S
M
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BR
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IMPROVING
THE
CONSTRUCTION
PROGRESS
AND
PAYMENT
PROCESS
TOP WAYS TO IMPROVE THE TIME
REQUIRED TO PAY CONTRACTORS
Contractors who believe that their payments from owners often take
longer than they should (see page 16) were asked what they think the
single most effective means of accelerating those payments would
be. The chart at right shows that, by far, the highest percentage of
contractors (34%) think that a faster method for owners to validate the
accuracy of their payment applications is needed.
Fewer contractors believe that the owner's basic payment terms need
to be changed or that having a single software solution would improve
the process, although the percentage is still significant. These findings
reveal that contractors generally believe accelerating payments should
be addressed through better tools, rather than by trying to change
owner policies.
OWNERS' PERSPECTIVE
Owners who believe that their payments to contractors take too long
were also asked this question, but too few fell in that category for their
responses to be statistically significant. However, like the contractors,
the highest percentage of owners selected the need for faster methods
for them to validate the accuracy of the payment applications, although
many also see the need for GCs to submit more accurate payment
applications. In addition, a relatively high percentage also believe
that a single software solution would be the most useful means of
accelerating this process. In all, the owners' findings largely reinforce
the perspective of the GCs.
Challenges in the Process
Single Software Solution Used by
Trades, GCs and Owners
Faster Methods for Owners
to Validate Accuracy of GCs'
Payment Applications
7%
7%
34%
17%
18%
Different Contract Terms
Regarding Payment
GCs Submitting More Accurate
Payment Application Information to
Owners
GCs Submitting More Complete
Payment Application Information
to Owners
Top Method of Accelerating the Timeliness of Contractor
Payments by Owners
According to contractors who believe that owners take too long to pay them
© Dodge Data & Analytics w w w.construction.com Premier Par tner: e-Builder SmartMarket Brief: Connecting Owners and Contractors 17
