S
M
A
R
T
M
A
R
K
E
T
BR
IE
F
IMPROVING
THE
CONSTRUCTION
PROGRESS
AND
PAYMENT
PROCESS
THE TIME REQUIRED FOR OWNERS
TO PAY CONTRACTORS
Owners and contractors who responded that accelerating the
time required to pay contractors is one of the top ways to improve
the progress and payment workflow (see page 11) were asked to
compare the length of time currently needed for owners to pay
contractors to the ideal (but realistic) length of time that process
should take.
■
Owners are nearly evenly split between those who think this
process takes about the right amount of time now (48%) and
those who think it takes too much time (46%).
■
On the other hand, more than three times as many
contractors (76%) believe this process takes too long than those
who think it is the right amount of time currently (23%).
While it is certainly not surprising that more contractors believe that
they should be paid faster than owners do, the difference is notable
enough to suggest that owners do not fully realize the degree to
which delayed payments are an issue for contractors. With most
contractors having to pay for labor, materials and equipment before
they can submit for their own payment on a project, the delays can be
particularly costly for contractors, increasing the risks that they are
exposed to.
The chart on the next page highlights top ways owners and
contractors believe this can be accelerated.
Challenges in the Process
Comparison Between Current Length of Time Needed for
Owners to Pay Contractors and the Ideal Length of Time
According to owners and contractors who selected payment of contractor by owner as a top
step to accelerate
Takes Much More Time
17%
21%
29%
55%
48%
23%
7%
Takes Somewhat More Time
Takes About the Right Amount of Time
Not Sure
Owners Contractors
1%
16 SmartMarket Brief: Connecting Owners and Contractors Premier Par tner: e-Builder © Dodge Data & Analytics w w w.construction.com
