UK payment platform ProjectPay has introduced a software-as-a-service (SaaS) platform to help simplify and streamline payments in the building and construction industry.
The platform – built on proprietary technology – is designed to remove risk and is supposedly the first end-to-end secure payment solution built specifically for employees of small and mid-sized construction businesses.
ProjectPay claims its platform enables all levels of the supply chain to be paid at the same time, which helps to remove the insolvency risk for contractors as well as speeding up payments to contractors and tradespeople as well as bolstering cashflow for building and constructions firms.
The platform also uses a smart tech and a cascading trust system to protect project funds for work completed by suppliers and subcontractors and links project accounts with the payment request, approval and payment process.
The company mentioned that the feature also enables project financiers to keep track of project capital provided and ensure all funds are being used appropriately.
Prior to launching, the system received a £100,000 Innovate UK grant and had also completed trials of its payment system on two projects in London.
ProjectPay’s platform has users across the UK and Australia and has offices in both markets. It has been tested by more than 100 subcontractors in Australia, with the platform trialled on projects including construction at Curtin University and Hollywood Hospital in Australia.
The ProjectPay payment platform was founded by Louise Stewart with the aim of minimising the occurrence of missed or delayed payments to tradesmen and subcontractors in construction project supply chains.
Stewart said, “ProjectPay’s cascading project accounts ensure payments for building works completed by small business contractors go to the people who did the work. Our solution also simplifies and secures the process where home owners use project managers to employ subcontractors and manage payments to contractors directly.”
ProjectPay said, “Through a cascading project account system, payments are made to head contractors and their subcontractors engaged on a project from separate project accounts. By removing the non-payment risk, ProjectPay is able to fund project accounts against contracts for works. It is currently the world’s only ‘buy now, pay later’ interest-free payment platform for building and construction projects.”
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