MELBOURNE, Australia, July 02, 2024 (GLOBE NEWSWIRE) — A staggering 64% of construction projects experience overbilling, according to a new report released by Payapps, an award-winning construction software solution trusted by thousands of main contractors and subcontractors to simplify and standardise progress payment claims. This alarming figure underscores the need for tighter financial controls in an industry grappling with soaring costs due to labour shortages and material price hikes.
The report “Building the Future: Navigating Challenges and Opportunities for Quantity Surveyors and Contract Administrators” surveyed over 1,000 construction professionals and found that overbilling is widespread. The findings reveal that 47% of respondents occasionally face overbilling, with another 17% experiencing it frequently. While 44% of respondents desired to improve cost management, manual processes and time constraints often hampered them.
“The construction industry is facing a perfect storm of cost pressures,” said Geoff Tarrant, Co-Founder of Payapps. “Overbilling is not the cause of this crisis, but it does exacerbate it. By automating time-consuming tasks like progress payment claims and greater visibility of contract variations, Payapps frees up valuable time for construction professionals to focus on strategic cost management initiatives.”
Payapps users are already seeing the benefits. The report found that 87% of those who find contract variation management straightforward use specialised construction technology like Payapps. By streamlining complex tasks and reducing manual overhead, Payapps empowers construction firms to take control of their finances and protect their bottom line.
“In today’s economic environment, precision in cost management is more critical than ever,” added Tarrant. Technology is revolutionising how we manage construction finances, making complex tasks like managing contract variations significantly more manageable,” said Tarrant. Payapps is not just a software solution; it’s a strategic tool for navigating the challenges of the modern construction landscape.”
To access the complete Building the Future report, click here. The global survey was conducted by Payapps and included responses from professionals from commercial construction companies in Australia, Ireland, New Zealand, Singapore, and the United Kingdom. Payapps thanks their global partners, including the Australian Institute of Quantity Surveyors and the New Zealand Institute of Quantity Surveyors, for asking their members to participate in this survey.
About Payapps Payapps, an Autodesk Company, is a cloud-based collaboration tool for the construction industry. It helps main contractors and subcontractors simplify and expedite progress payment claims for construction projects, including variations and retentions. A simpler and faster digital process ensures greater transparency, increased accuracy, improved compliance, reduced financial risk, fewer disputes, and fairer outcomes. Payapps significantly cuts progress payment claim approval times while helping meet regulatory requirements. Compliance is improved and made easier with documentation verification integrated with the approval process. Seamless integration with a wide range of project, construction and financial management software helps provide real-time data on all project payment requests and approvals.
Geoff Tarrant, Co-Founder of Payapps, emphasises the need for tighter financial controls and digital solutions to combat the issue of overbilling in the construction industry.
A photo accompanying this announcement
