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New York Post
21-05-2025
- Business
- New York Post
How contractors are preparing for a pending recession
A new survey suggests slower construction could be a major indicator of a pending recession. The study of 250 American general contractors and subcontractors found 73% can tell what the larger economic climate will be based on the speed of projects. Advertisement A further 59% are concerned the current tariff crisis will have a direct impact on their projects and business as a whole. Half said they frequently have to fight to prevent being lowballed on quotes for their projects. Three in five contractors (58%) are so confident in the relationship between the industry and the larger economic climate, they believe having faster payment systems in place would 'guarantee' reduced inflationary pressure in the construction industry. Commissioned by Built and conducted by Talker Research, the study found it takes 15 days on average for contractors and subcontractors to receive payment after invoicing for their jobs. Advertisement Yet seven in 10 have experienced delays in their payments. Those who have had payment delays said about 10% exceed 30 days. 3 A survey released by Built, which was conducted by Talker Research, reveals that slower construction is a major indicator of a possible recession. Quality Stock Arts – And many typically turn to either their business savings (45%), business credit lines (45%) and credit cards (44%) to cover expenses while awaiting payments. Advertisement As a result of payment delays, 72% said they have had to adjust bid amounts by as much as 8% on average in order to compensate. Sixty-four percent have had to file liens due to delays. And the average contractor has had to halt all work on particular projects at least once in the past year because of delays. A third (35%) have also had projects canceled altogether or heavily delayed due to a lack of finances from developers. Advertisement 3 The study of 250 American general contractors and subcontractors revealed that 73% of those surveyed can determine what the economic climate will be like on how long construction projects take. Morakot – 'Payment delays aren't just administrative headaches—they're adding significant hidden costs to construction, especially with already strained budgets where fewer projects pencil,' says Chase Gilbert, CEO of Built. 'If projects are stalled, your money isn't working for you; it's working against you. Developers who are slow to pay are costing themselves more than they may realize—whether they see it or not.' The survey found many contractors have adopted a number of different measures to manage their cash flow and costs amid slow payment cycles. Those measures include increased use of credit (41%), negotiated longer terms with suppliers (33%) and reduced project bidding (24%). Delayed payments can be so severe of a problem, 76% would offer discounts on bids if a faster payment was guaranteed — 5% on average. 3 59% of those surveyed believe the tariff crisis could have a direct impact on their projects and their business. interstid – Six in 10 said a developer's reputation for timely payments has a major or significant impact on their decision to bid for a project. Advertisement In their opinions, many contractors said the biggest contributors to payment delays stem from contract disputes (23%), cash flow management and prioritization (21%), bank disbursement processes (18%), administrative hold-ups (14%) and manual or paper-based processes (14%). More than half (58%) believe technology plays a major or significant role in ensuring faster payments in the construction industry. Four in five (82%) said they'd willingly accept receiving digital payments, if it meant getting their money faster. Advertisement 'Delayed payments don't just frustrate contractors—they create a ripple effect that drives up costs, derails schedules, and erodes margins throughout the industry,' said Gilbert. 'Modernizing payment workflows isn't just about speed—it's about protecting profitability, reducing overhead, and accelerating capital inflows. When capital moves efficiently, everyone benefits—from developers to communities.' Survey methodology: Talker Research surveyed 250 American general contractors and subcontractors; the survey was commissioned by Built and administered and conducted online by Talker Research between Apr. 2 and Apr. 10, 2025.
Miami Herald
21-05-2025
- Business
- Miami Herald
Can contractors smell a recession before economists?
