Here at GCPay, we have one big, audacious goal—fixing the application for payment process. I'd even argue we share that goal with you. But, without the help of technology and software, that goal may be very hard to achieve.
Construction software comes at a cost, a cost that (usually) must be justified. You need to pay close attention to the return on investment (ROI) in order to underline the overall value for your business.
Lucky for you, we spend a lot of time thinking about how we can improve the application for payment process and help you save time and money.
Stop wasting time
Controllers, project accountants, AP managers and everyone in between waste valuable time (which equals valuable money) with inefficient, manual processes that are nearly impossible to automate, don't integrate with your ERP system and are anything but simple. In 2020, we spoke with a few customers to see how much time they really spend per pay application.
Here's a breakdown of the process:
Gather required docs including AFP, lien waiver and other backup documentation
Routing/scanning AFP to appropriate parties for review
Reconciliation of contract value and previously billed values
Review progress by project team
Enter invoices into ERP
Ensure compliance requirements have been met
Prepare and issue payments
Prepare required lien waivers post-payment and collect from subcontractor
The application for payment process is slow
Does your current process look a little something like this?
If that's the case (as it is for a lot of folks), maybe you're having a hard time justifying the cost of implementing new software? Maybe a new payment management system is scary? Whatever the case, technology will continue to be a large part of every construction project now and in the future to improve performance and productivity—and reduce risk.
In fact, research from McKinsey found that productivity in manufacturing has nearly doubled in the past three decades whereas construction has remained relatively flat.
A variety of factors account for poor productivity and cost outcomes. Here's a few of them:
- Poor organization
- Inadequate communication
- Inconsistencies in reporting – subcontractors, contractors and owners do not have a common understanding of how the project is going at any given time
- Outdated processes
- Inaccurate billing
These problems are serious, systemic and all too common.
Know your ROI
Well, what can we do about it?
At our core, GCPay reduces the amount of time spent processing payment applications. While the ROI of GCPay starts with the pay app process, we ultimately affect the core function and efficiency of your business as a whole.
GCPay saves you time and money by providing internal transparency, improving process controls, eliminating manual paper-based liens, ensuring the accuracy of your accounting processes and giving the executive team the birds-eye view they need to make better decisions about the business.
Although there is an obvious upfront benefit from keeping all your projects in one place, the real value of GCPay is realized over time as users become more familiar with the platform and your team loads more of your projects in GCPay—reducing your manual processes.
What's the Point?
Sure, your company could build an accounts payable army to manage your pay apps—that fixes the short-term problem. But, it also compounds the micro-issues like unapproved change orders, subcontractor billing errors, back-and-forth emails, etc.
We want to get the bottom of this and help you build a holistic approach to solving these issues. Here are a few ways we can do that:
- Custom payment workflows and automation
- Creating and exchanging lien waivers
- Managing all compliance documents
- Integrating directly with your ERP or accounting system
- Processing electronic payment
- Customized reports
- Fully remote online notary
Add all this together, and instead of costs-incurred, it's costs-saved. Here's what Andrea Mosher from Pinnacle Construction Group had to say:
"We probably save half a day, every day. It's 20-25 hours a week where someone on my team doesn't have to be manually entering data."
Prove the ROI
There you have it—if your goal is to automate, integrate and simplify the application for payment process, we're with you every step of the way. We'll help you eliminate unapproved change orders, reduce billing errors and free up your time do other important tasks that will ultimately save your company precious time and money.
If you want to explore GCPay a little more and find out how we can best fit your needs, feel free to get in touch with us. Let's take back your time!