The Benefits of Digitizing your Draws
In part, the goal of construction technology innovation is to optimize the tasks involved in the draw process. The non-digitized draw process has been a time-consuming stressor for borrowers, builders, and lenders for decades. Construction management software seeks to streamline and expedite tasks by digitizing various functions and enabling individuals involved to view the project details in real time.
A draw request is a combination of invoices, receipts, budgets, change orders, inspections, and lien releases. There are many documents, individuals, and companies involved in this process. Creating and fulfilling a draw request was, and still is in many cases, a tedious, labor-intensive task that required intentional preparation and careful planning. While the requirements of requesting a draw hasn't changed, and the documentation required remains thorough, the process can be simplified by providing a platform of communication where documents and project information can be accessed, requested, and altered by the main parties of the project at any time.
The traditional draw process includes manual entries, paperwork being passed from hand to hand, time delays, constant communication between everyone involved, among other things. There are a slew of potential disruptions, delays, and problems included in each step of the non-digitized version of the draw process. Ultimately, it’s very common to lose the trust and business of your subcontractors and suppliers due to these inefficiencies. This will increase the risk that your construction project doesn’t progress as originally planned or, in some cases, at all.
Digitizing your draw process will enable builders, lenders, and borrowers to upload and view documents, view and request approvals, and have control of all aspects of the draw process from the job site or wherever you are. This streamlined software results in on time payments to your subcontractors, suppliers, and service providers, which not only helps with labor retention, but also reduces risk and results in lien-free project completion.
“According to studies, if construction companies invest in digitization while also embracing new materials and advanced automation, they could see a 50-60% increase in overall productivity.” Construction is one of the last industries to implement software. Other industries that have already implemented technology have seen consistent productivity increases. “It’s been estimated that catching up with the progress made by other sectors or the overall economy over the last 20 years could increase the construction industry's value added by $1.6 trillion per year.”
To summarize, the draw process can be a time-consuming endeavor that demands a lot from the builder, with the constant risk of hitting a snag at any stage. But by automating various processes, construction management software prevents these mistakes and reduces manual labor. The borrower, builder, and lender can now take advantage of a platform that expedites the construction draw process from start to finish. These efficiencies result in greater financial savings, lower risk, and increased organization and productivity in the field.