Payapps – Making Construction Progress Payments Simpler, Faster and Fairer

The challenge was to standardise an established though disjointed process where subcontractors submitted claims for progress payments (critical to maintain business cashflow) and builders reviewed and approved these claims for timely progress payments. The old process was an inefficient mix of disparate systems, spreadsheets, handwritten notes and emails, often printed out, couriered, stored and misplaced. This caused payment delays, fractured working relationships, breaches of legislated payment standards and court action. The design brief was to standardise and digitise the process for both sides of construction transactions and put all the information online in an easy-to-access, easy-to-use and intuitive collaboration tool.

Payapps provides a single interface where builders and subcontractors come together for progress payment claim submissions and approvals, and reflects the varying levels of digital maturity among the target audiences. Payapps seamlessly integrates with accounting, financial, construction and ERP systems used by builders and subcontractors to reduce data entry requirements and provide a single, real-time view of project financials and status of payment claims and approvals alongside overall project budgets. It was designed with an intuitive user interface to make it easy to use with minimal training, and supports mobile device use with high colour contrast for outdoor environments.

Payapps has been adopted by 100+ large builders and nearly 7,000 subcontractors in Australia, New Zealand and the UK. It is the new industry standard to improve cashflow management through increased visibility by defining, simplifying and digitising a new, streamlined process for project progress payments. Builders report a 50% reduction in time taken to process payment claims. Users also report a significant reduction in the number of phone calls and emails required to chase claim approvals, resubmit paperwork and correct errors. Integration to widely used financial and ERP systems in the construction industry has reached around 80% market coverage.

Construction payments can be complicated, with slow approvals, time-wasting errors and poor record of project payment status. This results in slow payment processing, cashflow issues and often disrupted construction supply chains. Payapps addresses the important issues in construction payments: 1.Standardisation and digitisation of payment claims that creates a common and more transparent view for both builders and subcontractors of the value of a project, progress payment claims approved, and new claims lodged. 2.Approved and unapproved project variations are accounted for to ensure nothing is missed by either builders or subcontractors, while also being reflected in main financial and project management budgets and systems. 3.Payment retention means a certain amount of the project budget is withheld from subcontractors pending satisfactory completion of the project, and Payapps helps all parties track these amounts. 4.Document compliance is incorporated (insurances and declarations) to reduce project risk as part of the progress payment approval methodology. Faster progress payment claim approval helps builders meet regulations such as the Security of Payment Act (SOPA), created to provide security for subcontractors in construction. 5.Payapps is used by builders and subcontractors working together on projects, or standalone by subcontractors to manage their payment claims.