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 #7 – Automate Lien Waiver Reconciliation
Reviewing and reconciling lien waivers is another step you can streamline. If your current process requires team members to manually classify lien waivers, run calculations to reconcile amounts, or spend time looking back and forth between lien waivers and pay apps, you have multiple opportunities to introduce automation.
To achieve optimal efficiency first put an automated workflow in place to reconcile the lien waiver amounts with the amounts on the General Contractor and Subcontractor pay applications. Team members should be able to quickly and easily reference both pay apps in the same window. Next, make sure your system is automatically classifying the lien waiver documents and indicating whether lien waivers are conditional or unconditional. Once these processes are in place you can reconcile line items and hard costs by simply scanning a few quick metrics, no manual work required.