What is the typical timeframe for subcontractors to expect payment after the contractor is paid?

The typical timeframe for subcontractors to expect payment after the contractor is paid is often set at around 30 days. This standard aligns with general construction industry practices and is influenced by cash flow considerations and contractual agreements. Contractors typically require some time to manage their own financial obligations, which may include processing invoices, managing budgets, and ensuring that all aspects of the project are settled.

Although some contractual arrangements may expedite payment processes, the 30-day window is widely accepted as a reasonable period that balances the needs of both the contractor and subcontractor. It allows the contractor to ensure they have sufficient funds before dispersing payments to subcontractors, who also benefit from the predictability of the timeline.

While shorter payment intervals exist—like 7 days or immediate payments—they are less common and often depend on specific agreement terms or urgent circumstances. Thus, the option reflecting a 30-day timeframe effectively captures the more prevalent practice in the industry.