Residential Contractors More Likely to Be Paid on Time Than Commercial Contractors
Residential contractors are more than twice as likely to be paid within 30 days than those working on commercial or public jobs, who are three times more likely to see payments delayed by 60 days or more, ConstructionDive reports. Though contractors working on residential jobs reported regular payment within 30 days or less 48% of the time, contractors in the commercial sector say prompt payment happens just 21% of the time.
In the meantime, contractors are also battling a series of post-pandemic obstacles with staffing difficulties, supply chain bottlenecks, and increasing construction costs.
To ensure prompt payment, a greater portion of contractors working on residential construction projects believe that interpersonal communication and high-quality work, relative to their commercial and public counterparts, are vital to prompt payment. Conversely, a greater percentage of commercial and public project contractors believe that process-related variables play a greater role in timely payment.