Contract Simply CEO Will Mitchell recently presented preliminary findings from the Contract Simply First Annual Construction Payments Report as the keynote for the Society for Construction Solutions (SCS) at the Capital Factory in Austin, TX.
SCS is a global network of construction industry professionals, entrepreneurs, investors, and researchers who meet as local chapters to influence the technological advancement of the construction process.
Will shared preliminary findings from the study focused on the impact slow payments have on developer projects. As part of the study, we surveyed subcontractors on how they floated payments while they were waiting for payment from the general contractor. The majority of the survey participants use a line of credit, or business savings account to pay their subcontractors and vendors while waiting for draw payments from both the lender and general contractors to be released. We also asked respondents to estimate the additional cost that slow payments add to their overall project expenses and how much of a discount they would be willing to offer if paid net 30.
According to PWC, Engineering and Construction suffer from the most extended days sales outstanding in the US at 54 days. The preliminary results of our study confirm that data; both the costs to contractors and the industry as a whole are dramatic. We’ll publish the details of the research and recommendation for expediting the payment process soon.
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About Contract Simply
Contract Simply is the leading software for construction lenders and construction loan management. Everything we do – from rapid fire document processing to payments to lien management – is designed to improve efficiencies and mitigate risk through process automation.
Built in Austin, Contract Simply offers cutting-edge machine-learning technology and more efficient logic to manage construction loans, cutting days from the construction draw process while ensuring compliance and reducing risks for everyone involved.
Lenders love Contract Simply because its machine learning algorithms help automate mundane tasks and accelerate the approval process usually managed in large siloed Excel spreadsheets.
Borrowers love Contract Simply because it simplifies the tedious nature of submitting draw requests and expedites draw disbursements.
Lenders and Borrowers log into the Contract Simply portal to quickly share and review draw requests, documents, invoices, receipts, lien releases, inspection reports, and overall project and payment progress. Everyone spends less time reviewing paperwork and waiting for payments, and more time completing projects.
Contract Simply – providing intelligent automation of construction payments!