Can contractors spot 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 (https://getbuilt.com) 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.”