Mashburn Construction needed an efficient, automated solution to help manage their payment and compliance processes to support the company’s growth.
The South Carolina-based construction company services the cities of Charleston, Greenville, and Columbia, and manages roughly 30 projects at a time, totaling an annual project value of roughly $80 to $100 million.
Robert Parsons, Mashburn’s chief financial officer, entered the E&C industry after spending his career in other industries, including manufacturing, and brought automated payment systems experience with him.
Parsons did not find what he was looking for in the industry accounting packages he researched before he discovered Oracle Textura Payment Management in 2007.
“When I learned about Oracle Textura Payment Management at a conference, the bells went off,” said Parsons. “This is the comprehensive control environment we needed to manage payments and compliance. It was a complete no brainer.”
Parsons implemented the Oracle solution across all of Mashburn’s projects, stating, “No project is too small to gain value from Oracle Textura Payment Management. If you have subcontractors on a project, you must pay them and manage compliance,” said Parsons.
Mashburn considers their subcontractors to be the biggest part of their staff. “We can’t get work done without our staff. We want to motivate them—and paying them quickly is the best way to do that,” said Parsons.
100% of payment applications are delivered to owners within three working days at the end of each month using the construction payment management software.
“The faster we get paid, the faster we can pay our subs. Using Oracle Textura Payment Management, subcontractors are paid within two days of Mashburn being paid—that’s quick cash in subs’ bank accounts,” Parsons said. “In the past, it took at least a week for subcontractors to get paid.”
Processing pay applications and associated lien waivers would have easily been 40% of one person’s job, or 32 hours per month, before using the construction payment management software. “Our monthly subcontractor payment process was an absolutely crazy paper chase,” said Parsons.
The approval process also speeds up. Once the project manager, who is generally the first point of contact, receives the subcontractors pay applications, the invoice is accessible in the Oracle solution. Finance views these approvals at the same time as the project manager.
The time savings for the finance team goes all the way up to the chief financial officer. “As the CFO, I sign all pay applications. With Oracle Textura Payment Management, I get a list to sign and within a couple of clicks it is done,” Parsons said.
Mashburn used to issue two weekly check runs to pay subcontractors as quickly as possible and align to the draw before using the Oracle tool. Now, Mashburn does just one weekly check run because the process is so streamlined.
The construction payment management solution also automates Mashburn’s payment requisition process, which saves time and eliminates the risk of errors. In the past, there could have been up to four versions of a pay application and each version or copy had to be checked and reconciled.
Parsons and his team onboarded their subs after adopting the Oracle solution. “If I took Oracle Textura Payment Management away from our subcontractors, they would scream bloody murder,” said Parsons.
Mashburn has outsourced all hosting and support by moving to the Oracle tool and other cloud-based systems. The company can still conduct essential business processes of billing and making payments, even if their local systems go offline.
Ensuring additional costs from approved change orders are integrated into payables now takes just six hours a month or less—a process that’s easily two weeks faster than before.
Internal communication has also streamlined across the four Mashburn offices. In the past, the company sent hard copy forms in the mail between four offices, taking about five days of the 10-12 day change order approval cycle. Providing subcontractors the go ahead to bill against change orders has been reduced to just five days, a reduction of over 50%.
Mashburn began their Viewpoint - Oracle Textura Payment Management integration by enabling automatic upload/download at specified times. The construction company is planning to implement a connector called TexturaLink that will further minimize administration and provide always up-to-date cost information within Viewpoint.
Learn more about Oracle Textura Payment Management.
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