How to Streamline Progress Claims in Construction

Managing progress claims manually can be complex, time-consuming and stressful for payers and payees. But with the right software, you can reduce risk, save time, and improve accuracy and consistency, all without losing time and productivity on the job site. Read on as we explore these in more detail.

Challenges of manual process claim management

Managing progress claims manually is inherently time-consuming. But Misty Cronin, Head of Sales at Payapps, says tackling progress claims manually can also add a layer of complexity and risk for construction companies.

“Our customers tell us that the average progress claim takes two to four hours to process,” Cronin said.

“You can see how quickly, even for a small company processing 50 claims per month, this adds up. Progress claims also touch many different people in an organisation - it’s a risk-laden process with a lot of handling.”

Human error can also lead to inaccuracies in claims processing. These errors not only prolong the resolution time but also have the potential to impact customer satisfaction and trust in the process.

In addition, manual processes cannot provide real-time insights and updates, making it challenging for organisations to track the status of claims efficiently. This can result in delays in decision-making, communication gaps with stakeholders, and overall inefficiencies in claim resolution.

Benefits of digitising progress claims

Risk reduction

Unlike manual processes, digital progress claim solutions excel in performing automated calculations and validations. These systems leverage advanced algorithms to accurately calculate payment amounts, assess project milestones, and verify compliance with contractual terms and conditions. This mitigates the risk of financial losses and reduces the likelihood of regulatory penalties and reputational damage due to inaccurate payments.

When designed and built with compliance in mind, digital progress claim solutions also ensure that all claims are done by the book. Advanced solutions even provide automated compliance checks and alerts of any potential discrepancies, enabling timely corrections and reporting. This allows construction companies to mitigate regulatory risks, avoid penalties and uphold trust and credibility with stakeholders.

Time savings

One of the key advantages of digitising progress claims is the substantial time savings it offers. Automation streamlines labour-intensive tasks, such as data entry, document processing, and approval workflows, reducing manual effort and turnaround times. Even for larger construction companies, transitioning to a new system has been known to reduce admin from hours to minutes.

Digitised progress claims enable faster processing and approvals by eliminating bottlenecks, manual interventions, and paper-based workflows. When implemented correctly, these solutions can streamline the entire claim lifecycle, from submission to approval. Electronic document management capabilities also facilitate easy access, retrieval, and sharing of claim-related documents, reducing delays and administrative overhead.

Improved accuracy and compliance

Digitisation eliminates manual errors associated with traditional progress claim processes by leveraging automated validation checks, data cleansing techniques, and error detection mechanisms. These digital systems ensure data accuracy by validating manual inputs against predefined rules, formats, and thresholds.

Automated data validation tools can flag incomplete forms, duplicate entries, or incorrect data formats, prompting users to correct errors before submission. This can improve data integrity, reduce rework and disputes, and enhance operational efficiency and customer satisfaction.

Digitisation promotes the standardisation of claim submissions by enforcing consistent formats, templates, and workflows across projects and departments. Some solutions offer predefined templates, checklists, and guidelines that guide users through the claim submission process, ensuring the completeness and accuracy of information. By standardising claim submissions, organisations can improve data quality, facilitate easier analysis and reporting, and enhance stakeholder collaboration and communication.

The future is all digital

The shift towards digital progress claims in construction offers many benefits that extend beyond mere efficiency gains. By embracing digital solutions, companies can effectively mitigate risk, enhance compliance, reduce administrative overhead, and improve their data's overall accuracy and integrity.

Ultimately, digitising the progress claim process is not just about embracing technology; it’s about empowering organisations to achieve operational excellence and deliver exceptional services on and off the construction site.

How much smarter and faster could your construction company work? Connect with Trimble Viewpoint and find out!