Payment apps and fintech solutions are automating wages and construction fees for contractors and speeding along the payment process for all construction employees, Construction Dive reports. Apps like Siteline automatically complete 30-, 60- and 90-day billings to allow contractors to focus on hands-on tasks rather than behind-the-scenes financial responsibilities, while tech solutions like Flexbase come with a high-limit, zero-interest corporate credit card to ensure that purchases for building materials aren’t delayed by client payments.
A 2021 Construction Cash Flow and Payment Report by risk management software Levelset revealed that 79% of construction companies that accept electronic payments get paid faster, and automated payments for trade partners can also speed along transactions to keep projects on schedule.
Slow payments to general contractors and subcontractors cost the industry $136 billion in 2021, a 36% increase over 2020, according to the annual Construction Payments Report from Rabbet, a fintech company serving real estate developers and construction lenders. When asked what they would change about their payments process, many contractors reported the need for automatic, instant or direct payments.