How do slow payments to general contractors and subcontractors impact developers and construction lenders?
Rabbet's 2022 Construction Payments Report answers this, the 'why' behind the $208 billion impact on the industry for carrying forward the fees and costs of slow payments, as well as the impact of inflation and rising interest rates on construction bidding.
Learn how slow payments are adding cost, time, and risk to projects in this year's Construction Payments Report.
- $208B the cost of slow payments to the US construction industry
- 37% of all respondents report that work has been delayed or stopped due to a delay in payments to crew members in the last 12 months
- 44 hours per month general contractors spend managing payments to subs and vendors
- 90% of general contractors surveyed see the value in paying their subcontractors faster
- 62% of general contractors have incurred billing charges, financing charges, or other costs when floating payments to others in the last 12 months
- 8.5x increase in general contractors using retirement savings to float payments for their business