Prompt payment is a hot topic within the construction industry and many will be aware that big changes are coming into effect from 1st July 2021. This is due to the tightening of the Prompt Payment Code, as signatories are now obliged to pay small firms within 30-days.
This is a huge change from the previous 60-day period and comes into effect as several businesses within the sector were suspended from the scheme for failing to pay suppliers in a timely manner.
Relieving some of the pressures on small businesses, the changes have been introduced to help Britain ‘build back better’ – ensuring suppliers are paid on time and protecting jobs within the sector.
Open ECX offers innovative, cloud-based solutions that can make this transition seamless for your team. The WebContractor portal helps to revolutionise payments within the construction industry, allowing for a simple, end-to-end management process of subcontractor applications for payment. Taking away time spent on manual admin work, WebContractor creates an automated workflow to manage the end to end process of calculation, reconciliation, approval, payment and audit. The solution also automates key processes such as Self Billing, Authenticated VAT Receipts and Sub Contractor Purchase Orders.
The transparent management process, which sends prompts and notifications to ensure payments are made on time, allows for stronger, working partnerships between contractors, subcontractors and suppliers, whilst substantially reducing the risk of late payments.
Within the eHub, Open ECX provide eInvoicing – which can also help your business prepare for this change and make the processes much simpler. eInvoicing is a supplier-friendly, online way to send and receive electronic invoices – used by some of the biggest contractors and suppliers in the industry. Enabling the automation of the Accounts Payable function, offers a faultless, end-to-end, paperless invoice system that eliminates costly manual methods.
eInvoices can be processed and received within minutes, instead of days when using a manual method or OCR, enabling Prompt Payment. Open ECX’s solution can also convert Supplier Delivery tickets or Advanced Shipping Notices (ASN’s) to an eGRN transaction for processing within the Contractors back office – rather than a team member manually doing it, risking key-in errors. The platform can also help with the 3-Way matching process often adopted by Contractors to support Prompt Payment.
Finally, our eGRN mobile app will link to the Contractors back office, allowing full acceptance or quantity draw down against the Purchase Orders, resulting in a real-time proof of delivery and electronic Goods Receipts.
For further information on Open ECX’s products and how switching to a digital system can help make payment processes quicker, more straightforward and more reliable, please contact email@example.com