Streamlining Construction Payments: Hyphen Solutions Build-to-Pay Workflow
Housing market slowdowns, inflation and residual side effects of the COVID pandemic have created increasing cash flow and payment challenges in residential construction. While these issues can make it difficult to keep up with expenses, many residential construction companies have invested in a payment management system. A secure, electronic payment system alleviates cash flow headaches, ensures timely payments and can even improve construction project management workflow.
Hyphen Solutions offers a Build-to-Pay Workflow that benefits both Builders and Suppliers. The integrated construction payment management software Hyphen Wallet enables Builders to pay Suppliers with simplicity, security, speed and visibility in real-time via a secure platform with the Suppliers’ payment method of choice.
The Challenges of Construction Payments
The residential construction industry has an especially complex payment process because it involves many parties, including Contractors, Subcontractors, Suppliers and Trades. Payment delays can have a significant impact on cash flow, making it difficult for Builders and Suppliers to manage finances and pay their bills. A lack of transparency in payment processes can make it challenging to keep track of payments and ensure everyone is paid on time. The use of paper-based systems, such as checks and invoices can contribute to delays, errors and fraud. In addition to inadequate cash flow, delayed payments can have a negative ripple effect, leading to disputes, litigation, a hit to a company’s reputation and even bankruptcy for small businesses.
A survey conducted by Rabbet of 137 general contractors and subcontractors across the U.S. analyzed the speed of payments and the growing negative cost impact on the broader sector. The report concluded that the cost of slow payments totaled $208 billion in 2022, a 53% increase from the prior year. An estimated 37% of all respondents reported work being delayed or stopped due to payment delays to crew members in the last 12 months. And general contractors spent 44 hours per month managing payments to subcontractors and vendors.
Hyphen Solutions Build-to-Pay Workflow
With Hyphen Solutions Builder-to-Pay Workflow via Hyphen Wallet, Builders issue a task and order, then Suppliers accept and complete the task. Once Builders approve the task and optionally send a lien waiver, the Supplier signs the waiver (if applicable). The Builder issues payment, the Supplier selects their preferred payment method, receives payment and the Builder receives a real-time payment update, all from a secure, password-protected portal.
The Benefits of Hyphen Solutions Build-to-Pay Workflow
All stakeholders involved in the construction process benefit from the Build-to-Pay Workflow provided by Hyphen Wallet. Once logged in, Builders can view all Suppliers currently being paid through Hyphen Wallet and click on each of their profiles to review their current payment method. Suppliers can select an available payment method and apply that preferred payment method to an individual Builder or all Builders. Remittance information can be downloaded as either a PDF or an Excel document.
Digital payments enable processing Supplier invoices quickly, while eliminating the problems associated with paper checks and manual processing. Enhanced security features ensure transactions are secure and protected against fraud. Digital payments can be made and received 24/7, from smartphones, laptops and tablets with an Internet connection. A real-time, clear view of cash flow enables managing finances more effectively, including the ability to maintain a digital record of all transactions, which can be used for auditing and compliance purposes.
Enjoy Streamlined and Secure Payment with Hyphen Wallet
With all the cash flow challenges inherent to residential construction, it makes sense to transition to a secure electronic payment solution. Implement Hyphen Wallet Build-to-Pay construction management workflow for faster, highly secure and cost-effective payments. Learn more today by scheduling a demo.