Getting paid as a general contractor
General contractors wait longer to get paid than almost any other trade. Average construction days sales outstanding runs from roughly 50 to 90 days, and 82% of contractors now wait more than 30 days for payment. Getting paid faster comes down to invoicing cleanly, chasing on a fixed schedule, and protecting your lien rights before the deadline passes.
How general contractors get paid late
Construction is structurally slow to pay, and it is getting slower. The industry's average days sales outstanding sits far above the roughly 60-day cross-industry figure, with studies putting construction DSO anywhere from 51 to 90 days, and some estimates as high as 94.
The money is not usually disputed. It is stuck in a chain: the owner pays the GC, the GC pays the subs, and every link adds delay, paperwork, and pay-when-paid clauses.
Why it hits general contractors harder
Two things make construction uniquely painful. First, retainage: a percentage of every payment application is withheld, often until the whole project closes out, which can be months or years after your work is done. Around 30 states regulate retainage on private projects, but the money still sits.
Second, lien deadlines. A mechanic's lien is the strongest collection lever a contractor has, but every state sets a hard clock on it, often 60 to 90 days from last furnishing labor or materials. Miss that window chasing politely and you lose your best leverage entirely.
The chase timeline that works for general contractors
Because the clock matters, contractors should chase faster and more firmly than most businesses. A practical timeline:
- On submission: confirm the pay application was received and ask who signs off.
- +7 days: firm follow-up referencing the application number and amount.
- +14 days: a call, then written confirmation of what was agreed.
- Before the lien deadline: a preliminary notice or notice of intent to lien, well inside your state's window.
- Last resort: file the lien, or send a certified demand letter.
See the full sequence in how to collect unpaid invoices.
How Owendly collects for general contractors
Owendly chases every open pay application on the trade schedule, in your own voice, across email and text. It reads replies, sets up payment plans on retainage releases, and generates a certified demand letter as the final step. It keeps your reminder history and proof of delivery in one place, which is exactly the documentation a lien or a small-claims filing needs.
Frequently asked questions
How long do contractors wait to get paid?
On average, far longer than other businesses. Construction days sales outstanding runs from about 50 to 90 days, and 82% of contractors now wait more than 30 days for payment. The delay comes from the payment chain, retainage, and pay-when-paid clauses, not usually from disputes over the work itself.
What is retainage and how does it affect getting paid?
Retainage is a percentage of each payment withheld until a project is complete or nearly so, often 5 to 10 percent. It protects the owner but starves the contractor, since that money can sit for months after your work is finished. Roughly 30 states regulate retainage on private projects, but the delay remains a major cash-flow drain.
When should a contractor file a mechanic’s lien?
File before your state’s deadline, which is typically 60 to 90 days from when you last furnished labor or materials on the project. A lien is a contractor’s strongest collection lever, so track the deadline from day one and send a preliminary notice or notice of intent well inside the window rather than risk losing the right.
Can software help a construction business get paid faster?
Yes. Automated chasing sends firm reminders on a fixed schedule, calls when needed, and keeps the documented trail a lien or small-claims case requires. Owendly runs the trade version of that chase, treating lien deadlines as hard dates and escalating to a certified demand letter, so applications do not sit forgotten while the clock runs.
Stop chasing invoices by hand
Owendly runs this whole process for you: reminders in your voice, replies read and handled, calls, and a certified demand letter as the last step.
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