In a recent article by ConstructionDive.com, construction finance platform Rabbet reports that slow payments from owners drive up the cost of construction projects by 5.3%! Highlights from the article:
Slow payments are costing GC's nearly $64 billion dollars a year, a increase of over $24 billion since 2018.
51 days is the average payment turnaround
GC's and Subs will not bid on work with owners that have reputations for delaying payments
72% of GC's say that they would offer a 1 to 5% discount for quicker payments (remember to ask this of your GC and all Sub's on your next project and get in the contract terms!)
GC's are understanding the value of paying their subcontractors quickly due to a busy construction market; with 75% of the GC's surveyed paying multiple times per month.
Mural of the story: Everyone likes to be paid on time and it saves all of us money in the end.
Here's a link to the full article: