The Construction Problem Few Talk About: Payment Delays

The construction industry builds skylines, bridges and critical infrastructure, yet its own critical financial infrastructure often runs on outdated payment practices.

Findings in the February 2026 edition of the B2B and Digital Payments Tracker® Series from PYMNTS Intelligence reveal that roughly 70% of contractors and subcontractors report experiencing payment delays on a regular basis, a reality that has become embedded in the industry’s operating model.

In construction’s highly fragmented ecosystem, one where developers, general contractors, subcontractors and suppliers form interdependent chains; cash flow disruptions can propagate quickly. Subcontractors frequently absorb the greatest shock. Many are forced to front material costs and labor expenses while awaiting payment from upstream partners.

The result is a precarious liquidity environment in which small and midsize firms shoulder disproportionate financial risk. But it doesn’t have to be this way.

Digital advances in payment systems already exist, and have for years. These solutions can automate invoicing, approvals and reconciliation, allowing construction payments to move more quickly and transparently across project participants.

That’s why, for construction firms themselves, modernizing payment systems is becoming less about convenience and more about competitiveness.

Building the Financial Infrastructure of Construction

The construction industry has historically adopted new technology gradually, often prioritizing tools that directly affect job-site productivity. But as projects grow larger and supply chains more complex, financial coordination is emerging as an equally critical challenge.

Digitizing payments will not solve every problem facing construction. Labor shortages, regulatory hurdles and material costs will remain major factors shaping the industry’s future.

Yet improving how money moves through construction projects could address one of the sector’s most persistent sources of friction and evolve it into a competitive advantage. Contractors can track invoice status in real time, while subcontractors can gain greater visibility into when they will be paid.

In an industry where delays and cost overruns are common, even modest improvements in financial coordination can have meaningful effects on project performance.

The report highlighted that about 70% of developers consider timely and accurate payments to subcontractors the most effective way to prevent project cost overruns.

At the same time, reliable, predictable payments can strengthen relationships with subcontractors and suppliers. Firms known for paying quickly and transparently may find it easier to attract skilled trades and secure favorable terms from vendors.

See the report: 2026’s Digital Blueprint: Building Payment Stability in Construction

Digital systems also generate data that can inform strategic decision-making. Payment analytics enable firms to forecast cash flow more accurately, assess vendor reliability and identify bottlenecks in financial workflows. Over time, these insights can transform payment management from a reactive administrative function into a proactive financial strategy.

Industry sentiment suggests a strong appetite for change. The report findings indicate that 82% of contractors would adopt digital payment systems if they could accelerate cash flow, while more than three-quarters say they would even offer discounts in exchange for faster payments.

The shift reflects a broader realization within the industry: payments are not just an accounting function but a core part of project infrastructure.

And for financial technology companies, construction represents a large but historically underserved market. The sector generates trillions of dollars in global spending each year, yet much of its payment infrastructure remains manual. That combination of high transaction volume and low digitization has drawn the attention of FinTech firms specializing in business payments and embedded finance.

Payment processors, accounting software providers and construction-finance specialists are increasingly collaborating to deliver integrated payment environments tailored to the industry’s complex workflows.

For construction firms navigating inflationary pressures and rising material costs, the value proposition is straightforward: faster payments translate into stronger liquidity and reduced operational risk. In an industry defined by complexity, scale and risk, the ability to maintain stable financial flows may become just as essential as engineering expertise.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.