GC Webinar

Early Pay for GCs: Turn Your Payments into a Profit Center

Paying your subcontractors is the largest, most predictable cost you have. This session breaks down how the payments you are already making can work in your favor.

Dan Juliano, who runs Billd Predictable Pay, joins host Lydia Adams to explain what an early pay program actually is, how those same payments start creating margin, and what separates the programs that succeed from the ones that stall. It closes with the questions general contractors ask most.

In this session you will learn:

What an early pay program is, and how it fits the process you already run.
How the payments you already make can become a margin stream.
What separates programs that scale from the ones that stall.
Straight answers to the questions GCs ask most.

Key takeaways

Part 1

What is an early pay program?

Early pay does not change how you pay your subs, only when. It accelerates approved payments so subs can access their cash sooner instead of waiting on long terms. Subcontractors report an average of 51 days to get paid.

You stay in control. You decide which subs participate, which projects and invoices are eligible, and whether any request gets accelerated.
Little to no re-engineering. Submission, review, and approval stay the same. The one common change is paying electronically (ACH) if you pay by check today.
The timing is right. 83% of subcontractors worry about cash flow and 76% of GCs say a subcontractor’s working capital position affects a project’s success, yet only 24% of GCs offer early pay.

Part 2

How an early pay program creates margin

Subcontractor payments are the largest line in your cost base. Early pay turns that cost center into a margin stream.
Reduce your sub spend by roughly 1% through adoption and that 1% drops to your bottom line. On thin GC margins, moving from 4 to 5 is material.
You are not limited by your own cash. Fund it with your capital, a third party’s capital, or a hybrid, and adapt the mix over time.

Part 3

Setting up your program for success

Treat it as a program, not a toggle. Expect roughly 10 to 15 touches per sub, and make someone responsible, then compensate and measure them on adoption.
Pricing strategy drives adoption. Tiered, time-based pricing beats a flat take-it-or-leave-it rate.
Predictability matters. A consistent invoicing and approval cadence lets subs rely on early pay as a working capital tool.
Position it as a benefit, not a red flag. Framed well, early pay becomes a reason your best trade partners choose to work with you.
In-house or partner? Run an honest internal assessment of your technology, AP process, and capacity, then decide.
Start with a pilot. Pick motivated project teams and a champion, roll out a few projects, self-assess, and expand.

Q&A

Commonly asked questions

Do our preferred subs actually want this?

Cash flow needs are not a troubled-sub problem. They hit companies of every size, especially the ones investing to grow. You do not need 100% adoption to see the return.

Won’t subs just build the fee into their bids?

They already price the cost of slow, unpredictable payment into every bid. Early pay is typically cheaper than the alternatives they use, and it is off balance sheet.

Why would a sub pay a fee for money they are owed?

They are paying for accelerated cash flow, the same as any financing, only at a lower cost and without personal guarantees or new debt.

Isn’t it too risky?

Owner non-payment is extremely rare, and you control which subs, projects, and invoices are eligible. You can turn early pay off for a sub or project at any time.

Own capital or third-party capital?

There is no single right answer. It depends on the best long-term use of your cash, and you can start one way and bring in third-party funding later.

Meet the presenters

Dan Juliano

GM of Predictable Pay

Dan runs the Predictable Pay program at Billd. He has spent more than 20 years in fintech and supply chain finance designing working capital and supply chain finance programs, and now focuses entirely on the construction industry.

Lydia Adams

VP of Marketing

Lydia is VP of Marketing at Billd and hosted the conversation, bringing the industry perspective from years of working with subcontractors and general contractors.

See where your program stands

Whether you are running an early pay program today or thinking about building one, Billd can help you find the gaps and the upside.

Learn more about Billd Predictable Pay