Subcontractors Grapple with Rising Costs, Advocate for Quick Pay

Quick pay programs for subcontractors, set up through general contractors, alleviate cash flow challenges and stabilize construction projects, experts say.

EL PASO , TX, UNITED STATES, April 2, 2026 /EINPresswire.com/ -- Leading construction quick pay company Viva Capital says construction subcontractors are facing financial challenges due to a mix of rising costs and industry-standard payment terms, and are increasingly advocating for quick pay programs. Full coverage of the topic is available in “Why Construction Subcontractors Should Advocate for Quick Pay Programs,” now live on VivaCF.net.

RISING COSTS AND SLOW PAYMENTS CREATING SUBCONTRACTOR CASH FLOW CHALLENGES
Construction subcontractors face numerous challenges that make it difficult for them to cover their own expenses.
> Materials Costs Are Up: Since spiking in 2022, non-residential materials costs have remained high, up 40 percent from pre-pandemic levels.
> Labor Costs Are Rising: In just five years, construction wages surged more than 21 percent, further straining subcontractors.
> Most Subcontractors Paid Slow: Two-thirds of subcontractors say general contractors (GCs) are paying them slowly.
> Long Waits Expected: Subcontractors now wait an average of 56 days for payment.

“Long payment cycles in the construction industry have always created challenges for subcontractors, but the rising costs are making it even more difficult to continue shouldering the burden,” explains Greg DiDonna, President and Partner of Viva Capital. “The recent surge in advocacy for subcontractor quick pay programs reflects the increasing pressure they face.”

SUBCONTRACTORS THAT ADVOCATE FOR QUICK PAY CREATE A WIN-WIN SITUATION
DiDonna says more subcontractors are inquiring about quick pay programs that eliminate lengthy waits. However, he notes that these must be set up by the general contractor before subcontractors can use them. Because of this, many are actively advocating for these programs with GCs and having strong success because they benefit everyone on the project.
> Payment Acceleration: With quick pay, subcontractors can receive payment on the day they submit proof of completed work.
> GC Control: General contractors retain control of payments, releasing funds only when their internal verification process is complete.
> Timeline Adherence: Because quick pay smooths out cash flow for subcontractors, projects stay on track, and quality subcontractors are retained.

“The general contractor pays nothing for this service, and it doesn’t impact their contracts, so it’s an easy win for everyone involved.” DiDonna adds.

Those interested in learning more about construction quick pay or who want to request a complimentary quote from Viva Capital may do so by visiting VivaCF.net.

ABOUT VIVA
Founded in 1999 in El Paso, Texas, and often regarded as one of the best factoring companies, Viva Capital Funding helps B2B businesses of all types accelerate cash flow through specialized funding solutions like invoice factoring, accounts receivable financing, and asset-based lending. Their simple qualification process makes it easy for small and mid-sized companies to secure vital funding, even without credit or time in business. Additional information is available at VivaCF.net.

Armando Armendariz
Viva Capital Funding
+1 915-615-6664
email us here
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