Contractors can rely on the exchange of e-signed lien waivers for electronic payments. Then it can be determined if Textura’s CPM platform offsets those problems.The subcontractor’s payment woes begin with the construction contract arrangement, which requires the subcontractor to buy the supplies, provide the tools and equipment, pay for labor, and perform work before applying for payment. After all, a huge majority of its actual user base is comprised of subcontractors.This explains why the company has reached out and worked with the American Subcontractor Association to become a platinum sponsor. Nevertheless, as this article will explore, there may be some irreconcilable frictions between Textura’s CPM business model and the interests of subcontractors. It may be beneficial to ask the GC ahead of time if CPM use is required, and if so, who is responsible for which costs.Likewise, it’s always important to read lien waivers before signing, especially if the waiver is unconditional.
It may mean that, through the use of CPM, GC’s are able to mandate the exact form and text of the lien waivers that subcontractors must use and deliver through the CPM.
This seems odd, considering that more than 500,000 subcontractors have used Textura’s software products, compared to only 8,000 general contractors, owners/developers, and architects (according to textura.com). These frictions threaten to cloak Textura’s courtship of subcontractors with suspect intentions.Textura’s sales pipeline is full of the world’s biggest general contractors and property developers. according to user roles and permissions.
To general contractors, the promise is that the Determining whether Textura, at it’s core, is a friend or foe to subcontractors, therefore, may simply boil down to how Textura handles this sensitive exchange.There have been a lot of posts here on the Construction Payment Blog about lien waivers, with a strong focus on how When subcontractors are asked to sign a lien waiver they are in a very vulnerable position. Short on working capital, they are asked to sign a document in exchange for cold, hard cash. The gripes were so prolific they The motivations for each of these parties are natural and the relationship continues to allow ASA to voice its members’ concerns.Since Textura is a fact of business in the industry and used by thousands of subs, who also largely pay for the platform, a relationship makes sense. If using the CPM system, once an invoice or pay application has been submitted for approval, diligent follow-up is likely necessary – there are only 60 hours from the time the GC sends payment instructions to their bank until the lien waiver is released, whether payment has actually been made, or not.The steps required in a project’s journey to completion are importation to how successful the project will be. Though it is the general contractor that usually requires that each party use Textura’s platform, they rarely cover the cost. In order to do so, those subcontractors must pay for, and use, the CPM software. Every party sending waivers, invoices, or payments through CPM must have a license, and somebody must pay for each of those licenses. Textura’s CPM platform is designed to streamline the process by enabling subcontractors to electronically make payment applications and exchange required documentation.
Property owners and GCs rely on waivers to manage the...While joint checks and joint check agreements are common in the construction business, these agreements can actually be entered into...What are lien waivers in construction? And then, the subcontractor must still wait for the requisite “review and approval period.”However, CPM’s “get paid faster” claim is not completely devoid of merit. I will pay 1/2 up front and remaining when finished. Upon receiving your invitation to join CPM, we appreciate your prompt response.
The industry’s landscape just makes it really, really hard to actually pull off. If you continue to use this site we will assume that you are happy with it. The key takeaway from this is that Textura doesn’t need to spend sales & marketing dollars on the subcontractors – as long as the GCs agree, everyone is required to use Textura’s products. Then, after the work is in place and the subcontractor has spent its working capital, the subcontractor can apply for payment and wait the requisite “review and approval” period to get paid.These components of the construction payment timeframe is responsible for a huge chunk of subcontractor payment delays, and Textura’s CPM doesn’t really do anything to change this timeframe. From the AP main menu, click Reports, then Textura, and select Export Legal Documents.