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Construction Payment Management Systems vs ERPs I UK

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Construction payment management systems and ERPs are two distinct types of software used by construction companies; but what are they and what are the differences between them?

Construction ERP systems

Enterprise Resource Planning systems (ERP’s) are software packages developed for organisation management. Some ERP systems are industry agnostic while others are specifically built for the unique requirements of construction companies. These systems often cover an array of areas from asset and financial management, to logistics and scheduling.

Essentially, they consolidate all business-critical data into one system, allowing users to see exactly what’s going on in real-time. By providing instant access to all information, it helps a construction business to manage construction projects more cost-effectively and to ensure the timely completion of projects.

The benefits of construction ERP software

Using an ERP system for your construction business can really set you apart from those who don’t. With all the necessary information at your fingertips, it allows you to be flexible and responsive to any changes or issues that may arise, as well as enabling you to run each project more efficiently.

We all know the complexity of construction projects requires excellent planning and project management, and an ERP system can assist by allowing you to monitor each aspect of the project in real-time and helping to control budgetary allocation and expenses.

This in turn also allows management to accurately estimate costs and revenue, making it much easier to control company finances and cash flow. Add to that the fact that with all data stored in one place, accessing and sharing information is simple, removing the need for multiple documents and files to be waded through, and allowing everyone to work much more efficiently and therefore cost-effectively.

Construction payment management

Construction payment management software exists to streamline the entire subcontractor payment process. This software replaces manual handling of applications for payment, facilitates collaboration between multiple parties, and provides real-time visibility into cash flow.

The benefits of Construction Payment Management systems

Visibility of anticipated and due payments is key for an accurate understanding of your cashflow position and liabilities. A Construction payment management system can provide true transparency of real-time values and timings in relation to notice submissions, variations, retentions, and payment for both your company and your supply chain.

The construction industry is notoriously fraught with risk, so it makes sense to digitise your payment processes to reduce your risk exposure by having the earliest possible insight into all liabilities With automated workflows and reminders, a construction payment management system helps to ensure compliance with state-based security of payment legislation, helping avoid unnecessary adjudication and safeguarding against subcontractor payment disputes.

Construction payment management systems can also help to remove friction between parties and reduce time spent administering, recording, and archiving applications and associated documentation, cutting processing costs by around 50%.

Key differences between ERPs and Construction Payment Management systems

Both ERPs and Construction Payment Management systems are critical to ensuring an efficient, well-managed, and productive construction business. Once your data is input into your ERP system, you then have all the tools you need to manage your construction business. However, a Construction Payment Management system is crucial to complement your ERP as it enables you to digitise that which currently is not digital. Construction ERP software does not extend outside of your own organisation, so those businesses who decide to only invest in an ERP will find that their subcontractor payment processes remain unimproved.

As the saying goes, ‘If you can measure it, you can control it’. Construction Payment Management software digitises the messy, manual application for the payment process, making visible those liabilities that are currently unknown for the majority of construction businesses.


Payapps is a Construction Payment Management system that will complement your ERP. It provides a better way to manage and certify construction applications for payment, making the process more streamlined and efficient.

Within Payapps’ single, centralised solution, your supply chain can submit applications in a consistent format while intuitive workflows allow you to work efficiently with your colleagues throughout the certification process.

Real-time reports enable you to analyse historic assessments and the value of applications in progress. Central storage allows full auditability while integration with your construction finance software and ERP aligns data across your systems, meaning no re-keying of information. Plus, as Payapps is completely cloud-based, it can be accessed at any time from anywhere, allowing applications to be easily submitted, valued, and approved.

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