{"id":125812,"date":"2023-05-25T17:00:34","date_gmt":"2023-05-25T16:00:34","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=125812"},"modified":"2023-05-25T17:05:24","modified_gmt":"2023-05-25T16:05:24","slug":"building-resilient-construction-business-payapps","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/digital-construction\/construction-technology-news\/building-resilient-construction-business-payapps\/125812\/","title":{"rendered":"Building a resilient construction business"},"content":{"rendered":"

Payapps head of UK and Ireland, Neal Hooks, explores how using construction technology to build a resilient business model can help construction firms absorb stress, recover critical functionality and thrive in altered circumstances<\/h2>\n

As the industry grapples with inflation and shortages of labour and materials, many businesses and organisations in the sector have had to react in agile and decisive ways to survive.<\/p>\n

Neal comments: \u201cDespite the pressures, construction businesses need to seek and seize new opportunities and create more resilient business models<\/a> to cope with challenges as they arise and adapt through any disruption. These could include enduring current labour shortages, inflation, environmental issues and political forces. Payapps is focused on supporting construction businesses to create resilient business models bolstered by innovation and technology, this being the reason behind our popular From Surviving to Thriving video initiative<\/a>.\u201d<\/p>\n

Establishing financial resilience in construction<\/h3>\n

Over the past couple of years, construction business insolvencies have increased sharply, exposing the fragility of the industry\u2019s supply chains, workforce management and internal processes. Rising labour and material costs have resulted in estimating and payment shortfalls, and a number of organisations adopting a \u201cpay when paid\u201d clause in their contracts, delaying payments until they themselves have received payment from the employer \u2013 shifting risk down the supply chain and impacting subcontractors\u2019 cash flow resilience.<\/p>\n

As the industry continues to work on thin margins and limited cash flow, it doesn\u2019t take much to send a business under\u2026 and to seriously hamper the progress of any project its team was employed on. So for a subcontractor, clear visibility of the status of their submitted applications for payment is imperative, while for a contractor, transparency around supply chain payments and liabilities is key.<\/p>\n

Neal says: \u201cHaving the two parties collaborate in one system is ideal for access to a single source of truth. Using Payapps, real-time data relating to applications for payment, their values and their status mean construction businesses can make informed decisions quickly.<\/p>\n

\u201cWhen you automate the application for payment process,<\/a> you have accurate and up-to-date documentation stored centrally in the cloud, and you know the status of all applications for payment instantly \u2013 what\u2019s been submitted and received, when payment notices are due, the value and detail behind any variation changes, and the value of applications yet to be certified. This immediate access to real-time business information allows improved forecasting and an ability to quickly adapt in the case of unexpected events.\u201d<\/p>\n

Technology also presents a huge opportunity to improve competitiveness; the data and ease of reporting can deliver actionable insights to unlock new business opportunities and improve customer outcomes by reducing costs and boosting efficiency.<\/p>\n

Building resilient collaboration<\/h3>\n

Construction technology ensures strong communication between stakeholders, which allows for timely project delivery, within budget. Collaboration between project participants eliminates data errors that can cause project delays or mistakes and provides transparency across the board.<\/p>\n

With a shortage of subcontractors, maintaining a positive reputation for good supply chain communication and fair payment is important for ensuring lasting and effective relationships.<\/p>\n

Neal explains: \u201cPayapps technology creates greater business resilience by building trust across all parties through collaboration. Having standardised information in one place means everyone, including subcontractors, works from the same numbers, even when reconciling contract variations and retention. Subcontractors can see contractors reviewing and approving applications for payment promptly, reducing the risk of work stoppages and missed delivery deadlines.\u201d<\/p>\n

One of Payapps\u2019 customers, Bouygues UK, has seen significant improvements in the visibility of the payment process. Deputy commercial director, Fabrice Davis, commented: \u201cThe system keeps track of all the applications directly received for the subcontractors and knowing they just have to submit them to one place definitely makes it easier for the subcontractors.\u201d<\/p>\n

