The construction industry is thriving, but behind the scenes, finance teams are grappling with increasing pressures such as tight deadlines, complex regulations, and mounting workloads. According to our latest industry survey, finance professionals in construction are facing three major hurdles that are impacting their efficiency, compliance, and overall job satisfaction.
In this blog, we’ll break these challenges down and explore how to overcome them.
1. Talent Shortages and Employee Retention
The Problem
Talent shortages are a growing concern in the construction industry, with 36% of finance professionals ranking it as their biggest challenge. Small finance teams, often consisting of just 1-3 members, are bearing the brunt of increasing workloads. This, combined with outdated systems and manual processes, is leading to frustration and burnout among employees.
The Impact
When teams are understaffed and overworked, progress claim approvals are delayed, compliance risks increase, and project deadlines are missed. Dissatisfaction with manual processes and poor work-life balance is also driving talent turnover, creating a vicious cycle of inefficiency.
The Solution
To address this, companies need to invest in modern, user-friendly tools that automate repetitive tasks and reduce manual workloads. Leading builders like Buildcorp trust specialised tech such as Payapps to streamline 600+ progress claims in a month, allowing their finance teams to focus on higher-value tasks. By improving workflow efficiency and reducing administrative burdens, businesses can enhance employee satisfaction and retain top talent.
2. Technological Integration Challenges
The Problem
Many finance teams are still relying on outdated systems, with 41% of respondents admitting they use manual processes for progress claims. The lack of integration between finance tools and existing ERP or accounting systems is creating bottlenecks, with 29% of teams reporting delays due to internal handovers and communication breakdowns.
The Impact
Manual processes are not only time-consuming but also prone to errors. Without seamless integration, finance teams struggle to collaborate effectively with commercial and operations departments, leading to delays in approvals and payments. These inefficiencies can strain relationships with subcontractors and disrupt project timelines.
The Solution
Adopting specialised construction technology like Payapps can transform how finance teams operate. Payapps integrates seamlessly with leading ERP and accounting platforms, automating workflows and providing real-time visibility into progress claims. By digitising and standardising processes, teams can reduce manual data entry, improve collaboration, and eliminate delays.
3. Regulatory Compliance and Payment Deadlines
The Problem
Regulatory compliance is a constant headache for finance professionals, particularly when it comes to meeting payment deadlines under the Security of Payment Act (SOPA) in Australia and the Construction Contracts Act (CCA) in New Zealand. According to the survey, 53% of respondents find it difficult to ensure payments comply with these regulations.
The Impact
Without clear visibility into progress claim deadlines, finance teams risk missing payment due dates, which can lead to disputes with subcontractors, financial penalties, and damage to business relationships. Manual tracking of claims further exacerbates the problem, increasing the likelihood of errors and non-compliance.
The Solution
Automation is key to staying compliant. Industry-recognised tools such as Payapps provide real-time visibility into progress claims and payment deadlines, sending automated reminders to ensure payments are processed on time. Digital approval processes also help teams meet regulatory requirements while reducing the risk of disputes and penalties.
Embracing Digital Transformation for a Resilient Future
The challenges facing finance professionals in construction are significant, but they’re not insurmountable. Talent shortages, technological inefficiencies, and compliance pressures are putting even high-performing finance teams under strain, but the insights from our report highlight clear pathways to improvement.
By addressing these challenges head-on—through better systems integration, and smarter workflows—finance teams can transform how they manage progress claims. Doing more with less isn’t just a goal; it’s a necessity in today’s fast-paced, resource-constrained environment.
The key takeaway? Technology is no longer a nice-to-have—it’s a must-have. By embracing digital tools that streamline processes and reduce manual workloads, finance teams can not only overcome these challenges but also build better together towards a stronger, more resilient foundation for the future.
Download our latest report “Building Efficient Finance Teams with Construction Technology” for more insights.
