Construction Payment Statistics
Last updated: 2026-10-28 · 15 sourced statistics
Construction moves more money through more hands than almost any other industry, which is why payment timing is written into law. The Census Bureau estimates US construction spending at a seasonally adjusted annual rate of $2,203.1 billion in August 2026, and BLS counts about 8.36 million construction employees whose wages contractors must meet while waiting on progress payments. Prompt-payment statutes set the deadlines: federal agencies owe progress payments 14 days after a proper request, Texas owners have 35 days, and California and New York owners 30, with seven days for the contractor to pay its subcontractors in each. This page gathers the official figures, the statutory deadlines and the one vendor survey that estimates what slow payment costs.
Key takeaways
- US construction spending was $2,203.1 billion (seasonally adjusted annual rate) in August 2026, 1.7% below August 2025; three quarters of it was private.
- Construction employed about 8.36 million people in September 2026 (BLS, preliminary), with average hourly earnings of $41.69.
- Federal construction contracts: progress payments due 14 days after a proper request, and subcontractors paid within 7 days of the prime contractor receiving payment.
- Late-payment interest is set by statute: 2% a month in California, 1.5% a month in Texas.
- In a vendor survey of 125 contractors, respondents attributed 14% of project costs to slow payment (Rabbet, 2025).
At a glance.
Every figure on this page in one table, each linked to its named source. Scroll down for the full context behind each number.
| Figure | What it measures | Source | Year |
|---|---|---|---|
| $2,203.1B | US construction spending was estimated at a seasonally adjusted annual rate of $2,203.1 billion in August 2026, 0.9% above July and 1.7% below August 2025. | U.S. Census Bureau, Monthly Construction Spending, August 2026 (CB26-158) | 2026 |
| $1,655.3B | Private construction accounted for $1,655.3 billion of the August 2026 annual rate and public construction for $547.8 billion, so about three quarters of construction work is paid for by private owners. | U.S. Census Bureau, Monthly Construction Spending, August 2026 (CB26-158) | 2026 |
| -3.1% | Construction spending in the first eight months of 2026 totalled $1,450.4 billion, 3.1% below the same period of 2025 ($1,496.6 billion). | U.S. Census Bureau, Monthly Construction Spending, August 2026 (CB26-158) | 2026 |
| 8.36M | US construction employment was about 8.36 million in September 2026 (preliminary), up from 8.26 million a year earlier (BLS series CES2000000001). | U.S. Bureau of Labor Statistics, Current Employment Statistics (construction, seasonally adjusted) | 2026 |
| $41.69/hr | Average hourly earnings of all construction employees were $41.69 in September 2026 (preliminary), up from $40.01 a year earlier: the payroll a contractor carries while a progress payment is outstanding (BLS series CES2000000003). | U.S. Bureau of Labor Statistics, Current Employment Statistics (construction, seasonally adjusted) | 2026 |
| 14 days | On federal construction contracts, the due date for progress payments is 14 days after the designated billing office receives a proper payment request; final payments are due on the later of the 30th day after a proper invoice or after government acceptance. | Federal Acquisition Regulation 52.232-27, Prompt Payment for Construction Contracts (eCFR) | 2026 |
| 7 days | Federal prime contractors must include a clause in each subcontract to pay subcontractors for satisfactory performance no later than 7 days after receiving payment, with an interest penalty for late payment. | Federal Acquisition Regulation 52.232-27, Prompt Payment for Construction Contracts (eCFR) | 2026 |
| 30 days | In California, unless otherwise agreed in writing, an owner must pay an undisputed progress payment within 30 days of the direct contractor's notice demanding payment, or owe a penalty of 2% per month on the amount wrongfully withheld (Civil Code section 8800). | California Legislative Information, Civil Code section 8800 | 2026 |
| 2%/month | California contractors must pay subcontractors within 7 days of receiving each progress payment, unless otherwise agreed in writing; a violation carries a penalty of 2% of the amount due per month (Business and Professions Code section 7108.5). | California Legislative Information, Business and Professions Code section 7108.5 | 2023 |
| 35 days | In Texas, an owner must pay a contractor's written payment request no later than the 35th day after receiving it, and the contractor must pay its subcontractors within 7 days of receiving the owner's payment (Property Code section 28.002). | Texas Constitution and Statutes, Property Code chapter 28, Prompt Payment to Contractors and Subcontractors | 2025 |
| 1.5%/month | Unpaid amounts under the Texas prompt pay law accrue interest at 1.5% each month from the day after payment is due (Property Code section 28.004). | Texas Constitution and Statutes, Property Code chapter 28, Prompt Payment to Contractors and Subcontractors | 2025 |
| $150,000+ | New York's private construction prompt-payment law requires owners to pay within 30 days of approving an invoice and contractors to pay subcontractors within 7 days of receiving good funds, for projects of $150,000 or more (General Business Law sections 756 and 756-a). | New York State Senate, General Business Law section 756-a | 2023 |
| 5% | On private projects covered by New York's prompt-payment law, owners and contractors may retain no more than 5% of the contract sum as retainage (General Business Law section 756-c). | New York State Senate, General Business Law section 756-c | 2023 |
| 14% | In a vendor survey of 125 US contractors (September 2025), respondents attributed 14% of total project costs to slow, inconsistent payment, which Rabbet equates to $299 billion on a $2.139 trillion market. | Rabbet, 2025 Construction Payments Report (vendor survey) | 2025 |
| 88% | 88% of the contractors in the same vendor survey said they had declined to bid in the last year because of an owner's slow-pay reputation. | Rabbet, 2025 Construction Payments Report (vendor survey) | 2025 |
The statistics
US construction spending was estimated at a seasonally adjusted annual rate of $2,203.1 billion in August 2026, 0.9% above July and 1.7% below August 2025.
