How to Automate Construction Pay Applications
The general contractor on job site #473 called me in a panic at 2 PM Friday—subcontractor payments were due Monday, but we had three hundred hours of unapproved work floating in email threads and sticky notes. I didn’t have the authority to sign off without proper documentation, which meant paying nothing or paying incorrectly. Either way, our cash flow choked. This isn’t about bureaucracy; it’s about keeping the crew fed and equipment running when the checkbook is tight.
Before touching any software, document your exact process on paper. Where do time cards get approved? Who signs off on material receipts? What format does your owner require for the pay app? Most general contractors I’ve worked with discover their current workflow has three or four manual handoffs where data gets corrupted. Write down each touchpoint and identify which ones cause delays.
