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Better Information Results In Faster Payment Approvals

by editor

The process for submitting and approving claims is not standardised across the industry. It is not possible to make something efficient if it is not consistent, which is where Payapps comes in. Leading builders across Australia and New Zealand, and over 3000 subcontractors in Australia, are utilising Payapps to submit, assess, and approve progress claims in a consistent format every month, proving standardising the format and process of claims is possible.

At first it might be hard to draw the connection between the quality of information you provide to your builder and how it can affect your cashflow and payment.

A builder typically receives thousands of progress claims a month. Traditionally, claims are submitted via email and in many cases on paper. Invariably, claims are formatted differently, and information and compliance documentation can be missing or incorrect.

The ensuing back and forth between builder and subcontractor to get the right information wastes time. Disputes only extend this process and ultimately, it is the subcontractor who is most affected, either through the time spent rectifying the issues or because of delayed payment. The builder also loses valuable team hours to this process with unnecessary productivity challenges.

Subcontractors also tend to be tied to spreadsheets, trying to reconcile outstanding claims with previously approved claims. This makes it pretty difficult to not only keep track of which claims have been submitted, but knowing which ones have been approved – and what payments are expected to help manage cashflow.

Unfortunately, the process for submitting and approving claims is not standardised across the industry. It isn’t possible to make something efficient if it is not consistent, which is where Payapps comes in.

Leading builders across Australia and New Zealand, and over 3000 subcontractors in Australia, are utilising Payapps to submit, assess, and approve progress claims in a consistent format every month, proving standardising the format and process of claims is possible.

IT GOES BOTH WAYS
Consistency and speed of information are fundamental challenges Payapps solves for the benefit of all parties involved in the construction process, not just the builder.

Payapps centralises information and ensures transparency by making documentation readily available, and is always in the right format. The entire approvals process is accelerated, saving time and money for both parties in manual paperwork and submissions. Importantly for subcontractors, this ensures faster approvals and improves cashflow visibility.

Most subcontractors who use Payapps find the main benefits among others are the way it simplifies the preparation of progress claims and helps them manage retention.

Payapps gives visibility across all contracts, including retention balances owed and knowing how much of a variations balance is approved versus being paid on account and therefore at risk.

Importantly, data is automatically reconciled from one month to the next, in itself representing a huge time saving.

PAYAPPS VALUE
If you are making infrequent claims to a builder, Excel or a more manual process might be sufficient. But as your claim numbers increase, a system like Payapps delivers quantifiable time and dollar savings over the course of many projects.

On top of the tangible benefits, subcontractors can streamline their contracts by using Payapps across all projects they are working on, regardless of whether the head contractor uses the system or not.

The best thing to do is see for yourself – request a demo with Payapps’ friendly sales team. They can answer any of your questions and plug your numbers into their ROI calculator to show you how much time and money you could be saving.

Book Payapps.com/bcm and Payapps are sure you will agree that at a certain point, the old way of doing things just does not add up.

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