Source:U.S. Census Bureau, Monthly Construction Spending, August 2026 (CB26-158)2026
Private construction accounted for $1,655.3 billion of the August 2026 annual rate and public construction for $547.8 billion, so about three quarters of construction work is paid for by private owners.
Source:U.S. Census Bureau, Monthly Construction Spending, August 2026 (CB26-158)2026
Construction spending in the first eight months of 2026 totalled $1,450.4 billion, 3.1% below the same period of 2025 ($1,496.6 billion).
Source:U.S. Census Bureau, Monthly Construction Spending, August 2026 (CB26-158)2026
US construction employment was about 8.36 million in September 2026 (preliminary), up from 8.26 million a year earlier (BLS series CES2000000001).
Source:U.S. Bureau of Labor Statistics, Current Employment Statistics (construction, seasonally adjusted)2026
Average hourly earnings of all construction employees were $41.69 in September 2026 (preliminary), up from $40.01 a year earlier: the payroll a contractor carries while a progress payment is outstanding (BLS series CES2000000003).
Source:U.S. Bureau of Labor Statistics, Current Employment Statistics (construction, seasonally adjusted)2026
On federal construction contracts, the due date for progress payments is 14 days after the designated billing office receives a proper payment request; final payments are due on the later of the 30th day after a proper invoice or after government acceptance.
Source:Federal Acquisition Regulation 52.232-27, Prompt Payment for Construction Contracts (eCFR)2026
Federal prime contractors must include a clause in each subcontract to pay subcontractors for satisfactory performance no later than 7 days after receiving payment, with an interest penalty for late payment.
Source:Federal Acquisition Regulation 52.232-27, Prompt Payment for Construction Contracts (eCFR)2026
In California, unless otherwise agreed in writing, an owner must pay an undisputed progress payment within 30 days of the direct contractor's notice demanding payment, or owe a penalty of 2% per month on the amount wrongfully withheld (Civil Code section 8800).
Source:California Legislative Information, Civil Code section 88002026
California contractors must pay subcontractors within 7 days of receiving each progress payment, unless otherwise agreed in writing; a violation carries a penalty of 2% of the amount due per month (Business and Professions Code section 7108.5).
Source:California Legislative Information, Business and Professions Code section 7108.52023
In Texas, an owner must pay a contractor's written payment request no later than the 35th day after receiving it, and the contractor must pay its subcontractors within 7 days of receiving the owner's payment (Property Code section 28.002).
Unpaid amounts under the Texas prompt pay law accrue interest at 1.5% each month from the day after payment is due (Property Code section 28.004).
New York's private construction prompt-payment law requires owners to pay within 30 days of approving an invoice and contractors to pay subcontractors within 7 days of receiving good funds, for projects of $150,000 or more (General Business Law sections 756 and 756-a).
Source:New York State Senate, General Business Law section 756-a2023
On private projects covered by New York's prompt-payment law, owners and contractors may retain no more than 5% of the contract sum as retainage (General Business Law section 756-c).
Source:New York State Senate, General Business Law section 756-c2023
In a vendor survey of 125 US contractors (September 2025), respondents attributed 14% of total project costs to slow, inconsistent payment, which Rabbet equates to $299 billion on a $2.139 trillion market.
