure would help cities identify structures that could fail in major quake.
Codes and Standards | Jun 12, 2018
Congestion pricing for cars is effective in reducing traffic, but a difficult sell
After three years, traffic congestion declined by 30% in London.
Codes and Standards | Jun 11, 2018
First RFP requiring modular construction on New York City housing project issued
Part of Housing 2.0 modular construction initiative.
Codes and Standards | Jun 6, 2018
Buffalo, N.Y., contractor exec pleads guilty to fraud for bid rigging on $750 million contract
LPCiminelli stops functioning as GC in fallout from the case.