Imagine how much time you could save by eliminating back-and-forth document transfers. Picture a world where you don’t have to organize documents for each draw, or manually compare spreadsheets to PDFs. If you use the right construction loan management platform you can simply upload documents and let the platform automatically organize and classify documents for you.
Leveraging Optical Character Recognition or OCR, these platforms analyze draw packages with hundreds of documents in seconds. Each document is organized in one location, and attached to relevant line items. This allows your team to easily check invoices, budgets, lien waivers and pay applications without breaking stride. No emailing, no digging through outdated spreadsheets, and significantly less data entry. Many solutions today even combine artificial intelligence and machine learning to get smarter each time you use them.
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.
