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Construction Tech vs GovTech Churn Rate

Side-by-side benchmark comparison, updated March 2026.

GovTech has a lower monthly churn rate (0.8%) than Construction Tech (2.2%), a difference of 1.4 percentage points. GovTech median ARPU is $500 versus $220 for Construction Tech.

Head-to-head benchmarks

MetricConstruction TechGovTech
Monthly churn2.2%0.8%
Annual churn23.6%9.2%
Median ARPU$220$500
Typical customer base100-5,00050-500

Top construction tech churn drivers

  • Project completed and company downsized software stack33%
  • General contractor mandated a specific platform for the project24%
  • Field adoption failed due to mobile and offline limitations22%
  • Insufficient integration with estimating or ERP tools13%
Full Construction Tech benchmark

Top govtech churn drivers

  • Budget appropriation cycle not renewed for the software line item32%
  • Procurement rules required retendering after contract term27%
  • Elected official change shifted departmental priorities20%
  • Product failed FedRAMP, StateRAMP, or CJIS compliance audit13%
Full GovTech benchmark

Why govtech retains better than construction tech

The 1.4-point gap between GovTech and Construction Tech reflects differences in switching cost, value density, and purchase motivation. GovTech customers face higher integration and data-migration friction, which extends tenure. Construction Tech tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.

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