How to Deal with Extended Lead Times and High Material Costs
Abstract
Construction material costs are rising along with high fuel prices, affecting lead times and project success. The wait for materials forces specialty contractors into a tight spot, removing the ability to guarantee deadlines and the on-time completion of projects. In addition to the recent material cost hikes, slow payment has long plagued the entire construction pipeline. According to the 2022 Construction Cash Flow & Payment Report, construction businesses reported slow payments contributed to wasted resources, reduced profit, and failure to meet payroll. At Levelset, we are interested in learning what the construction industry would look like if specialty contractors didn't have to act like the bank to cover the material costs at the start of projects. Levelset buys materials upfront from your supplier of choice who delivers them to the job site, and specialty contractors get up to 120-day payment terms. Having a financial partner provides breathing room when needed most because uncontrollable circumstances shouldn't cost specialty contractors their livelihoods.
