Traditional construction billing and payment processes create headaches (and worse) for project owners. These processes can impact not just project delivery and related financials, but also the eventual handover at project completion.
Owners grapple with inaccurate payment and compliance documents across their supply chain and face risks from inadequate lien waiver collection—at both the subcontractor and sub-tier levels. They also can struggle to enforce standards and controls across project portfolios and face risks due to slow payments to the supply chain.
Fair and timely payments to the supply chain are critical to project success. Why? Projects that pay quickly have a much higher likelihood of finishing on time and on budget.
In addition, subcontractors sometimes favor high-performing projects and respond more quickly to requested changes. In addition, subcontractors may be more inclined to submit bids on future work for owners who pay in a timely fashion.
During a recent webcast, “How Mass General Brigham Optimizes Payment Processes for Capital Projects”―now available on demand―presenters highlighted why it’s critical for project owners to have full visibility into the subcontractor payment process. Increased transparency and control help ensure payments are timely and that lien waiver complications, compliance issues, and even subcontractor defaults are minimized.
During the webcast, Steve Denis, project control manager at Mass General Brigham (MGB), a Boston-based healthcare system, shared his experience using Oracle Textura Payment Management for the past 10 years at MGB. Oracle’s construction payment management software solution streamlines and automates invoicing, compliance, and payment processes for all parties in the supply chain.
Mass General Brigham, formerly known as Partners Healthcare System, is a non-profit integrated healthcare system providing patient care and research and discovery with 16 member institutions. MGB is a recognized leader, both nationally and internationally, for its extraordinary patient care and was named by US News and World Report as “among the best hospitals in the country.”
The healthcare system manages 22.4 million square feet of space, both owned and leased, and spends an average $430 million on real estate capital every three years.
Prior to implementing Oracle’s solution, MGB had faced some challenges around enforcing standards and control across their portfolio, including subcontractors submitting incorrect lien releases.
The healthcare system wanted to improve workflow transparency and activity pay application status on projects and portfolio, as well as create a portfolio view of retainers withheld, potential late applications, and volume of subcontracts.
After a successful pilot with Oracle Textura Payment Management, the organization now requires the use of the construction invoice software on the vast majority of their projects.
Consequently, some MGB contractors have started using the Oracle solution independently and have implemented the tool for projects across their own portfolios.
Today, MGB has more than 750 active projects and processes construction payments on more than $1 billion of contract value through Oracle Textura Payment Management.
MGB can now focus more time on what they are being billed for versus ensuring “the math is right” for auditors. The owner can thoroughly review what the contractors are billing for and can complete payment applications in just a few days—sometimes even in an hour—instead of a few weeks.
Watch the webcast, “How Mass General Brigham Optimizes Payment Processes for Capital Projects”, today to learn how Oracle Textura Payment Management helps the organization:
• Cut monthly lien release management by over 90% to just one hour
• Lower operational risk by exposing and correcting payment process errors
• Reduced project costs and schedule delays by ensuring payment is flowing to the supply chain while enforcing standards across their project portfolio
• Minimize operational costs by digitizing internal processes—like more efficient pay application approval processes—for their vendors
• Complete payment application approvals in just a few days—sometimes even in an hour—instead of the few weeks it could take in the past.
Oracle Construction and Engineering, the global leader in construction management software and project portfolio management solutions, helps you connect your teams, processes, and data across the project and asset lifecycle. Drive efficiency and control in project delivery with proven solutions for project controls, construction scheduling, portfolio management, BIM/CDE, construction payment management, and more.