With technology becoming more central to day-to-day activities in construction, the benefits outweigh any inconveniences or cost associated with getting up and running. Within a construction project, from start to finish, there are numerous stakeholders and now multiple digital platforms involved, to allow a consistent and accurate flow of information to be shared with everyone.
It is becoming more important to implement innovative solutions to improve the efficiency, and accuracy of project processes, transactions and operations, moving away from previously manual, time-consuming methods in the back-office, to more streamlined practices and profitable outcomes.
Payapps allows companies to add value to their operational processes, have a fully auditable and traceable application for payment methodology, and improve contractor relationships with subcontractors. The software can offer a solid opportunity to reduce friction with project parties and reduce risk, while improving the predictability of costs and cash flow forecasting.
The value inherent within healthy supply chain relationships
One of the most important parts of the relationship for a subcontractor is how their payments are handled and processed, and the more positive experience they have, the stronger the relationship with the contractor can become.
Payapps allows subcontractors to upload their applications at any time, in any location with an Internet connection. As well as being convenient, subcontractors have full confidence that their important documents won’t get misplaced and have full visibility of the status of their application as it moves through the contractor’s approval and payment process. This level of transparency can be one of the important elements in maintaining a positive working relationship.
So, what is the potential cost of not implementing a solution like Payapps? Along with a potentially more complicated, time-consuming subcontractor payment process, heavy administration costs and poor visibility of potential risks, contractors can face potential adjudications if they miss key notification dates and can be excluded from the bidding process for government projects if prompt payment thresholds are not met.
Supply chain relationships could also be negatively impacted by unintentionally delaying subcontractor payments, with a possible knock-on effect of having a devalued reputation as a contractor, making quality subcontractors harder to attract. Any payment delay can also cause potentially catastrophic financial issues, with the risk of talented subcontractors going into administration increased.
To ensure simpler, faster fairer supply chain payments and add value back into your relationships, consider digitising your application for payment process and request a demo of Payapps today.
