NUMBER SEVEN – Following the housing bubble burst in the early 2000’s, many banks crossed lending and lines of credit for construction off their offerings – or, at least, dramatically tightened processes. Many subcontractors went out of business due to lack of payment. Material providers – hurt badly from uncollectable receivables – hardened practices to reduce available trade credit for contractors and subs. Risk reduction for all these companies meant cutting back expensive labor and being more selective picking risky projects. The construction job market became so unattractive that some university construction management schools lost 90% of their enrollment. As work demand is now increasing, cautious subs and material providers are more careful to increase respective payrolls and lines of credit. There may be a legitimate shortage of labor in some areas – especially young, skilled labor – but there are also few companies that seem overly anxious to repeat the payment-pain of the early 2000’s. Fix payment and you fix labor?
What is BuildPay?
BuildPay uses financial technology that connects the entire payment chain, enabling fast, direct payments, quicker build times (encouraged by better payments), and better material pricing (made possible by guaranteed payments). Construction the way it should be. #GotPaid