{"id":163720,"date":"2026-08-12T13:02:38","date_gmt":"2026-08-12T12:02:38","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=163720"},"modified":"2026-08-12T13:44:22","modified_gmt":"2026-08-12T12:44:22","slug":"new-research-exposes-cost-construction-finance-teams-outdated-payment-processes","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/digital-construction-news\/new-research-exposes-cost-construction-finance-teams-outdated-payment-processes\/163720\/","title":{"rendered":"New research exposes the cost to construction finance teams of outdated payment processes"},"content":{"rendered":"

With the construction industry shifting from traditional, linear processes to highly integrated, data-driven and multidisciplinary project execution, finance professionals are under heightened pressure to meet tight deadlines, maintain contractual fidelity and ensure financial prudence<\/h2>\n

To shine a spotlight on the challenges they\u2019re facing, application for payment software<\/a> provider Payapps surveyed senior financial leaders across the UK. The results emphasise the challenge of using traditional, fragmented systems and the importance of leveraging technology to meet the evolving role of construction finance.<\/p>\n

Intensifying demands placed on finance teams in construction businesses mean the role is as much about control and confidence as it is managing productivity and efficiency across high-volume subcontractor payments and mitigating risk across compliance and cashflow.<\/p>\n

However, it is clear the size of finance teams isn\u2019t scaling with these heightened demands. Results show construction organisations manage around 210 subcontractors on average \u2013 but just 5 people work in their subcontractor ledger or finance teams. This perhaps explains why 46% of respondents state an increased workload is the biggest challenge they face.<\/p>\n

The drive to increase transparency<\/h3>\n

With the construction industry accounting for nearly one in five UK insolvencies<\/a> and around 70% of firms across the built environment reporting regularly being paid late, the Fair Payment Code (FPC) was introduced to combat the rising number of late payments and increase accountability. While entirely voluntary, 71% of those surveyed indicate their companies are signatories of the FPC, with supply chain risk the key driver behind this commitment.<\/p>\n

However, results show the maximum proportion of invoices paid within 30 days is 80% and just 15% of those surveyed pay more than half of their invoices within this period. This indicates that none of the respondents who are signatories would qualify for the FPC\u2019s Bronze, Silver or Gold awards, which require a contractor to pay at least 95% of invoices to small businesses within 30 days \u2013 perfectly illustrating the scale of the challenge facing the industry.<\/p>\n

Disputes and adjudications<\/h3>\n

Adjudications remain a major hurdle for finance professionals in the construction industry, with King\u2019s College London<\/a> reports revealing 2,264 adjudication referrals were placed in 2024 \u2013 a 9% increase on the previous year.<\/p>\n

This is reflected by the survey, with respondents reporting an average of 7 subcontractor adjudications over the past 3 years, and average legal costs of around \u00a32m.<\/p>\n

Notably, just over a fifth of respondents indicate that:<\/p>\n