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
| Metric | Construction Tech | GovTech |
|---|---|---|
| Monthly churn | 2.2% | 0.8% |
| Annual churn | 23.6% | 9.2% |
| Median ARPU | $220 | $500 |
| Typical customer base | 100-5,000 | 50-500 |
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%
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%
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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