Financial Technology to simplify a complex problem to assure rapid payment moves to the many links in the construction payment chain on projects.
Electronic ‘handshakes’ between each pairing in the payment chain to assure expectations are understood and promises are kept for all approved and delivered work and materials.
Closed loop procurement card draws from work provider’s escrowed material budget to rapidly pay material providers upon procurement without leveraging trade credit.
Why do I need BuildPay?
Construction payment is the one and only process that all construction has in common. It’s also one of the most inefficient, opaque and problematic; leading to the worst accounts receivable and working capital deficiencies of any industry worldwide. Whether you fund, own, oversee, build or provide materials BuildPay supplants the negative impacts of payment flaws at your respective link in the payment chain.
Who uses BuildPay?
Most all projects include 4 main BuildPay-user groups: (1) Funders providing project capital, (2) Owners that need construction, (3) oversight and work providers and (4) material providers. Included in these groups are many different subordinate agents, sureties, architects, engineers, distributors and manufacturers who all have a roll in progress payment flow.
How do I sign up?
If you are a funder of projects, or an owner with funding for a project, contact BuildPay to see how we can add value. If you provide oversight, work or materials signing up is by invitation. You can learn more about getting invited to participate on BuildPay projects or making sure you get paid on your next project at [email protected].
Where are the BuildPay hot spots?
BuildPay is currently deploying across Florida and upstate NY. If you plan to provide funding for property losses, construction loans or government projects we can help start deploying where you need us. Just contact us at [email protected].
Funders of construction – insurance companies, banks, or governments – set aside dedicated project funds into an escrow-like account that they own. The project owner and other stakeholders, like a mortgagee, are invited to collaborate in the BuildPay online platform.
Contractors and subcontractors are paid for completed work via direct deposit into their bank accounts after approval from the project’s owner. Permissions can be set at each level to define payment type and schedule, without disrupting the regular construction process.
Materials are purchased from registered BuildPay material providers using debit cards that are pre-loaded with project funds. Everyone on the project can see what has been purchased. If your favorite merchant isn’t currently signed up, don’t sweat it. BuildPay’s team can coordinate with all players to make sure you get the materials you need.
Projects that utilize BuildPay technology typically cost less, finish faster, and have reduced risk. The secret sauce is in centralizing the entire payment chain. Normal construction projects include hidden costs that providers factor into their pricing. BuildPay’s transparent payment model significantly reduces the risk that contractors and material providers are used to taking, thus reducing costs.
BuildPay was built, first and foremost, to combat the payment struggles that veterans of the industry have come to accept like bad weather. The solutions that have emerged in the last few years have all tried to cover up the problem with early payment solutions and project management tracking, but none have dug deep enough to solve every provider’s true need: They just want to get paid (and not have to pay for it).
For a long time material providers have acted like the construction industry’s bank. Materials are needed on every job, but the money isn’t always there. Merchants need to sell materials to stay alive, so they extend credit to their customers and then wait an average of 75 days to get paid. BuildPay’s technology is centered around the premise of quick, direct payment to everyone. So material providers are paid as soon as the materials leave their yard, with no transaction fees.