CCA Holds National Summit
to Address Questions
of Payment Delays
Diverse stakeholder
perspectives aim to help solve
one of the industry’s most
pressing cash flow issues
By James Raiswell, Stiff Sentences Inc.
No one across our industry disputes the notion that
cash flow is critical to operations. Money comes in
from owners or prime contractors and flows out to
buy materials, rent equipment and pay employees. When cash flows
in a timely fashion, contractors can fund operations fully and run
their businesses effectively. They can hire people more easily, invest
in machinery and pay their suppliers on time.
The trouble is, cash no longer flows freely in the construction industry.
It used to be that contractors could count on being paid for
their draws within 15 days of invoicing. That changed to 30 days,
then 45 days. Sixty days now seems to be the accepted norm.
Lengthy delays hit contractors hard. Trade contractors in particular
feel the squeeze. Their revenues depend on unscheduled – and
often, late – payments from prime contractors, yet their costs arrive
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