Article
Accelerating Payments and Strengthening Vendor Relationships in Construction
Chapter 1
Payment Delays: A Financial Bottleneck in Construction
The movement of money is just one piece of a much larger puzzle in construction. The real challenge lies in the web of interconnected processes—payment approvals, documentation, compliance management, and communication—everything must align perfectly. If these steps aren’t efficiently managed, it creates bottlenecks that risk project timelines, vendor relationships, and overall project health.
88% of construction companies report struggling with late payments according to the Construction Cash Flow Payment Report from Levelset (now Procore), and there are many reasons behind the problem. Each invoice requires supporting documentation—from signed lien waivers and insurance certificates to change order approvals—creating significant friction. With manual processes still widespread, errors and delays are inevitable, and they significantly strain vendor relationships.
To make matters worse, finance teams often spend significant time each month managing disbursements to vendors. This inefficient, manual process leaves little room for proactive financial management, further escalating the cycle of delays and frustration.
Chapter 2
The Real Payment Process: Much More Than Issuing Checks
Managing payments in construction involves a lot more than simply disbursing funds. For each invoice, supporting documentation is required—lien waivers, insurance certificates, materials backup, and internal approvals. Without an integrated system, these documents often get lost in email threads or spreadsheets, making it difficult to track what’s missing or out of compliance.
“With Procore, trades can submit their invoices electronically directly into the system with a few clicks of a button and a bit of review.”
Kevin Morris
CFO
JBPA Developments Inc.
That’s where Procore Pay comes in, simplifying and unifying the process to give both finance teams and subcontractors visibility into the payment cycle. By integrating these financial workflows, teams can track invoices, lien waivers, and compliance documents all in one place, helping ensure a smoother, faster payment process.
Chapter 3
Procore’s Solution: Streamlining Payment Workflows and Strengthening Relationships
The key to reducing payment delays and strengthening vendor relationships lies in connecting the dots between invoicing, approvals, and documentation. Procore provides an integrated platform that tracks and manages each step, helping ensure that payments are processed quickly and accurately—without the bottlenecks caused by manual review steps or disconnected approval processes.
The core of the solution lies in the integration of change management with job costing. With Procore, change orders and cost adjustments are captured seamlessly, helping prevent delays from ripple effects. Plus, with Procore, vendors can submit invoices directly through the platform, and automated workflows handle routing, approvals, and compliance checks—so vendors aren’t asked to resubmit multiple times, reducing administrative overhead.
Chapter 4
The Impact: Faster Payments, Stronger Relationships
By connecting payment processes across the project lifecycle—from field operations to back-office teams—Procore delivers measurable improvements in key areas. Here are just a few of the results from the Procore ROI report that reflects the opinions of the surveyed 2,687 Procore customers from around the globe.
Faster Payments: 73% of Procore customers report improved tracking and management of project costs. With automated workflows and centralized data, payment cycles are accelerated, helping ensure that subcontractors are paid promptly, maintaining healthy cash flow across the project.
“In my previous lives in construction companies, billing was a major event. It would take two weeks, a month at least, to get invoices out. Now for us, if we get things lined up in advance and use Procore appropriately, invoices can be out in three days, which saves us a lot of time, gets money in our jeans faster and gets our valuable trades paid faster as well.”
Kevin Morris
CFO
JBPA Developments Inc.
Improved Vendor Relationships: With streamlined approval workflows and clear, predictable payment schedules, Procore helps maintain trust with vendors, fostering stronger relationships and reducing friction on future projects. 77% of customers report that Procore has helped improve their vendor or client satisfaction.
“For us, we bill probably about $10 million of revenue every single month. So, every day that's delayed, that means there's lots and lots of trades who aren't getting paid on time, which means their employees aren't getting paid on time, their suppliers aren't getting paid on time and it slows down everything. When you get cash into trades hands, it usually means the project gets done faster.”
Kevin Morris
CFO
JBPA Developments Inc.
Reduced Risk of Payment Disputes: With automated holds and built-in audit trails, Procore helps minimize the risk of overpayment or missed payment deadlines. By ensuring that all payment-related documentation is centralized, financial teams can maintain control and visibility, helping reduce the likelihood of disputes or delays in payments. 68% of Procore customers report that they have improved their ability to track payments and have confidence in cash flow and 80% report that they have more protection in a litigation scenario with the data they are tracking / capturing.
Chapter 5
Financial Control and Strategic Payment Flexibility
As the construction industry continues to grow, the demand for better financial oversight will only increase. With rising material costs, labor shortages, and tighter project timelines, construction firms need systems that enable faster decision-making and predictable cash flow.
Procore’s ability to integrate payment workflows and financial oversight into a single platform gives teams the clarity and control they need to accelerate payments, strengthen vendor relationships, and manage project finances more efficiently. Procore Pay not only allows teams to process payments faster but also gives them the flexibility to offer early payment options, ensuring that vendors have the cash flow they need to continue their work on time.
In the fast-paced world of construction, payment clarity and financial transparency are not just nice-to-haves—they are competitive advantages. By standardizing payment processes, improving financial oversight, and strengthening relationships with vendors, construction teams can ensure smoother, more efficient project delivery and protect the bottom line.