A new survey indicates that a slower construction could be an important indicator of an outstanding recession.
The investigation of 250 American general entrepreneurs and subcontractors showed that 73% can recognize what the larger economic climate will be based on the speed of projects.
Another 59% are affected that the current tariff crisis will have a direct impact on your projects and the entire business.
Half said that they would often have to fight to prevent them from being quoted for their projects.
In the relationship between the industry and the larger economic climate, three out of five contractors (58%) are so certain that they believe that a faster payment system in the construction industry would “guarantee” a reduced inflation pressure.
Commissioned by the study built and carried out by Talkers Research, showed that it takes 15 days on average until the contractor and subcontractor receive payment after the invoice for their work.
But seven out of ten have delays in their payments.
Those who had payment delays stated that around 10% exceeding 30 days.
And many usually turn either their business savings (45%), business credit lines (45%) and credit cards (44%) to cover expenses and at the same time to wait for payments.
As a result of payment delays, 72% stated that the offer amounts can be adapted by up to 8% on average to compensate for.
64 percent had to submit a lien due to delays.
And the average contractor had to hire all work on certain projects last year due to delays.
In a third party (35%), projects were also canceled or delayed greatly due to the lack of finances of developers.
“Delays in payment are not only administrative headaches, but that they lend significant hidden costs to the construction, especially with already tense budgets in which fewer projects are pencil,” says Chase Gilbert, CEO of Build.
“If projects are stalling, their money does not work for them. It works against them. Developers who only pay slowly cost themselves more than they see – whether they see it or not.”
The survey showed that many contractors made a number of different measures to manage their cash flow and the costs in slow payment cycles.
These measures include increased use of loans (41%), the longer terms with suppliers (33%) and reduced project bids (24%).
Fate payments can be so serious that 76% would offer discounts on offers if a faster payment was guaranteed – an average of 5%.
Six out of ten said that the call of a developer for timely payments has a major or significant impact on their decision to offer for a project.
According to many contractors, many contractors stated that the greatest delays in contribution for payment delays from contractual disputes (23%), cash flow management and prioritization (21%), bank payments (18%), administrative stop data (14%) and manual or paper-based processes (14%) can be attributed.
More than half (58%) believe that the technology plays an important or significant role in ensuring faster payments in the construction industry.
Four out of five (82%) stated that they willingly accept to receive digital payments if it meant getting their money faster.
“Delayed payments not only frustrate the contractors – they create a wave effect that increases the costs, derails schedules and eroded margins throughout the industry,” said Gilbert.
“The modernization of payment systems is not just about speed – it is about protecting profitability, reducing overhead costs and accelerating capital inflows. If the capital is efficient, everyone benefits from developers to communities.”
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Talker Research interviewed 250 American general entrepreneurs and subcontractors; The survey was administered and managed by Talkers Research between April 2 and April 10, 2025 by Talkers Research.