Delayed payments in construction definitely has an impact on productivity! If you’re not paying Contractors, Subcontractors, and Suppliers in a timely manner, your probably not working with the better ones. You’re probably not getting the best pricing and their better (more productive) crews. Long-lead items often are not ordered on time due to cash flow issues. Who hasn’t seen a project impacted by long-lead materials? Delayed payments definitely has an impact!
If you don't believe construction has a productivity problem, consider that the US GDP is annually missing out on an estimated $2.8 trillion as a result of falling productivity in construction. When The University of Chicago Booth School of Business professor and economist Chad Syverson shared that estimate with a room full of #AECIndsutry leaders at last week's Annual CEO Forum, it sparked shock, skepticism, and a rich discussion. Our latest post from Matthew Gray lays out the big takeaways from that discussion. #Productivity #Construction