Effective supply chain management is key to the success of a construction project. Strong supplier relationships guarantee the best skilled workforce on the job, ensuring key project deadlines are met. Maintaining strong supply chain relationships makes it easier to choose reliable subcontractors for repeat work.
Time is key to the quantity surveyor. When he or she isn’t out onsite, they’re in the office managing the administration – the paperwork. Invoices, payment applications, insurance documents, tenders – the list goes on.
Managing processes manually using paper and spreadsheet based systems can take up the bulk of time for most commercial teams. When figures don’t add up – internally, or externally with clients and subcontractors – processes get unnecessarily complex and valuable time is inefficiently used.
The commercial team also has the responsibility of ensuring payment practices are Construction Act compliant. Payment terms set out in the subcontractor agreement must be adhered to, with physical payment made by a certain date. Failure to do so opens risk to severe consequences, commonly resulting in delays, legal disputes and a broken supply chain. The full extent of the damage caused in the aftermath of Carillion’s insolvency and late payment practices – 126-day payment terms to subcontractors – is still yet to manifest, but will likely mean insolvency for some subcontractors, despite the efforts of a £100m government handout.
To recap, the main obstacles facing all quantity surveyors are:
- Manual paper and spreadsheet based systems – One of the most time-consuming areas for quantity surveyors at any size construction company. Margins for error in spreadsheets and different reconciliations of what should be identical documents result in risk and costly overheads.
- Contract and legal compliance – All applications for payment must be submitted on time by subcontractors, payment notices must be issued submitted on time by contractors and payment must be made by the terms set out in the original contract agreement and UK Construction Act.
- Cost estimation, bill of quantities and cost reporting – Ensuring that all information is readily available for key decision making.
- Managing supply chain relationships – Ensuring all suppliers are happy and able to complete their work on time.
Payment application software – Payapps
No other software on the market gives full control of the application and approval process, allowing main contractors to choose the format in which subcontractors submit applications for payment. Payapps reminds parties when it is approaching both time to submit and assess, ensuring a more transparent and collaborative process.
This light touch, easy-to-use solution allows the main contractor to easily assess applications including any supporting evidence and to subsequently submit payment notices, rapidly reducing the amount of time it typically takes to manage the application for payment and approval process.
Industry standard PDF applications and payment notices are automatically produced and sent at the click of a button, with the ability to manage and track variations and supporting documentation.
To find out more about Payapps, get in touch with us here.