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
| Mar 22, 2012
Symposium on water efficiency: How much more water can be saved?
The Third International Emerging Technology Symposium by IAPMO and the World Plumbing Council features a session on water efficiency.
| Mar 22, 2012
Broker doesn’t have to inform contractor that insurer went broke, California court rules
A California appellate court ruled that an insurance broker did not have a duty to inform a subcontractor that a project’s insurer had gone bankrupt.
| Mar 22, 2012
Public agencies shouldn’t negotiate project labor agreements, says AGC official
When a public agency rather than the contractor negotiates a PLA with unions, it interferes with the right of employers and workers to reach their own agreements on working conditions and benefits, says Steve Isenhart, president of the Associated General Contractors of Washington.
| Mar 22, 2012
Proposed rule would let crane operators get licenses without prior city experience
The Bloomberg administration is considering letting operators of giant tower cranes get their license without requiring that they first run cranes as apprentices in the city for three years.
| Mar 22, 2012
Bill would reintroduce “opt-out” provision in lead paint law
The Lead Exposure Reduction Amendments Act of 2012 (S2148) would restore the "Opt-Out" provision removed from the Environmental Protection Agency's Lead Renovate, Repair and Painting (LRRP) rule in April 2010.
| Mar 15, 2012
New Florida building code establishes flood and storm surge provisions
The new 2010 code establishes minimum design and construction requirements to protect buildings from wind, rain, floods, and storm surges.
| Mar 15, 2012
Illinois city rejects international code due to home sprinkler requirement
Macomb, Illinois aldermen voted to recommend that the city not adopt 2012 international building and residential code standards requiring the installation of overhead sprinkler systems in newly constructed one-family and two-family homes.
| Mar 15, 2012
Tenant advocates propose licensing landlords in New York City
With thousands of New York City rental units posing potential dangers to tenants, city advocates are proposing measures to make landlords improve building safety.
| Mar 15, 2012
Construction industry a big winner in federal small disadvantaged business procurement
Last year, only 5% of federal contract dollars went to small disadvantaged businesses. Construction and facilities support firms were the biggest beneficiaries.