PRZOOM - /newswire/ -
Chicago, IL, United States, 2009/02/19 - Innovative Sub-Tier Lien Waiver technology manages financial and legal risk while providing automated administration and tracking of lien waivers on construction projects - TexturaCorp.com.
Furthering its dedication to improving processes in construction invoicing and payment through technology innovation, Textura Corporation today announced the availability of Sub-Tier Lien Waiver Collection functionality, a new Textura Construction Payment Management application capability that provides enhanced functionality to address general contractor and owner / developer needs for electronic collection of sub-tier subcontractor’s and supplier’s lien waivers even when they are not invoicing or being paid through the Textura system.
The new service is a significant extension of Textura’s Construction Payment Management application. Sub-Tier Lien Waiver Collection delivers signed sub-tier and supplier lien waivers to primary subcontractors and general contractors electronically. Depending on the configuration selected, general contractors can elect to pay the sub-tier organizations directly or to pay the prime subcontractor who then pays the sub-tier organizations. Likewise, invoice collection from sub-tier organizations can be electronically submitted or manual. This important new capability reduces risk while improving everyone’s efficiency.
One of the most important elements of the Textura service is providing 3rd party credibility for simultaneous electronic transfer of the lien waiver and payment. Patrick Allin, Textura CEO, explains, “This eliminates the need to physically exchange the waiver for payment resulting in improved efficiency. For most contractors it can also eliminate the need for conditional waivers further driving efficiencies in today’s process. In essence we develop a trusted relationship with all of our clients to ensure maximum benefit from our technology.”
In the face of potential general contractor and subcontract bankruptcies or defaults, many Textura clients are implementing 2nd, 3rd and even 4th tier subcontractor lien waiver collection. Owners and financial institutions as well as general contractors like the assurance of knowing that they have the required protection in case of default by higher tier subcontractors. Sub-tier subcontractors like direct communication with the general contractor for exactly the same reason.
“Customers told us they wanted Textura to develop a solution for sub-tier waiver collection – even when the sub-tiers were not invoicing or being paid through the Textura system,” said Allin. “Risk management in today’s environment is worth its weight in gold. This capability provides risk mitigation, centralized lien waiver collection, standardized process and policy, improved visibility and streamlined workflow for sub-tier lien waiver collection and tracking.”
The current economy makes it more important for GCs, owners and developers to manage risk. GCs are typically at risk if prime subs fail and have not paid their sub-tiers. Owners, developers, financial institutions and insurance companies are increasingly requiring sub tier lien waivers on new projects and sometimes on existing projects. Textura offers the perfect electronic solution.
“General contractors are either experiencing problems created by contractor defaults or worried about them, said Herb Brownett, SVP, Sales & Industry Solutions at Textura, past National Chairman of the Construction Financial Management Association (CFMA) and a driving force behind the establishment of the Institute of Certified Construction Industry Financial Professionals (ICCIFP). In every major city we hear stories about a prime subcontractor bankruptcy. For example, a general contractor in the South was on the hook for $150,000 in December to sub-tier contractors and suppliers after a long-standing prime contractor went bankrupt. Another general contractor in the West found that signatures were being forged on lien waivers from sub-tiers. Today’s financial challenges are creating unprecedented cash flow and financing problems in the industry.”
“Almost all of our clients have indicated that they will take advantage of Sub-Tier Waiver Collection, said Allin. With this new functionality we have demonstrated an ability to rapidly respond to changing market conditions by delivering needed solutions to ensure the highest level of enhanced capability. We have a commitment to our clients to respond to their issues, continue to deliver to a superior value proposition and to support them with outstanding service.”
More information about Sub-Tier Lien Waiver Collection is available at the Textura Corporation website.
Founded in 2004, Textura (texturacorp.com) has developed the only robust, end-to-end offering that integrates all construction payment management process components into one seamless work flow, helping contractors and others involved in construction projects realize significant benefits from automation and streamlining.