Timely availability of materials and labor is crucial to successfully delivering construction projects. It is critical for general contractors to have visibility into any impact on supply chain continuity to maintain schedules and productivity levels during periods of economic instability.
Oracle Textura Payment Management, a widely used cloud solution for managing subcontractor invoicing, payment, and compliance management, recently launched new functionality to help general contractors identify, track, and report on potential disruption to their project supply chains.
This early-warning capability enables general contractors to activate contingency plans and take other proactive measures to limit the impact on productivity. The new feature has been incorporated into the system’s invoicing workflow. In submitting payment applications, subcontractors provide information detailing any known issues related to the availability of materials or labor.
That data is immediately available to the general contractor and becomes part of the project record. Forms can be customized by project to meet specific needs, such as environment, health and safety requirements, and contract style.
This new capability arose from discussions with Oracle Textura Payment Management customer, Turner Construction Co., which ranks No. 2 on Engineering News-Record’s list of the world’s 400 largest contractors.
Turner recognized a need to gather information on materials and labor availability quickly, consistently, and easily from their supply chain.
The general contractor used Oracle Textura Payment Management to capture additional information on subcontractor risk areas since they were already using the tool to manage invoicing and payment documents and processes.
The company worked with the Oracle Construction and Engineering team to incorporate the flexible survey forms used to monitor supply chain health. These forms can be used by general contractors or trade contractors and can either be sent to subcontractors on their own or accompanying payment applications.
The large general contractor can address various regions that are impacted differently by economic, environmental, and/or public health related issues.
This process of “exception reporting” to proactively identify variances from plan can be implemented down to the project level. The project managers look for early indicators of issues so that Turner can forecast, plan, and respond in a timely manner before project schedules are impacted.
“In the future we hope to report on this information across our entire organization to highlight areas of risk and also learn from the history,” McCabe said.
“The solution’s flexibility to support specific project and regional differences, and the fact that the majority of Turner’s supply chain is already set up on the tool, make Oracle Textura Payment Management the perfect solution to manage supply chain-related processes beyond payments and compliance,” said McCabe.
Learn more about Oracle Textura Payment Management.
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