construction draws utilizing electronic signatures saving time & money; delivering accurate...

Construction Draws Utilizing Electronic

Signatures

Saving Time & Money;Delivering Accurate Information; &

Reducing Risk

Presented By:Donohoe Construction Company &

Textura Corporation

©2008 Textura Corporation 2

This presentation contains confidential information of Textura Corporation and is protected by all applicable patents, copyright, trademark trade secret and similar intellectual property laws. Neither this document nor any of the information contained in this document may be reproduced or disclosed to any person under any circumstances without the express written permission of Textura Corporation. Copyright 2008. All rights reserved. Textura Corporation. Processes and technologies described in this document have US and Global Patents Pending.

©2008 Textura Corporation 3

Agenda

• Introductions

• Current Construction & Development Monthly Payment Process

• Textura Web-Based Construction Payment Process

• Customer Study: Donohoe Construction

• Benefits

• Implementation Lessons

• Textura Background Information

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Introductions

Mr. George Heacox, Donohoe Construction Company• Vice President, Finance

Washington, D.C.

Mr. Michael Egan, Textura Corporation

• Executive Vice President

Deerfield, Illinois

Mr. Bill Brice, AlphaTrust Corporation

• Chief Executive Officer

Dallas, Texas

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TODAY’S DRAW PRACTICES ARE INEFFICIENT & INSUFFICIENT

InternetBasedAccess

Audit Resolutions

Electro

nic

Sig

natu

resAutomated Notification

Bank

Owner/Developer

General Contractor ConsultantsArchitect

SupplierConcrete ContractorInterior ContractorOther Subs

Wk 1 Wk 2 Wk 8Wk 4 Wk 5 Wk 6 Wk 7 Wk 9 Wk 10Wk 3

Key

Draw Documents / Lien Waivers

Physical Checks (Disbursements)

Week 1-3: Subcontractors and Suppliers perform the work.

Week 4: Subcontractors and Suppliers deliver invoices and lien waivers to the General Contractor for review..

Week 5: Invoices sent back to the Subs for corrections.

Week 6: GC / Soft Cost Vendors deliver invoices to owner.Week 7: Owner reviews / approves invoices and submits their pay application to the Lender.

Week 8: Bank reviews application and disburses to the owner.

Week 9: Owner disburses to GC and Soft Cost Vendors.

Week 10: GC disburses to subcontractors who then pay suppliers.

Current Construction & Development Monthly Payment Process

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Textura Web-Based Construction Payment Process

Textura utilizes advanced Internet technology to join together some or all of the participants involved in the project payment process.

Project Manager / Contract

Administrator

Consultants

Contractors

Title Companies

Owner / Developer

Banks

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Textura efficiently processes construction payment transactions including all aspects of payment applications, invoices and payment compliance.

Provides controlled, structured process

Integrates each participant up/down the ‘payment chain’

Captures information into a common database

Applies applicable compliance requirements at each step

Configures each project uniquely to satisfy specific business requirements

Automates document production

Consultants

Owner / Developer

Banks

Main Contractor &

Specialty Contractors

Payment Applications &

Invoices

Construction Payment Process

Cash

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Textura Web-Based Construction Payment Process

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Donohoe’s Textura Journey Began 2 Years Ago

Donohoe began using Textura in mid-2006 on the Abingdon Heights condominium and townhouse development in Arlington.

Donohoe now has 10 active projects in Textura, ranging in value from $5M to $90M.

More than 200 Donohoe Subcontractors use Textura to electronically sign project documents.

Over 20 internal Donohoe personnel (Project Management and Project Accounting staff) use Textura for the monthly draw process.

©2008 Textura Corporation 20

Donohoe Projects Currently on Textura

Project Name Project Value # of Draws to Date

Abingdon Heights $90M 27

Park Place Office $13M 13

Residence Inn $44M 13

Hilton Garden Inn $33M 12

GWU Pelham Hall $41M 10

DOS Renovation $5M 5

Camden South Capital $56M 5

Yale Steam Apartment $42M 2

ZOM Clarendon $58M 1

2400 14th St., NW $55M 1

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Case Study: Abingdon Heights

Project Highlights:

Overall Project Budget: $89MM

Subcontractors & Suppliers: 50

Number of Draws: 27 (to date)

Electronic Signed Documents: 860+

Abingdon Heights: Arlington, VA

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Case Study: Abingdon Heights

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With Textura Improvement

• All subcontractor/project members’ billing documents and lien waivers are gathered electronically

• Frees staff from reviewing, correcting, faxing & collecting Lien Waivers

• Subs/Project Members create invoices – automatically uploaded to GC’s/Borrower’s accounting system via an interface

• Eliminates data entry of subcontractor/ project member invoices freeing accounting staffs

• Payments to Project Members can be made electronically

• Eliminates preparing, signing and distributing checks

• Pre-lien tracking centralized • Improves tracking of lien waivers; automatic emails/payment holds if missing

• Textura system can track signed contracts, safety/insurance forms, EEO compliance forms, etc.

• Automates tracking of documents; automatic emails/payment holds if missing; electronic submission & data filing

• Electronic communication • Dramatically reduces faxes, scans, phone calls and meetings

• Electronic document distribution • Saves Paper & copying documents

• Electronic document storage and search

• Saves on volumes of document storage; Improves retrieval ability

Benefits For General Contractors

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Benefits For Subcontractors & Material Suppliers

Less paper, lower costs• Accurate automated generation of Subcontractors’ AIA G702/703s, Sworn

Statements and Lien Waivers• Eliminates travel for document delivery & pick up – saving gas, parking fees,

tolls, waiting time• Eliminates the need for FedEx or wire transfer fees• Electronic document storage

Direct electronic payments• Direct ACH payments – immediately available funds• Potentially faster disbursement of funds • Email notification when payment has been sent

Lower risk; lower chance of delay• Lien Waivers matched with payment• Better project information and monitoring• Accurate math

Reduced GC/Sub tension

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Implementation Lessons

• Change Management is key to adoption

• It’s all about improving the process – Construction Payment Management

• Each participant (General Contractor, Subcontractor, etc.) has to realize some improvement/gain to willingly participate

• Early adopters are key

• Widespread adoption takes time

• Each user must have the opportunity to learn without time pressure

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Textura Background Information

Chicago, USA

Canada

Panama

Brazil

Abu Dhabi, UAEIndia

London, UKEuropean Office

China

Additional Initiatives

Head Office

Existing Offices (end 2008)

Phoenix, USA

Houston, USADubai, UAE

• Four years old with offices and initiatives around the world

• Current clients represent nearly $200 Billion in total projects under development

• Over 300 General Contractors & Developers and over 25,000 Subcontractors use the Textura system in North America, Europe, Middle East and Africa

• Projects in the system from $5,000 to > $15B

• Textura processes over $100M in construction payments monthly

First to Market – Innovative Payment and Cost Management Offering