Construction Lost $299B to Payment Delays Last Year — Here’s How to Stop the Bleeding

Construction is always moving. Crews are working, materials are arriving, and projects are getting built.

But one problem continues to slow everything down: late and inconsistent payments.

Rabbet’s 2025 Construction Payments Report found that slow, and inconsistent payments act like a hidden 14% cost on projects. In total, costing about $299 billion from the U.S. construction in 2025.

Most contractors say the reasons are:

• Disorganized intake

• Unclear requirements

• Status ambiguity

In other words, the work gets done… but the money doesn’t always follow on time.

Why Faster Payments Matter

For many contractors, late payments aren’t just frustrating—they can quickly become a serious financial strain.

Industry data shows that 98% of general contractors have relied on personal savings, credit cards, or even retirement funds to cover expenses while waiting to get paid.

The good news is that faster, more reliable payment processes don’t just improve cash flow. They can also reduce overall construction costs by as much as 14%, helping firms avoid unnecessary borrowing and financial pressure.

At the same time, laws like New York’s Prompt Payment Act are increasing expectations around payment speed and transparency, making it even more important for construction companies to modernize how they manage billing and approvals.

A Better Approach: Moving Construction Finance to the Cloud

Many construction companies still rely on spreadsheets or legacy accounting tools that don’t fully connect project costs, billing, and payments. Today, modern cloud-based platforms offer a more integrated approach by bringing these workflows together in one system.

By connecting job costing, billing, and payments in a unified environment, cloud-based accounting platforms give finance teams real-time insight into project performance—making it easier to:

• Generate faster, more accurate invoices

• Capture change orders and adjustments cleanly

• Reduce disputes with clear audit trails

• Improve forecasting and working capital planning

Reducing delayed payments starts with better visibility and control over cash flow—and that requires accounting systems built for the way construction operates today.

A Step to Solving Delayed Payments with the Right Accounting Software  

Construction’s $299B loss from delayed payments didn’t happen overnight—and it won’t be solved with one quick fix.

But firms that want to get ahead of payment delays can start by moving away from outdated accounting systems that slow billing, limit visibility, and create avoidable disputes.

Modern cloud tools make it easier to streamline workflows, track costs in real time, and build more predictable cash flow. Solutions like Sage Intacct Construction help finance teams strengthen working capital and protect profitability—so delayed payments don’t continue draining the industry.

If you’re curious to learn more, you can schedule a short demo with our experts to see how Sage Intacct Construction helps reduce delays and improve cash flow predictability.