Check out the latest and greatest from the team at Rabbet.
Rabbet - the leading provider of construction finance software for commercial real estate developers, development service providers, construction lenders, and lender service providers, released the 2022 Construction Payments Report, with... Read More
An unconditional release differs from a conditional release because the moment you sign the document, you’ve immediately given up your rights to file a mechanics lien or you’re obligated to... Read More
Complicated and multi-faceted endeavors with a large number of involved parties, construction projects encompass a broad range of potentially risky points that can result in grave financial consequences if the... Read More
What is Retainage? Retainage is the withholding of a portion of the funds that are due to a contractor or subcontractor until the construction project is finished. It is meant... Read More
Understanding and accounting for the tax laws for a real estate development project is critical. This comprehensive guide gives an overview of the three main types of sales taxes that... Read More
Rabbet, the leading provider of construction finance software announced today that it has partnered with Berkadia, the top FHA construction loan servicer, to double servicing capacity. Berkadia’s adoption of Rabbet’s... Read More
Timely payments to general contractors and subcontractors reduce project risk, added costs, and delays. Rabbet’s 2022 Construction Payments Report dives into what happens when those payments don’t arrive on time... Read More
Why is Rabbet building integrations with every major accounting software? Development management and accounting are distinct and important activities for any real estate developer. Like drywall and paint, both are... Read More
Knowing capital needs on a construction project is critical to ensure proper cash reserves and interest reserves. Rabbet users can forecast what funding sources are going to be drawn during which months on the project then ensure sufficient interest reserves remain available.
To finance slow payments, the estimated overhead included in subcontractors’ bids is 2.75% and 5.81% for general contractors. This year’s report uncovered that slow payments to subcontractors and general contractors will create $136B in additional costs for the US Construction Industry in 2021.
General contractors and subcontractors estimate that the cost of floating payments for wages and invoices represents $136 billion in excess cost to the industry, a 36 percent increase from the cost reported in 2020. Findings indicate those costs are passed on to real estate developers and financiers in the form of project delays and higher bids from contractors.
Rabbet customers who add the Send to AvidXchange feature can now easily send coded invoices directly to AvidXchange for invoice processing, payment, and posting to accounting systems.
When planning the project, you predict uncertainty by including a contingency. The change order is the process of transforming this uncertainty into a certainty.
