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