The construction industry's slow payment culture costs subcontractors billions each year. But you don't have to accept it. Here are ten strategies that real subcontractors are using to dramatically reduce their payment timelines.
1. Invoice from the Job Site
The moment work is complete, send your invoice. Same-day invoicing gets you paid an average of two weeks faster than weekly billing. AI-powered photo invoicing makes this possible without carrying a laptop to the job site.
2. Confirm Invoice Receipt
Within 24 hours of sending your invoice, confirm that the right person received it and that all information is correct. This simple step prevents invoices from sitting in the wrong inbox or being returned for corrections weeks later.
3. Submit Complete Documentation
Incomplete invoices get bounced back, costing days or weeks. Before submitting, verify you've included all required backup: signed daily reports, material receipts, lien waivers, and any GC-specific forms.
4. Build Relationships with AP Departments
Get to know the accounts payable team at your top clients. Understanding their process, their schedule, and their pain points helps you submit invoices that flow through their system smoothly.
5. Use Payment Prediction
AI-powered payment prediction tools analyze your clients' historical payment patterns and give you early warning when a payment is likely to be late. This lets you follow up proactively instead of reactively.
6. Automate Your Follow-Up
Set up automated reminders that escalate over time. A friendly email at day 7, a text at day 14, and an AI-assisted phone call at day 21 keeps your invoice at the top of the pile without requiring your personal time.
7. Offer Multiple Payment Methods
Make it as easy as possible for clients to pay you. Accept ACH transfers, credit cards, and online payments in addition to checks. Each barrier you remove accelerates payment.
8. Negotiate Progress Payments
For projects longer than two weeks, negotiate progress payments tied to milestones. This converts one large, delayed payment into several smaller, timely payments that keep your cash flow healthy.
9. Screen Your Clients
Before taking on new work, research the client's payment history. GC scoring platforms aggregate payment data from thousands of subcontractors to give you an accurate picture of how a contractor treats their subs financially.
10. Protect Your Legal Rights
File preliminary notices and track lien deadlines on every project. Clients who know you're serious about your rights tend to prioritize your payments. It's not adversarial; it's professional.
The Compound Effect
Each of these strategies individually might save you a few days. Combined, they can cut your average payment timeline in half. Subcontractors who implement all ten consistently report average days to payment of 15-20 days, compared to the industry average of 83 days.