This article is sponsored by GCPay.
In the construction industry, the status quo can often feel like a safety net. Many GCs cling to familiar processes, believing that if it isn’t broken, there’s no need to fix it. But this mindset can create a significant barrier to growth and efficiency, particularly when it comes to payment systems. The industry is at a turning point where embracing a mindset shift is not just advantageous, but it’s essential.
The construction sector has made remarkable strides in adopting technologies like AI and 3D modeling, yet back-office payment processes remain stuck in the past. Despite the digital transformation sweeping across other departments, payment systems are often seen as “good enough.” This complacency is a costly mistake that creates room for inefficiencies. It’s time for a new perspective: viewing payment automation not as an expense, but as a strategic investment that unlocks efficiency and improves compliance.
The Challenges With Traditional Payment Systems
For decades, construction companies have relied on manual processes: paper checks, spreadsheets, and double-entry accounting. While these systems may seem reliable, they are inherently flawed and risk prone. Errors are common when schedules of values, change orders, and lien waivers are handled manually.
Nonetheless, many GCs today continue to rely on such outdated systems, where the problems are exacerbated by the scale of modern projects. With hundreds of subcontractors involved, each billing cycle can involve an overwhelming number of manual steps, increasing the potential for mistakes and delays.
A recent industry report revealed that 54% of GCs experience challenges related to change orders in subcontractor payments. Mike Milligan, Chief Growth Officer at GCPay, highlights the issue: “Many GCs still rely on physical checks, creating a time-consuming process prone to human error.” The impact? Payment delays strain relationships with subcontractors, disrupt project timelines, and ultimately lead to cost overruns. As the construction landscape grows more competitive, GCs can no longer afford these inefficiencies.
Why a Mindset Shift Is the Key to Progress
With automated solutions, there can be a 75% average time savings on payment applications.
The real obstacle to modernizing payment systems isn’t a lack of technology — it’s a resistance to change. This resistance is rooted in outdated beliefs that manual processes are “tried and true” and that technology investments in finance are a luxury rather than a necessity. However, this mindset is holding the industry back.
According to a recent survey, 65% of GCs reported gaps in their subcontractor management automation. Many still follow the outdated “check-for-lien-waiver” exchange, a manual practice that persists despite the availability of more efficient digital solutions.
For meaningful progress, GCs need to reframe their thinking. The first step is to recognize that automation is not an expense — it’s a catalyst for growth. By shifting from a reactive to a proactive mindset, GCs can view digital payment solutions as strategic investments that pave the way for smoother operations and stronger subcontractor relationships.
Practical Steps to Implement an Efficient Payment System
Changing your mindset is the initial step and pivotal moment when stagnation can transform into growth. Once GCs have shifted their mindsets on payment systems, the rest is comparatively straightforward.
Download this eBook to learn more and gain practical, self-directed steps help GCs to optimize their operations.