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 | Apr 5, 2022
New York City chooses 20 firms for architectural design services on future public building projects
The New York City Department of Design and Construction (DDC) has contracted with 20 firms to provide architectural design services for the city’s future public buildings projects under the latest round of DDC’s Project Excellence Program.
Codes and Standards | Apr 4, 2022
Construction of industrial space continues robust growth
Construction and development of new industrial space in the U.S. remains robust, with all signs pointing to another big year in this market segment
Legislation | Apr 1, 2022
American Bird Conservancy doubles capacity to test bird-friendly glass
American Bird Conservancy (ABC), working with Washington College in Maryland, says it has doubled its capacity to test and rate glass and other materials for their ability to deter bird collisions.
Modular Building | Mar 31, 2022
Rick Murdock’s dream multifamily housing factory
Modular housing leader Rick Murdock had a vision: Why not use robotic systems to automate the production of affordable modular housing? Now that vision is a reality.
Legislation | Mar 31, 2022
Bill in Washington State would fund seismic retrofits in schools
A bill recently passed by the Washington State Senate could unleash hundreds of millions of dollars for school seismic retrofits over several years.
Legislation | Mar 30, 2022
Wisconsin legislators expand the scope of interior design in the state
Legislators in Wisconsin passed a bill, quickly signed into law by the governor, that codifies holistic interior design legislation and significantly expands the scope of interior design in the state.
Legislation | Mar 28, 2022
LEED Platinum office tower faces millions in fines due to New York’s Local Law 97
One Bryant Park, also known as the Bank of America Tower, in Manhattan faces an estimated $2.4 million in annual fines when New York City’s York’s Local Law 97 goes into effect.
Codes and Standards | Mar 24, 2022
New York senate moves to speed up fossil fuel ban in new buildings
Lawmakers in the New York State Senate are backing a proposal to ban fossil fuels in new building construction three years sooner than a plan proposed by Gov. Kathy Hochul.
Codes and Standards | Mar 23, 2022
High office vacancies have cities rethinking downtown zoning
As record-high office vacancies persist in U.S. urban areas, cities are rethinking zoning policy.
Codes and Standards | Mar 22, 2022
Dept. of Energy awards $32 million for next-generation building retrofits
The U.S. Dept. of Energy has awarded a total of $32 million for more than 30 next-generation building retrofit projects that will dramatically improve affordable housing technologies, according to a DOE news release.