Check out the latest and greatest from the team at Rabbet.
How lenders and developers spend excessive time processing draws on construction projects, the inefficiencies inherent in current processes, and why embracing technology is crucial for streamlining operations and driving future success.
How data empowers commercial real estate developers to make better decisions and ultimately save money in various ways.
Our latest State of Construction Finance Report revealed how critical software adoption is for this industry. In a time when deal volume is down, industry leaders are investing their teams time in preparing for the future.
If you don’t have time to go through the entire of Rabbet’s 2023 State of Construction Finance Report yet, but you’re curious as to the findings, we’ve got you covered! Here is a summary of this year’s report.
To finance slow payments, the estimated overhead included in subcontractors’ bids is 2.75% and 5.81% for general contractors. This year’s report uncovered that slow payments to subcontractors and general contractors will create $136B in additional costs for the US Construction Industry in 2021.
General contractors and subcontractors estimate that the cost of floating payments for wages and invoices represents $136 billion in excess cost to the industry, a 36 percent increase from the cost reported in 2020. Findings indicate those costs are passed on to real estate developers and financiers in the form of project delays and higher bids from contractors.
