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Connecting Owners and Contractors: How Technology Enables Connected Construction

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S M A R T M A R K E T BR IE F IMPROVING THE CONSTRUCTION PROGRESS AND PAYMENT PROCESS MOST VALUABLE WAYS TO IMPROVE THE PROGRESS AND PAYMENT Owners and contractors both have important roles and tasks in the overall progress and payment workflow. Each was asked which steps would most improve that workflow if it could be accelerated. ■ Owners see the responsibility for improvement falling between themselves and the contractors, with an almost even split between those who believe that accelerating the submission of progress payment requests by the contractors (73%) would be valuable and those who find that accelerating their own payment application approvals is important (72%). ■ Contractors, on the other hand, see the owners as the party most empowered to improve this process. Nearly all of them select payment of the contractor by the owner (94%) as the top step to accelerate to improve the overall process, and most also agree that speeding up the approval of payment applications by the owner is important. None of the steps under the control of the contractor were selected as important to accelerate by even half of the contractors surveyed. The close agreement between owners and contractors about the benefit of accelerating the approval of payment applications suggests that this is a major pain point that the industry should address. Challenges in the Process Submission of Progress Payment Requests by Contractor 73% 46% 72% 82% 55% 42% 45% 94% 40% 33% Approval of Payment Applications by Owner Validation of Construction Progress by Contractor Payment of Contractor by Owner Payment by Contractors of Employees, Trades and Suppliers Top Steps to Accelerate to Improve the Progress and Payment Process According to owners and contractors who are not satisfied with the progress and payment process © Dodge Data & Analytics w w w.construction.com Premier Par tner: e-Builder SmartMarket Brief: Connecting Owners and Contractors 11 Owners Contractors

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