Typically, to get paid, the builder has to collect invoices and lien releases from all the sub-contractors and vendors and submit them to the lender / owner. Once submitted, the builder waits anywhere between few days to few weeks to receive funds. In the meantime, payment‐related inquiries from sub‐contractors keep coming in. Once funds are received, the builder has to again go through the invoices and pay the sub-contractors accordingly, making sure that there are enough funds in the bank account and no double-payments are made. For critical jobs, the builder may have to pay from their own pockets, even before getting lien releases, to avoid sub-contractors walking out on the job.
The builder must keep track of fund receipts from owner/lenders and ensure that there is money in the bank to cover checks issued to sub-contractors and vendors. These pass-through payments add significant Working Capital burden on the builder, without adding to profitability.
The builder ends up spending anywhere between ½ day to 1 day per week just on paperwork and payments - time that could have been better spent in growing the business.
Frequent negative interactions about paperwork and payment delays alienate the sub-contractors and vendors, key partners in the construction process, adversely affecting productivity and quality of construction.
Before the construction begins, we set up a funds disbursement plan that aligns with the project budget, and get it approved from all the stakeholders, including your lender (if any) and your prime contractor.
We directly pay the sub-contractors and vendor, at the request of the builder and hold funds in escrow during transit. A draw request goes through 3 stages.
Our modern, mobile-based eVouchers offer smooth workflow and anytime-anywhere capabilities, enabling the general contractor (GC) to submit a draw request in minutes directly from the jobsite. The GC does not have to go back to the office to create draw requests, or wait till end of the month to receive payments. This significantly accelerates the payment cycle.
Once the request is submitted, our platform cross-checks it against the master budget plan that has been signed off by the developer, lender and GC at the beginning of the project. We initiate any actions, such as inspections or inventory checks, as required by the plan (our platform enables very detailed actions, all the way to an individual line item, vendor or sub-contractor). A fully documented report, along with inspections or inventory checks, goes through the approval flow to the lender, developer or GC, as outlined in the plan. You remain in control fully through the approval process.
Once a request is fully approved, we receive funds in our escrow Trust account, and issue an eVoucher to the sub-contractor. The sub-contractor receives payment only after completion of relevant paperwork, including lien releases and W-9s, as applicable. Our eSignature and ACH capabilities, coupled with modern mobile app means that the sub-contractors can complete the paperwork even from the jobsite. * In cases where electronic process is not accepted or preferred, we provide alternatives for completing the required paperwork quickly and efficiently.
The full request flow, payments and documentation is captured in great detail and is available to you in real-time. We provide customizable reporting that can be integrated into your own banking or lending management software such as IBM Z, Temenos, EdgeVerve or any platform that can use XML / CSV files – a standard in data exchange.
*: for states that allow remote notarization or do not need notarization of liens and allow eSignatures.
We pay your sub-contractors directly. This means you don’t have to worry about funds in your bank account, or outstanding checks. We process requests immediately, so you don’t have to wait till month end to submit payment requests. We don’t charge based on number of requests. So, you can pay your subs more frequently, keeping them happy and productive.
Time freed from managing paperwork and working capital means more time for managing projects and spending quality time with family and friends.
Sub-contractors and vendors get peace of mind as funds are assured in escrow. Our electronic platform speeds payment cycle, as subs and vendors can complete the process in minutes from the convenience of their phone / desktop, getting funds directly to their account through ACH. These benefits mean subs and vendors prefer to work on your projects, rather than other builders, giving you a strong competitive edge.
Our modern technology platform and capabilities enhance your image as a dynamic, tech-savvy builder in in the market, attracting more customers as well as sub-contractors.
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