Subcontractors using retirement savings to stay afloat have jumped 147 percent since 2019 as digital billing tools prove critical to getting paid faster
SAN FRANCISCO, CA / ACCESS Newswire / August 12, 2025 / Siteline, the only billing software built for trade contractors, today released its newest industry resource, The State of Subcontractor Billing in 2025. The report details how payment delays are threatening the financial stability of construction businesses, especially for the commercial trades, and how digital billing systems can help them regain control of their cash flow.
According to the report, the average subcontractor now waits 96 days to get paid, up from 90 days in 2019. Only five percent of subcontractors consistently receive payment on time, and more than 75 percent are covering vendor costs out of pocket while they wait. The financial pressure is escalating, with a 147 percent increase since 2019 in subcontractors who have had to dip into retirement savings to keep their businesses running.
"Subcontractors shouldn't have to choose between paying their vendors and preserving their future. Every day a payment is delayed, it chips away at profits and forces trade contractors to cover expenses with money they don't have," said Gloria Lin, co-founder and CEO of Siteline. "Trade contractors keep the construction industry moving forward, and they deserve systems that support them. That's why Siteline exists: to help subcontractors get paid faster and run their businesses more efficiently."
The report also details the broader impact on the construction ecosystem. Payment delays cost the U.S. construction industry $280 billion annually and increase overall project costs by approximately 14 percent. General contractors (GC) are feeling the burden too, now spending 73 hours each month managing payment workflows, a 26 percent increase from the prior year. While 99 percent of GCs acknowledge the value of paying subcontractors faster, 27 percent cite a lack of organized processes as the primary cause of late payments.
Knowing that a staggering 14 percent of construction costs could be eliminated with faster payment processes, Siteline offers a promising path forward. Subcontractors using Siteline have cut their Days Sales Outstanding (DSO) to an average of 53.3 days, a 44 percent improvement over the industry average. Continued use of the software drives even better results over time, placing users among the top-performing firms in the industry.
The report includes comprehensive industry data, common causes of payment delays, and specific steps subcontractors can take to strengthen billing processes and accelerate cash flow. Click here to download The State of Subcontractor Billing in 2025.
About Siteline
Siteline is the first billing software created for trade contractors so they can focus on building, not billing. It simplifies the pay application process, manages compliance and lien waivers, automates billing workflows, and eliminates common rejection points so subcontractors get paid faster. To learn more, visit www.siteline.com.
Contact Information
Sarah Hawley
sarah@mockingbirdcomms.com
480-292-4640
SOURCE: Siteline
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/computers-technology-and-internet/siteline-report-reveals-deepening-crisis-in-construction-payments-1059573
