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
Construction
Demand—and Competition—for Skilled Construction Workers Grows
Strongest need seen for construction superintendents, with other job titles for skilled trades also in high demand
Labor + Trade Relations
Residential Building Wages Rise Again in March
Wage growth for residential building workers continued during March, but at a slower pace than during the previous month
Labor + Trade Relations
Which States Have the Highest Wages for Construction Workers?
Data show that construction workers in the Northeast and on the Pacific coast have some of the highest hourly earnings, while earnings in construction grew faster in the southern states