Tracking payment amounts & sworn statements for lower-tier subcontractors
Lower-tier payment amoun & sworn statement tracking are releasing in mid-April! ⚡
General contractors can start using Flashtract to track the amount of payments being given to lower-tier subcontractors within the app. This helps prevent communication issues, late payments and unexpected lien claims.
What is payment amount tracking for lower-tier subcontractors and suppliers?
Flashtract is offering more transparency and control for the GC into this process. General Contractors can automate lower-tier tracking, and automate their documentation.
This management tool allows GCs to configure settings that allow prime subcontractors to build their list of lower-tiers, as well as provide information on payment amounts. In turn, Flashtract is able to populate documents such as supplier lists, sworn statements and affidavits. Additionally, GCs can be sure that the subcontractors are paying their lower-tiers, and enforce lien waiver collection during those time periods.
How can I track payments being given for lower-tier subcontractors and suppliers?
📋 Step 1
First, configure document requirements for lower-tier subcontractors in each project.
➕ Step 2
Next, lower-tier subcontractors can be added into Flashtract by either the general contractor or the prime subcontractor.
💸 Step 3
Then, the prime subcontractor will add estimated payment amounts for their lower-tiers when they submit their invoice.
🧾 Step 4
Using that information, Flashtract automatically generates a sworn statement or supplier list for your subcontractor.
🖋️ Step 5
When they receive it, the sub electronically signs the sworn statement and submits their invoice.
Why does this matter?
Lien waivers are intended to protect you from unnecessary lien claims when a subcontractor is not paid. But tracking these documents can be extremely time consuming. This is especially true for lower-tier subcontractors you don’t have a direct contractual relationship with. Additionally, even with lien waivers, time and resources are drained, and professional relationships strained, when these contracts are not properly paid out.
Normally, because lower-tiers are hired by subcontractors, the general contractor doesn’t have visibility into this relationship, or if the prime sub is adequately paying lower-tiers. An unpaid subcontractor will most likely file a lien, adding unforeseen costs to the project.
To help mitigate risks for companies, general contractors should be able to easily see who has submitted lien waivers- and ensure that every subcontractor on the job is paid- even if they were subcontracted by a prime subcontractor. This way, the GC has the ability to prevent any issues before a lien claim can be filed.
How does this service benefit you?
⚡ Reduces the amount of slow or late payments between contractor tiers
⚡ Avoid lengthy disputes or legal battles
⚡ Improve payment turnaround time & transparency
Flashtract’s lower-tier payment tracking means that your company can prevent disputes and better manage subcontractor relationships. Each project clearly and concisely displays any payments that subcontractors (and their subs) have received.
Watch it in action
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