Slow payments cost the construction industry $208 billion in 2022

The cost of floating payments for wages and invoices represents $208 billion in excess cost to the construction industry, a 53% increase from 2021, according to a survey by Rabbet, a provider of construction finance software.

Those costs are passed on to real estate developers and financiers in the form of project delays, added risk, and higher bids from contractors.

Other survey findings include:

37% of all respondents report that work has been delayed or stopped due to a delay in payments to crew members
62% of general contractors incurred billing charges, financing charges, or other costs when floating payments to others
There was an 8.5x increase in general contractors using retirement savings to float payments for their business

Though a 53% increase in the cost of slow payments in one year is major, it’s on par when considering the current economic environment, according to a Rabbet news release.

Some contractors said they are boosting their bids 5-10% to help absorb associated costs and are “pickier when selecting bids because of increasing labor and supply prices.”

This course defines the elements of hospital campus access that are essential to promoting the efficient, stress-free movement of patients, staff, family, and visitors. Campus access elements include signage and wayfinding, parking facilities, transportation demand management, shuttle buses, curb access, valet parking management, roadways, and pedestrian walkways.

For glass openings, how big is too big?

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Codes and Standards | May 3, 2022

American Institute of Steel Construction updates environmental product declarations

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Education Facilities | May 2, 2022

Texas School for the Deaf campus gateway enhances sense of belonging for deaf community

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Codes and Standards | May 2, 2022

Developer Hines, engineer MKA develop free embodied carbon reduction guide

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Building Team | May 2, 2022

HED and VAI announce merger to bring strategic expertise and drive community impact in Dallas

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