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.
Advertisement
Related Stories
NAHB
NAHB Celebrates Careers in Construction Month
The National Association of Home Builders is kicking off Careers in Construction Month with a full schedule of events and activities to celebrate construction professionals
Education + Training
Missouri High School Students Build Their Future
The Build My Future event recently hosted by The Associated General Contractors of Missouri introduced more than 1,800 high school students to career opportunities in the skilled trades
Women in Construction
Construction Industry Implements Lactation Pods for Working Mothers
The federal PUMP Act, which went into effect in late 2022, grants breastfeeding women the right to private spaces on the jobsite for pumping breast milk
