Contractors See Early Warning Signs For Economic Downturns, Survey Finds

A new survey of U.S. contractors suggests that the construction industry may serve as an early barometer for broader economic shifts — possibly even before economists sound the alarm.

According to a nationwide poll of 250 general contractors and subcontractors, 73% believe they can assess the state of the larger economy based on how quickly — or slowly — projects are moving. Commissioned by construction finance platform Built and conducted by Talker Research, the survey reveals that payment delays, project slowdowns, and rising financial strain may be flashing warning signs for the economy.

Amid tariff concerns, half of respondents said they regularly battle lowball offers on project bids, and 59% expressed concern that current trade tensions will directly impact their operations. Perhaps more notably, 58% said they believe implementing faster payment systems would “guarantee” reduced inflationary pressure in the industry.

“Payment delays arent just administrative headaches — they’re adding significant hidden costs to construction, especially with already strained budgets where fewer projects pencil,” said Built CEO Chase Gilbert. “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 that contractors typically wait an average of 15 days for payment after submitting an invoice, but delays are common. Seventy percent said theyve experienced late payments, and 10% of those delays exceeded 30 days. To bridge financial gaps, contractors frequently dip into business savings (45%), credit lines (45%), or credit cards (44%).

Delayed payments have real consequences. Seventy-two percent of contractors reported raising their bid amounts — by 8% on average — to compensate for late payments. More than half (64%) have filed liens due to nonpayment, and 35% said theyve had projects canceled or heavily delayed due to developers financial constraints. In fact, the average contractor has had to halt a project at least once in the past year because of delayed payments.

Contractors are adopting various strategies to manage the impact of these delays, including increasing their use of credit (41%), negotiating longer terms with suppliers (33%), and reducing the number of projects they bid on (24%). A significant majority (76%) said they would offer a discount on project bids — about 5% on average — if faster payment was guaranteed.

Reputation also matters: 60% said a developers history of paying on time plays a major or significant role in their decision to bid.

The root causes of payment delays, according to respondents, include contract disputes (23%), cash flow management issues (21%), bank disbursement processes (18%), and administrative or paper-based hold-ups (both at 14%).

Technology could help bridge the gap. Over half (58%) believe digital solutions can help speed up payments, and 82% said they would willingly accept digital payments if it meant getting paid faster.

“Delayed payments dont 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 isnt just about speed — its about protecting profitability, reducing overhead, and accelerating capital inflows. When capital moves efficiently, everyone benefits — from developers to communities.”