Rabbet’s 2021 State of Construction Finance Report revealed that most lenders and developers are using spreadsheets to carry out major parts of their process, but complain about its inefficiency.
Construction Lender Efficiency Tip #6 – Automate Pay App Reconciliation and Retainage Calculations
Ahh, good ol’ pay apps. After manually comparing the G702 and G703 there’s a good chance the figures don’t match up or the retainage for the current period is missing. You might also need to manually reconcile the Subcontractor pay apps to the General Contractor pay apps. This is another great opportunity to boost efficiency with technology. Solutions exist today that read the G702 and G703 documents, compare values to the budget and calculate both the current period retainage and any retainage releases. Best of all, they even provide an easy view of subcontractor pay apps reconciled against the GC pay apps.