Source:Rabbet, 2025 Construction Payments Report (vendor survey)2025
88% of the contractors in the same vendor survey said they had declined to bid in the last year because of an owner's slow-pay reputation.
Source:Rabbet, 2025 Construction Payments Report (vendor survey)2025
When these numbers don't apply
Aggregate statistics hide a lot. Read these caveats before quoting a figure as if it describes your specific situation.
- Census construction spending is a seasonally adjusted annual rate for one month, with sampling error (August 2026: plus or minus 1.0% month on month). It measures the value of work put in place, not what contractors have been paid.
- BLS figures for September 2026 are preliminary and are revised in later releases.
- The statute summaries are simplified. Each law has exceptions, notice requirements and contract carve-outs (for example, New York's prompt-payment law covers only private projects of $150,000 or more and excludes most small residential work, and Texas allows different terms for some single-family residences). This is not legal advice; read the statute or ask a construction lawyer before relying on a deadline.
- Rabbet figures come from a payments-software vendor's online survey of 125 US contractors (97 general contractors, 28 subcontractors) in September 2025. The $299 billion is respondents' estimate of 14% of project costs applied to a $2.139 trillion market, not a measured cost.
- No official US statistic measures how long contractors wait to be paid. Industry DSO and payment-delay figures come from vendor surveys with small, self-selected samples.
How we compiled this data
Reviewed 2026-10-28. Spending figures are from the Census Bureau's 1 October 2026 construction spending release; employment and earnings are from the BLS public data API (series CES2000000001 and CES2000000003, September 2026 preliminary). Statutory deadlines were read in the official text: FAR 52.232-27 through the eCFR, California code sections on the Legislature's site (read through Internet Archive copies because the site blocks automated access), Texas Property Code chapter 28 (archived official PDF) and New York General Business Law on the New York State Senate site. For statutes, the year shown is the year of the official text we read. The one industry survey kept is a vendor survey quoted from the vendor's own report page. Earlier versions of this page cited a 2022 cost estimate, a roughly 90-day DSO figure, a payment-speed share, retainage norms and a 50-state lien statement linked to vendor and association homepages; these were removed or replaced because the linked pages did not state them.
We hand-collected each figure from its original publisher rather than recycling secondary round-ups, cross-checked the headline numbers against the source documents in 2026-10-28, and link every statistic to the report it came from so you can verify it yourself. Where a publisher issues annual updates, we cite the report edition and flag the year inline.
Frequently asked questions
How much is spent on construction in the US?
The Census Bureau estimated construction spending at a seasonally adjusted annual rate of $2,203.1 billion in August 2026: $1,655.3 billion private and $547.8 billion public. Spending in January to August 2026 was 3.1% below the same months of 2025.
How long does an owner have to pay a contractor?
It depends on the contract and the state. Federal agencies owe progress payments 14 days after a proper payment request. Texas owners have 35 days after a written request, California owners 30 days after a payment demand, and New York owners 30 days after approving the invoice on covered private projects of $150,000 or more.
How quickly must a general contractor pay subcontractors?
Within 7 days of receiving payment under the federal rule (FAR 52.232-27), California Business and Professions Code section 7108.5, Texas Property Code section 28.002 and New York General Business Law section 756-a, subject to each law's exceptions and any written agreement the law allows.
What interest can a contractor charge on a late construction payment?
Statutes set it in some states: 2% per month in California on progress payments wrongfully withheld, and 1.5% per month in Texas on amounts unpaid under the prompt pay chapter. Federal contracts use the Prompt Payment Act interest rate. Check the statute and your contract before adding interest to an invoice.
How much retainage can be withheld?
Rules vary by state and by public or private work. On private projects covered by New York's prompt-payment law, retainage is capped at 5% of the contract sum. Other states set different limits or none, so check the statute for the project's location.
What should a contractor put on an invoice to get paid on time?
Match the payment request to the contract: the billing period, work completed and stored materials, retainage withheld, the amount due now and the due date the contract or statute sets. Under the federal rule the payment clock runs from receipt of a proper payment request, and an improper one must be returned within 7 days with the reasons.
Put these figures to use
- Invoicing hub: Guides on writing invoices, payment terms and following up on unpaid bills.
- Late fee calculator: Work out monthly interest on an overdue invoice from the amount, rate and days late.
- How to invoice as a roofer: Deposits, progress payments and state rules for roofing invoices in Florida, Texas and California.
- Invoice late fee laws by US state: What California, Texas, New York and Florida statutes say about charging late fees.
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