Process Benefits from Day One
Mashburn immediately saw improvements in efficiency and process control, Parsons said. Rather than chasing down paper documents at various locations and spending hours trying to reconcile conflicting versions of payment materials, Mashburn’s project and accounting staff were able to use Oracle Textura Payment Management Cloud Service to process payments, modify subcontractor pay applications and resolve issues electronically—all in near real time. By creating a “single version of the truth” for every invoice and all related materials, Mashburn’s project team and all subcontractors had full visibility into payment and change order status, preventing overbilling and underbilling. In addition, the tracking of compliance materials greatly enhanced visibility for the project team in the field, and the ability to hold payment based on compliance status provided another key level of of control. With the workflows routing materials to the appropriate recipient at all stages of the process and automated notifications keeping everyone on track, Mashburn’s staff was able to become considerably more productive, the CFO said. “The cost benefit was evident in project one,” he said.
Mashburn’s efforts to proactively educate its subcontractors about the benefits of Oracle Textura Payment Management Cloud Service also paid off. “Every one of those subcontractors today is an advocate of Textura, because it helps them get paid faster,” Parsons said, noting that the improved transparency, better communication and faster payment enabled by Oracle Textura Payment Management Cloud Service have helped Mashburn strengthen its relationships with subcontractors.
Limiting the Cost of Growth
Following the successful pilot launch, Mashburn began rolling out Oracle Textura Payment Management Cloud Service to other projects, and the benefits multiplied. As the rollout continued, the team was frequently onsite, working closely with Mashburn to ensure that implementation was smooth, that project managers and administrators were properly trained, and that the company had a robust internal support system for new users. Within a year, the general contractor was fully implemented on Oracle Textura Payment Management Cloud Service. With virtually all of its projects using the solution, Mashburn was able to establish a standardized approach to payment management across its three offices.
As it continued to add new projects to Oracle Textura Payment Management Cloud Service, the general contractor began to see another significant benefit from using the solution on nearly all projects: Its business was growing considerably, but its accounting and administrative staff was not. “Textura’s system allowed us to increase our business substantially over a period of several years without adding to our accounting or administrative staff. That is remarkable. Using CPM has made a difference in terms of our margins and helped us to become even more profitable as we grow,” Parsons said.
Mashburn estimates that using Oracle Textura Payment Management Cloud Service on virtually all of its projects allows it to save the equivalent of 20 hours per month in accounting work for every 30 pay applications, compared with manual, paper-based processes. From a cost-benefit perspective, Mashburn considers Oracle Textura Payment Management Cloud Service “the fourth person in the accounting department, and that’s before you even start to quantify the benefits to the project management and administration teams,” Parsons said.
Project managers, he said, are saving roughly 6 hours per month by using Oracle Textura Payment Management Cloud Service. Mashburn’s four project administrators, meanwhile, are saving an average of 5 hours per month. Without Oracle Textura Payment Management Cloud Service, the general contractor would need another full-time equivalent PA staff member to manage its current workload, Parsons said.
This story was originally published on www.texturacorp.com.