Time is Money: Calculating your Construction Technology’s ROI

Here at GCPay, we have one big, audacious goal—fixing the application for payment process. I’d even argue we share that goal with you. But, without the help of technology and software, that goal may be difficult to achieve.

Construction software comes at a cost, a cost that (usually) must be justified. You need to understand the return on investment (ROI) in order to underline the overall value for your business.

Lucky for you, we spend a lot of time thinking about how we can improve the application for payment process and help you save time and money.

Stop Wasting Time

Controllers, project accountants, AP managers, and everyone in between waste valuable time (which equals valuable money) with inefficient, manual processes. Manual processes don’t integrate with your ERP system and are error-prone.

In 2020, we spoke with a few customers to see how much time they really spend per pay application. 

How Much Time Construction General Contractors Spend on Payment Applications

Here’s what we found:

  • It takes about 10 minutes to gather the required documents (AFP, lien waiver, backups)
  • It takes about 15 minutes to review progress by project team
  • It takes about 5 minutes to enter the invoices into ERP
  • It takes about 5 minutes to ensure compliance requirements have been met
  • It takes about 5 minutes to prepare required lien waivers post-payment and collect from the sub

… Overall, it takes about an hour per payment for application.

The Pay Apps Process is Slow

Does your current process take about an hour?

If you said yes – maybe you’re having a hard time justifying the cost of implementing new software? Maybe a new payment management system is scary?

Whatever the case, technology will continue to be a large part of every construction project. It will improve performance, boost productivity, and reduce risk. 

In fact, research from McKinsey found that productivity in manufacturing has nearly doubled in the past three decades whereas construction has remained relatively flat.

A variety of factors account for poor productivity and cost outcomes. Here’s a few of them:

  • Poor organization
  • Inadequate communication
  • Inconsistencies in reporting – subcontractors, contractors and owners do not have a common understanding of how the project is going at any given time
  • Outdated processes
  • Inaccurate billing

These problems are serious, systemic and all too common.

Payment Application System ROI

Implement technology. Simplify your application for payment process.

GCPay technology reduces the amount of time spent processing payment applications. While the ROI of GCPay starts with the pay app process, we ultimately affect the core function and efficiency of your business as a whole.

GCPay saves you time and money by providing internal transparency, improving process controls, eliminating manual paper-based liens, ensuring the accuracy of your accounting processes and giving the executive team the birds-eye view they need to make better decisions about the business.

Ready to see how much time and money GCPay could save you?
Calculate Your ROI!

Although there is an obvious upfront benefit from keeping all your projects in one place, the real value of GCPay is realized over time as users become more familiar with the platform and your team loads more of your projects in GCPay—reducing your manual processes.

Application for Payment ROI Example

What’s the Point?

Sure, your company could build an accounts payable army to manage your pay apps—that fixes the short-term problem. But, it also compounds the micro-issues like unapproved change orders, subcontractor billing errors, back-and-forth emails, etc.

We want to get the bottom of this and help you build a holistic approach to solving these issues. Here’s a few ways we can do that:

  1. Custom payment workflows and automation
  2. Creating and exchanging lien waivers
  3. Managing all compliance documents
  4. Integrating directly with your ERP or accounting system
  5. Processing electronic payment
  6. Customized reports
  7. Fully remote online notary

Add all this functionality together, and instead of costs-incurred, it’s costs-saved.

“Our sub billings used to take 4-6 days a month and now I’m down to about one day. That has freed up time for me to focus on other improvements in our business. We’ve changed every aspect of how we bill, how we collect waivers, and it’s all thanks to GCPay showing us a better way to do things.”

James Streeter | Westland Construction

Prove the ROI

There you have it—if your goal is to automate, integrate and simplify the application for payment process, we’re with you every step of the way. We’ll help you eliminate unapproved change orders, reduce billing errors and free up your time do other important tasks that will ultimately save your company precious time and money.

If you want to explore GCPay a little more and find out how we can best fit your needs, feel free to get in touch with us. Let’s take back your time!

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