Vendor - Stages , Payments and work Efforts

Vendor stages and payments in construction

Construction is a very complex domain .Success of a construction work depends on multiple factors .

Vendor(subcontractor) plays a major role in this. Between a vendor and builder , work is agreed on multiple stages .

Also , the payment is also agreed for each stage based on some standard rates .

The rates are agreed between builder and subcontractor.

And , then the execution starts.

Whenever a work is progressed to certain level , the builder team reviews and then release the payment for the same . The payment is adjusted against the stage payment. The process continues for all the works progressed and also for all the stages agreed.

Following the above process provides clarify to builder as well as Vendor too.

As both agree to the terms and conditions before commencing work , this becomes very effective and useful.

SiteExpensify System implements the above.

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Vendor(Subcontractor) work Effort Tracking in Construction

Most of the construction work is executed by subcontractors. A project success primarily depends on subcontractor work.

Vendors work has to be monitored on day today basis for quality as well as for completion. The work done by the vendors have to be logged everyday. Also , the number of subcontractor workers attendance also to be logged.

This is needed for 2 purposes .

1. Reviewing the vendors work with respect to agreed work order . i.e.Agreed Vs Actual

2. Payment settlement on a fixed interval during the agreed period for work progressed

3. Quality of work delivered.

Managing this with multiple subcontractors and in multiple sites is very tough.

So , a System is needed to manage this fully.

If the system is not there , there is high chance for losing money for the construction company ,

as the process becomes complex with multiple vendors and multiple sites .

And the settlement to vendor is done on agreed stages.

SiteExpensify implements this.