Protect Your Construction Business from Payment Delays and Customer Insolvency
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Our international team of trade experts is here to help. Contact us to learn more about our coverage options for the Construction Industry or request a free, no obligation quote that includes credit reports for your largest trade partners.
Construction Industry
Construction is a major contributor to the U.S. economy, and remains a key driver of economic growth and faces some of the highest payment risks in the U.S. economy. It rises and falls with the economy, so when the economy slows, residential and commercial construction also tanks. This is causing widespread concern about rising costs, labor shortage and supply chain disruptions. Long project cycles, tight margins, and unpredictable customer payment behavior make your accounts receivable vulnerable.
Planning, building materials and construction processes must all change comprehensively. Supply chains have to be rethought, and an understanding of the materials required for a life-cycle approach will become crucial. In which, firms could ensure a stable ground of security being managed and protected by credit insurance.
Trade credit insurance helps construction companies protect cash flow, reduce bad‑debt losses, and grow safely—even in volatile market conditions.
Curious About Pricing?
Atradius is here to help. Contact us to learn more about our coverage options or request a free, no obligation quote that includes credit reports for your largest trade partners.
The construction industry is notoriously slow to pay vendors. Contracts are often structured around milestone payments, and when projects are delayed, payments are delayed with them. In 2026, nearly two-thirds of contractors report at least one project canceled, scaled back, or postponed due to high financing costs and funding uncertainty — compounding receivables risk at every level of the supply chain.
Labor shortage has become a serious and intensifying issue. The industry requires an estimated 499,000 additional workers in 2026, up from 439,000 the prior year. Tight labor markets, lack of a skilled workforce, and rising wage costs are creating pressure for builders across the country — and labor cost overruns directly affect a customer’s ability to pay on time.
Due to ongoing logistical disruptions, there has been a reduction in direct work productivity. Between staggered shift assignments, reduced crew sizes and increased personal protective equipment (PPE) requirements, the construction sector is seeing the impact of delays and shortages has on productivity.
Tariffs, reconfigured sourcing strategies, and elevated freight costs continue to pressure the supply chain. Long lead times persist on switchgear, transformers, specialty HVAC equipment, and other key components — affecting delivery timelines and increasing costs. With contractor insolvencies rising alongside material costs, the risks to your accounts receivable are higher than ever
Atradius has given us peace of mind to take on customers who we haven’t had past experiences with.
Benefits to Credit Insurance
Trade credit insurance is a risk management tool that can help protect your company’s commercial accounts receivable from the devastating effects of loss caused by a bankruptcy or protracted default of your buyers. No company wants to face the unknown. At Atradius, we give our clients peace of mind knowing that their policy protects them from a customer’s sudden inability to pay. Especially in an industry that must adhere to high-cost environmental regulations, trade credit insurance can help with cash flow and to ensure companies are financially stable.
Atradius analyzes industry trends and the risk of every buyer to ensure you are working with stable customers. If a previously stable customer starts showing signs of deteriorating payment trends, Atradius alerts you right away so you can take steps to protect and insure your accounts receivable. By evaluating the supply chain from every angle Atradius can alert clients to trouble coming down the pipeline before there is a loss.
Companies in the midst of an intense growth phase may need to put up accounts receivable as capital to receive additional funds from a bank. Having a trade credit insurance policy with Atradius that mitigates your risk means banks are more comfortable loaning the funds you need. In 2026, with project funding uncertainty a leading cause of construction delays, insured receivables provide lenders with the confidence to support your continued growth.
Atradius can offer companies a team of experts to support their trade credit insurance needs. Atradius is a global company with a presence on every continent. With innovative services and practical tools to manage a company’s receivable and build the foundation for solid business growth and success.
Get Your Questions Answered or Request a Quote
Atradius is here to help. Contact us to learn more about our coverage options or request a free, no obligation quote that includes credit reports for your largest trade partners.