A new survey suggests slower construction could be a major indicator of a pending recession. The study of 250 American general contractors and subcontractors found 73% can tell what the larger economic climate will be based on the speed of projects. A further 59% are concerned the current tariff crises will have a direct impact on their projects and business as a whole. Half said they frequently have to fight to prevent being lowballed on quotes for their projects. Three in five contractors (58%) are so confident in the relationship between the industry and the larger economic climate, they believe having faster payment systems in place would "guarantee" reduced inflationary pressure in the construction industry. Commissioned by Built and conducted by Talker Research, the study found it takes 15 days on average for contractors and subcontractors to receive payment after invoicing for their jobs. Yet seven in 10 have experienced delays in their payments. Those who have had payment delays said about 10% exceed 30 days. And many typically turn to either their business savings (45%), business credit lines (45%) and credit cards (44%) to cover expenses while awaiting payments. As a result of payment delays, 72% said they have had to adjust bid amounts by as much as 8% on average in order to compensate. Sixty-four percent have had to file liens due to delays. And the average contractor has had to halt all work on particular projects at least once in the past year because of delays. A third (35%) have also had projects canceled altogether or heavily delayed due to a lack of finances from developers. "Payment delays aren't just administrative headaches-they're adding significant hidden costs to construction, especially with already strained budgets where fewer projects pencil," says Chase Gilbert, CEO of Built. "If projects are stalled, your money isn't working for you; it's working against you. Developers who are slow to pay are costing themselves more than they may realize-whether they see it or not." The survey found many contractors have adopted a number of different measures to manage their cash flow and costs amid slow payment cycles. Those measures include increased use of credit (41%), negotiated longer terms with suppliers (33%) and reduced project bidding (24%). Delayed payments can be so severe of a problem, 76% would offer discounts on bids if a faster payment was guaranteed - 5% on average. Six in 10 said a developer's reputation for timely payments has a major or significant impact on their decision to bid for a project. In their opinions, many contractors said the biggest contributors to payment delays stem from contract disputes (23%), cash flow management and prioritization (21%), bank disbursement processes (18%), administrative hold-ups (14%) and manual or paper-based processes (14%). More than half (58%) believe technology plays a major or significant role in ensuring faster payments in the construction industry. Four in five (82%) said they'd willingly accept receiving digital payments, if it meant getting their money faster. "Delayed payments don't just frustrate contractors-they create a ripple effect that drives up costs, derails schedules, and erodes margins throughout the industry," said Gilbert. "Modernizing payment workflows isn't just about speed-it's about protecting profitability, reducing overhead, and accelerating capital inflows. When capital moves efficiently, everyone benefits-from developers to communities." Survey methodology: Talker Research surveyed 250 American general contractors and subcontractors; the survey was commissioned by Built and administered and conducted online by Talker Research between Apr. 2 and Apr. 10, 2025. We are sourcing from a non-probability frame and the two main sources we use are: Traditional online access panels - where respondents opt-in to take part in online market research for an incentiveProgrammatic - where respondents are online and are given the option to take part in a survey to receive a virtual incentive usually related to the online activity they are engaging in Those who did not fit the specified sample were terminated from the survey. As the survey is fielded, dynamic online sampling is used, adjusting targeting to achieve the quotas specified as part of the sampling plan. Regardless of which sources a respondent came from, they were directed to an Online Survey, where the survey was conducted in English; a link to the questionnaire can be shared upon request. Respondents were awarded points for completing the survey. These points have a small cash-equivalent monetary value. Cells are only reported on for analysis if they have a minimum of 80 respondents, and statistical significance is calculated at the 95% level. Data is not weighted, but quotas and other parameters are put in place to reach the desired sample. Interviews are excluded from the final analysis if they failed quality-checking measures. This includes: Speeders: Respondents who complete the survey in a time that is quicker than one-third of the median length of interview are disqualified as speedersOpen ends: All verbatim responses (full open-ended questions as well as other please specify options) are checked for inappropriate or irrelevant textBots: Captcha is enabled on surveys, which allows the research team to identify and disqualify botsDuplicates: Survey software has "deduping" based on digital fingerprinting, which ensures nobody is allowed to take the survey more than once It is worth noting that this survey was only available to individuals with internet access, and the results may not be generalizable to those without internet access. The post Can contractors smell a recession before economists? appeared first on Talker. Copyright Talker News. All Rights Reserved.
