Construction firms warned fragmented software systems are delaying payments

By Danny BallPublished On: June 11th, 2026Categories: Top Stories

Construction firms investing in digital technology risk undermining productivity and cashflow if key software systems cannot communicate effectively, according to payment application platform Payapps.

The company is urging contractors and subcontractors to move away from fragmented digital processes, arguing that better integration between enterprise resource planning (ERP), accounting and payment systems could improve financial visibility, speed up payment approvals and strengthen supply chain collaboration.

The warning comes as digital adoption across the sector continues to accelerate.

Research by Censuswide for PBC Today found that 63% of UK construction and engineering businesses plan to adopt a new ERP system within the next two years.

Construction software integration challenges persist

While investment in construction technology is increasing, Payapps argues that many businesses continue to operate multiple disconnected systems, creating inefficiencies across projects and supply chains.

Construction projects often involve a wide range of contractors, subcontractors and suppliers, making it difficult to standardise digital processes and share information consistently.

According to Payapps, fragmented systems can lead to:

Increased manual data entry
Reduced productivity
Delays in project decision-making
Payment bottlenecks
Higher compliance risks
Poor communication across project teams

The company notes that construction professionals already spend a significant proportion of their working time on administrative tasks, with disconnected systems adding further pressure.

Manual processes increase project risks

Payapps says reliance on spreadsheets, PDFs and paper records continues to create operational challenges across the sector.

Disconnected data can result in project teams working from outdated or conflicting information, increasing the likelihood of errors and costly rework once construction begins.

The issue also has implications for regulatory compliance, particularly as the industry adapts to stricter building safety requirements and the need to maintain a clear digital record of project information.

The company argues that inaccessible or incomplete data can make it more difficult for contractors and developers to demonstrate compliance while increasing the risk of unidentified issues affecting project delivery.

Delayed payments remain a supply chain concern

The company believes fragmented digital systems are also contributing to payment delays across the construction supply chain.

Where project information is stored across multiple platforms, contractors may struggle to verify completed work quickly, slowing the approval of applications for payment and delaying cashflow to subcontractors and suppliers.

The business argues that better integration between payment software and financial management systems could help reduce disputes and improve transparency.

Integrated construction software could improve efficiency

Payapps is encouraging contractors to adopt integrated digital platforms that connect payment applications with ERP, accounting and project management systems.

The company says creating a single source of project data can: