Some contractors claim they are boosting their bids anywhere from 5% to 10% to help absorb associated costs – one of which is slow-paying by their clients – a situational circumstance that is up 53% compared to 2021, according to a new report from Rabbet, based on a September survey.

They also have become "pickier when selecting bids because of increasing labor and supply prices," according to the report.

Rabbet said there were other ugly economic signs brought on by inflation and rising interest rates have direct impacts on the construction industry:

  • 37 percent of all respondents report that work has been delayed or stopped due to a delay in payments to crew members
  • 62 percent of general contractors incurred billing charges, financing charges, or other costs when floating payments to others
  • 5x increase in general contractors using retirement savings to float payments for their business

"As these realities set in, the implications for contractors grow tremendously," said Will Mitchell, CEO of Rabbet, in prepared remarks.

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