Get Paid On Time: The Key to Building Success

This morning, I stumbled upon an article that caught my attention. The Council of Ontario Construction Associations (COCA) has launched a province-wide awareness campaign that aims to promote timely payments to contractors. The campaign comes with a comprehensive online resource center called the Prompt Payment and Adjudication Toolkit, which provides valuable information to everyone involved in construction projects. Click here to check out the toolkit!

This is a much-needed initiative that addresses an issue that has plagued the construction industry for far too long. Delayed payments have caused nearly 28% of all construction companies in Canada to experience cash flow issues, leading many to go bankrupt. Small businesses in the construction industry often have to wait an average of 72 days to receive payment, which can create significant financial strain.

The problem is not unique to Canada. A recent survey conducted by Levelset reveals that only about 1 in 10 construction businesses in the United States are always paid on time. While almost 9 out of 10 construction companies offer payment terms of 30 days or less, less than 4 in 10 businesses report receiving payment within that time frame.

The consequences of delayed payments are severe. Construction companies report wasted resources, reduced profits, and failure to meet payroll as some of the effects of slow payments.

To be proactive in addressing the issue of delayed payments, it's crucial to have visibility into your projects. You can't improve what you can't measure. Imagine having a project management tool that does more than just RFI and issue tracking. A tool that can distribute costs by connecting budget items to schedule tasks and provide project-level cash flow analysis with dynamic graphical representation.

Thankfully, Autodesk offers a suite of intuitive tools and connected workflows for the design and construction industry. Our team of industry experts at SolidCAD can show you how to leverage these tools to improve your project management and cash flow visibility. We understand the unique challenges faced by small and medium-sized businesses in the construction industry and can provide tailored solutions to help you overcome them. If you're interested in learning more about how we can help, reach out to us.

How do you create, manage and share your construction data today and where do you see the room for improvement?

References And Links:

Canadian Federation of Independent Business. (2020). Construction Industry Profile. Retrieved from https://www.cfib-fcei.ca/sites/default/files/2020-08/Construction-Industry-Profile-2020.pdf

COCA's Prompt Payment and Adjudication Toolkit: https://www.coca.on.ca/advocacy-prompt-payment/

Autodesk's construction cost management workflow: https://construction.autodesk.com/workflows/construction-cost-management/

Learn More About SolidCAD: https://www.dhirubhai.net/smart-links/AQHvSoRxA3tGQQ