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
| Nov 9, 2012
Higher bar on LEED may not be harder to reach
The U.S. Green Building Council expects to substantially revise LEED next year, requiring builders beginning in 2015 to take new and more-detailed steps to get buildings certified.
| Nov 9, 2012
CSI’s sustainability practice group offers webinar on EPA's WaterSense Program
The Construction Specification Institute’s sustainability practice group is offering a webinar Nov. 20 on EPA’s WaterSense Program, featuring Lynn Gilleland, drinking water specialist with EPA’s New England office.
| Nov 9, 2012
Mayor in Calif. wants to expedite permits for $1B worth of projects
The mayor of San Jose, Calif., plans to issue new construction permits worth an estimated $1 billion in the next six months to spur job creation and create revenue for the city.
| Nov 9, 2012
Jury awards N.Y. roofer $2 million for injuries after construction site fall
A roofing worker from Cortland County, N.Y., has been awarded $2 million in damages due to the injuries he sustained from a 60-foot fall at a dormitory construction site.
| Oct 31, 2012
Investigators look into crane severely damaged by Sandy in Manhattan
Investigators are examining a construction crane collapse atop a $1.5 billion luxury high-rise in midtown Manhattan due to high winds during Hurricane Sandy.
| Oct 31, 2012
Construction error suspected in Miami-Dade College garage collapse
A construction error is the chief suspect in the partial collapse of a parking garage at Miami-Dade College in Doral, FL.
| Oct 31, 2012
New European laws on timber will go into effect in March 2013
A new European Union timber regulation prohibits the “placing on the market of illegally harvested timber or timber products derived from such timber.”
| Oct 31, 2012
MIT models show roofs' capacity for solar energy in Cambridge, Mass.
A new mapping tool from the Massachusetts Institute of Technology and a Boston design firm can calculate rooftops' capacity for solar energy.
| Oct 31, 2012
Demand for living roofs, walls to reach $7.7 billion by 2017
The demand for green roofs and living walls is expected to climb from $5.3 billion in 2011 to $7.7 billion in 2017, according to a report from Lux Research.