In the construction industry, funds need to flow throughout the project in a reasonable timeframe otherwise the project could potentially suffer delays, resulting in reduced profitability. This is why on-time payments are so important today.
While payments are a critical part of the project, the process can be time consuming. The more traditional methods of making payments can take too much manual effort before everything is calculated and applied to a job. However, software allows immediate access to payment data.
Technology saves time during the payment process, allowing companies to manage processes using Web-based solutions. While this type of payment technology is not new, technology providers have recently been coming to market with new partnerships to enable quicker payments in the construction industry.
Piracle’s Create-A-Check technology allows the industry to create and print checks using blank check stock. In addition, the RapidREMIT eXPRESS is a secure online payment solution that processes check and credit card payments electronically.
The integration with ComputerEase allows users to generate electronic files for transactions. The integration securely processes payments in a faster manner, which will improve cash flow.
This technology allows managers to focus on managing the project instead of the payment process. Still, the technology provides detailed payment data and history—in case of litigation.
Not only is on-time payment important for profitability, promptness with the paychecks is also key to help mitigate risk. Federal and state laws across the country require ‘prompt payment’ in the construction industry. The technology is a good way to mitigate risk while also speeding up the payment process.
Of course, there are many similar partnerships and software solutions to help the construction industry enable faster payments and reduce risk.
Textura’s, www.texturacorp.com, Deerfield, Ill., CPM (Construction Payment Management) system performs all the construction payment management processes in one solution in order to allow contractors to collect subcontractor billing, lien waiver/statutory declarations, compliance, and electronic payments on construction projects.
These solutions are just a few examples of how the construction industry can improve the payment process today. Technology speeds up processes and allows the industry to reduce the amount of risk on the project. As the more traditional manual processes begin to fall by the wayside, technology providers will come to market with new solutions and integration partnerships in order to help the industry move forward with more prompt payments.