Portuguese Construction Sector Faces Severe Payment Delays, Intrum Report Reveals
A new statistical analysis of business-to-business payment practices in Europe has identified the construction sector in Portugal as a critical area of concern, with average payment times significantly exceeding the national average. The European Payment Report 2025, a study conducted by financial services company Intrum, reports that while the average payment term across all Portuguese industries remains stable at 60 days, the construction sector experiences an average of 81 days. This delay is 34% longer than the national mean, indicating substantial liquidity challenges within the industry.
The methodology for the report involved surveying thousands of companies across Europe to gather data on payment behaviors, including offered credit terms and actual payment times. The source of the data, Intrum, is a leading credit management services group, and its annual report is a key benchmark for understanding corporate financial health. The findings for Portugal highlight a stark contrast between different sectors. While the real estate sector was noted for its efficiency, with 67% of companies reporting receipt of payments in under 50 days, the construction sector's performance was the most problematic of all industries surveyed in the country.
The specific numerical findings from the report paint a concerning picture for construction firms. A significant portion of the sector, 31% of companies, reported waiting between 101 and 200 days to receive payments due. This long payment cycle can place immense pressure on the cash flow of contractors and suppliers, impacting their ability to manage operational costs, pay employees, and start new projects. The telecommunications sector was also highlighted with similar, albeit slightly less severe, issues, where 11% of payments surpass the 100-day mark. These statistics point to a systemic issue of late payments that could have cascading effects on the broader economy and the viability of development projects.
The geographic breakdown was not specified within the construction sector itself, but the report covers the entire national territory of Portugal. The implications are country-wide, affecting urban development in hubs like Lisbon and Porto as well as projects in other regions. The time period for the data collection was throughout the first half of 2025, providing a current snapshot of the payment landscape. When compared to the previous year's report, the payment 'gap'—the difference between agreed-upon terms and actual payment time—has worsened, increasing from 15 to 18 days for B2B transactions in Portugal.
Industry experts have not yet formally responded to the report's findings, but trade associations for the construction sector have previously voiced concerns over tight margins and the impact of rising material costs. These payment delays add another layer of financial risk for companies in the sector. In response to these challenges, the report notes that Portuguese companies are increasingly adopting risk mitigation strategies. The use of pre-payment is the most common tactic, reported by 47% of firms. There is also a growing reliance on bank guarantees, which increased from 19% to 29% of companies, and an investment in data analytics to better forecast payment behaviors.
The government and regulatory bodies have not issued a direct response to this specific report, but the issue of late payments is a recurring theme in European business policy discussions. The data suggests that existing regulations may not be sufficient to ensure prompt payment within the construction industry. The report concludes by noting that while many companies are investing in technology to improve their invoicing and payment processes, the underlying culture of late payments in certain sectors remains a significant hurdle to financial stability and growth. Future reports will continue to monitor these trends.
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