If it feels like you’re getting hit with a new supplier price increase every week, you’re not imagining it. And while most of us hoped post-COVID volatility was behind us, a new wave of tariffs is changing that outlook.

If you’re bidding or halfway through a job, this matters. Here’s what you need to know and what to do now.

The Materials Most at Risk

• Steel prices are up 15% to 25% since January. Rebar, structural, and mill product costs are all affected. Tariffs on Chinese and Mexican imports are adding pressure.

• Aluminum: Curtainwall, storefront, and window systems are up 8% to 10%. Imported aluminum products are expected to rise further if tariffs expand.

• Canadian lumber is seeing 10% to 15% price hikes in anticipation of new tariffs. Suppliers are already raising prices before those go into effect.

• Contractors are reporting weekly increases in copper pricing, impacting wire, conduit, and plumbing rough-ins.

• Piping, ductwork, panels, and HVAC systems may follow as tariffs and metal-based cost shifts ripple through supply chains.

In plain terms? If you're a sub bidding jobs 60–90 days out, these moves can kill your margin fast. If you're a GC, your bids just got riskier. And if you're on the finance side, forecasting just got fuzzier.

What You Can Do

1. Lock in pricing when you can, don’t assume today’s number will hold. If you can pre-purchase or negotiate pricing early, do it.

2. Review your contracts for escalation clauses, force majeure language, and tariff-related protections.

3. Know where your key inputs are coming from. If you're relying on imports, you need a backup plan now.

4. Watch supplier terms Some suppliers are using SPA clauses or language that lets them change pricing at time of shipment, not when you ordered.

5. Shorten your bid validity windows. Reduce risk by limiting your quote windows.

6. Over communicate with your partners.

Want to stay ahead of material price swings? Sign up for our free materials price tracker. We’ll send regular updates on the materials you care about, so you can make timely, informed decisions before prices shift.

The construction industry is at a crossroads. While projects grow in scale and complexity, the financial and administrative processes supporting them remain stuck in the past. From contract management to payments and lien waivers, manual processes and fragmented communication cost the industry billions. But the industry isn’t sitting still.

At BuiltWorlds 2025 Fintech Conference, leaders in fintech, construction, and lending laid out a clear vision: automation, real-time data, and trust-driven financial systems will define the next decade.

AI & Contract Management

Managing Contracts and Certificates of Insurance (COIs) is one of the most tedious and error-prone processes in construction. Every general contractor has unique requirements, and ensuring that COIs match job-specific criteria often requires manual verification.

The industry is pushing toward automation. The vision? AI that scans contracts, extracts key requirements, and auto-verifies COIs against those terms. Experts predict that in the next 5 years, contractors will rely on AI-driven underwriting to instantly approve or flag compliance issues, reducing the administrative burden on risk management teams.

Payments & Invoice Processing: Where the Industry is Losing Millions

A case study from Skanska revealed just how broken invoice processing is at scale:

• 60 invoices per day require three full-time staff to process.

• A 43-person project control team is buried in administrative tasks.

• Approval workflows are scattered across individual email inboxes, delaying payments when key people are unavailable.

Most GCs still rely on Excel-based pay applications and manual verification between project engineers and project control teams. The result? Invoices stall, payments get delayed, and subcontractors bear the cash flow burden.

The industry is moving toward digital solutions, and the fix is clear:

• Centralized dashboards for invoice tracking and real-time processing.

• Automated reminders so approvals don’t stall when a PM is unavailable.

• Mobile approvals that let project managers approve from the job site.

• Digital payments that remove the last-mile issue of physical checks.

The goal is simple: eliminate manual bottlenecks and get money flowing faster.

Breaking Down Payment Barriers

Delayed payments remain one of the biggest threats to subcontractor survival.

• 90+ day payment terms are still the norm and getting worse.

• Enterprise material suppliers want to offer trade credit, but they need visibility into project history and financials.

• Many subcontractors can’t pay their suppliers before they get paid themselves, creating a constant cash flow crunch.

Fintech is finally addressing this gap. Embedded financing solutions like early payment programs, invoice financing, and materials financing are giving subcontractors access to working capital without the friction of traditional lending.

Where Construction Finance is Headed

The industry’s biggest challenges: cash flow constraints, manual verification, fragmented communication, and inefficient payment processing aren’t new, but the solutions are.

Companies that invest in automation, digital payment processing, and AI-driven contract management will be in a stronger position to scale operations, mitigate risk, and improve profitability. Those that don’t will continue to struggle under the weight of administrative inefficiencies.

Technology isn’t just changing how construction projects are built; it’s redefining how they’re financed.

In a perfect world, contractors get paid on time. Invoices are processed smoothly, retainage is released when it should be, and suppliers don’t demand upfront payment before the job is even finished.

But that’s not the reality. Trade contractors need solutions. They need cash—now.

Long payment cycles, material costs, and slow-moving retainage lock up capital, making it harder to cover payroll, take on new projects, or even stay afloat. Let’s break down the biggest cash flow killers in construction and how forward-thinking contractors are solving them.

The Biggest Cash Flow Problems in Construction

1. The 90+ Day Payment Nightmare

Most contractors don’t get paid when they send an invoice. Developers and GCs stretch payments out 60, 90, even 120 days, while payroll and suppliers need money today.

Solution: Instead of waiting, use invoice financing to unlock cash from unpaid invoices. Negotiate better terms with GCs and suppliers to keep projects moving.

2. Change Orders That Wreck Cash Flow

Change orders increase project scope and cost, but payments for them often get delayed or disputed.

Solution: Make change order payment terms airtight in contracts and use cash flow tracking tools to avoid funding project overages out of pocket.

3. Material Costs That Hit Before Payments Do

Suppliers need to be paid upfront or within 30 days, but contractors won’t see revenue from those materials for months.

Solution: Use material financing to extend payment terms, keeping cash in your business while securing what you need to build.

4. Retainage That’s Always Just Out of Reach

GCs and owners typically hold back 5-10% of every payment until project completion, tying up thousands (or millions) of dollars for months.

Solution: Leverage short-term financing to smooth out cash flow while waiting for retainage to clear.

5. No Visibility into Cash Flow

Too many contractors rely on outdated spreadsheets, missing invoices, or last-minute credit lines to patch together financing. This leads to overdrafts, missed payments, and cash crunches.

Solution: A cash flow management system that centralizes invoices, payables, and financing options gives you real-time control over your business’s financial health.

Fixing Cash Flow with BuildrFi

If long payment cycles are holding your business back, BuildrFi is built for you.

✅ Get paid faster 
✅ Extend material payment terms so cash isn’t tied up
✅ Track everything in one place: invoices, payables, and financing

If cash flow is holding back your business, it’s time to take control.