Indeed Jim Howe, head of business development at Gtek and collaborating through Payapps on projects for Bouygues UK, said: \u201cPayapps has standardised the way we are making payment applications, keeping all payment applications in one place. It has minimised the human error impact in the process.\u201d<\/p>\n

Productivity resilience<\/h3>\n

Investing in construction technology can improve operational efficiencies, allowing time to focus less on administrative actions and more on strategic tasks. Access to real-time, accurate data allows businesses to improve workflows, cash flow and financial management.<\/p>\n

For example, Payapps\u2019 customer G F Tomlinson has reduced administration time significantly. Carl Wiltshire, Framework and Pre-Construction Development Manager, said, \u201cSince the integration of Payapps into our business the process of assessing payments, and issuing payment notices, has been cut by around 50%. It can literally take minutes to process an application, issue payment notices and make a payment.\u201d<\/p>\n

Likewise, technologies like Payapps help improve productivity resilience within the workforce. With skill and labour shortages, businesses are faced with finding new ways to attract and retain talent. In fact, LinkedIn reports that millennials will make up 75% of the global workforce by 2025. These digital natives are using their sway to drive technological change that makes work more efficient and are increasingly considering an organisation\u2019s embrace of technology and innovation as an important factor when choosing an employer.<\/p>\n

\u201c…for a subcontractor, clear visibility of the status of their submitted applications for payment is imperative, while for a contractor, transparency around supply chain payments and liabilities is key.\u201c<\/span><\/p><\/blockquote>\n

\u201cAttracting new talent is important,\u201d says Neal. \u201cBut so too is improving employee engagement and morale to reduce turnover. Outdated methods can be stressful to work with so technology and the digitisation of processes can help foster a healthy, connected and diversified workforce while increasing accuracy, efficiency and productivity.\u201d<\/p>\n

Adopting a more resilient construction business model<\/h3>\n

Several challenges have prevented the adoption of a more resilient business model: feeling too time-poor to review existing processes and explore alternatives; businesses being intimidated by the anticipated cost of construction technology; and a preference for the status quo.<\/p>\n

\u201cChange can feel daunting,\u201d says Neal. \u201cBut it\u2019s necessary to stay ahead of the pack and successful in this ever-changing climate. It\u2019s easy to hear talk of \u2018digital transformation\u2019 and feel overwhelmed, but it doesn\u2019t have to be all at once and the steps you take don\u2019t necessarily have to be difficult or time-consuming.<\/p>\n

\u201cTo introduce Payapps into your organisation, for example, is very quick and easy \u2013 there\u2019s no \u2018implementation\u2019 as such so you can improve your payment approval process within days, not months.\u201d<\/p>\n

Read more about the industry in the Payapps global research report<\/h3>\n

Payapps<\/a> is set to release a global research report, including UK and Ireland, that will outline the current challenges the contractors and subcontractors are facing and provide insights on how technology can play an essential part in building a more resilient business for the future. Neal says Payapps wants the market opinion to better understand the issues and developing trends, and to formulate a roadmap to build resilience through technology.<\/p>\n

Visit www.payapps.com<\/a> to subscribe to more expert insights and information about applications for payment and construction technology.<\/p>\n

*Please note: This is a commercial profile.\u00a0<\/em><\/p>\n

 <\/p>\n

Neal Hooks<\/strong><\/p>\n

Head of Payapps, UK&I<\/p>\n

Payapps<\/p>\n

0191 651 1765<\/p>\n

info@payapps.com<\/p>\n

www.payapps.com<\/p>\n

Linkedin<\/a><\/p>\n

Facebook<\/a><\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

Payapps head of UK and Ireland, Neal Hooks, explores how using construction technology to build a resilient business model can help construction firms absorb stress, recover critical functionality and thrive in altered 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