Pay-When-Paid

Introduction

Why Pay-When-Paid?

In present scenario, it is almost inevitable for any construction industry to subcontract its project or part of project to selected group of subcontractors. As mentioned above, it is usual practice in construction industry to pay the subcontractor when payment is received from the client. Unlike merchandise business, payment in construction industry is usually based on actual work completed on the project site and not based on the invoice received. An invoice will be created matching the payment received and subsequently subcontractor vouchers will be created based on the actual work performed by individual subcontractor on the site. Almost every construction company or any company, which is subcontracting the job, is passing through the above phase with minor variations. PWP is an automatic process, which integrates as many as five modules of JD Edward OneWorld Xe to create this functionality and its impact on the overall business. These modules are:

 a) General Accounting
 b) Accounts Payable
 c) Accounts Receivable
 d) Job Costing
 e) Subcontract Management


Another common jargon in construction industry is "Retainage" and "Bond". PWP application will take care Retainage in either direction (i.e. Held by Client & Hold to the Subcontractor). Similarly, Bond amount is also taken care during application design phase. Tradition is to pass-on the Retainage or Bond held by the client to the Subcontractors, this functionality can also be provided in PWP using linear formula.

Advantages of Pay-When-Paid

1. Automatic process

    a) Least human intervention - Less Error-prone
    b) Avoids tedious manual work - Improves efficiency

2. Single Point Entry (Centralized Application - "PayWhenPaid" Workbench)

    a) Cleaner Approach to manage business processes
    b) Better control over estimate management
    c) Incomplete Estimate details can be retrieve at any time

3. Manages Retainage and Bond
4. Easier navigation to AR, AP, GL, Subcontract systems
5. Minimal custom modification to standard OneWorld Xe Application
6. Minimal ESU and software upgrade impact
7. Driver information performs integrity check with AR, AP, GL and Job Costing

Approach - PWP Workbench or Estimate Workbench

PWP has many custom programs and job streams to enable the current functionality. During these job streams data is passed across the custom or standard OneWorld applications. R S InfoCon proposes a "PWP Workbench" or "Estimate Workbench", which becomes a single point entry for PWP application. This is a centralized application, which has interface with all other application related to PWP.

Concept is similar to the Object Management Workbench (OMW) in OneWorld, which can control all the objects in OneWorld in single interface. Sample screenshot of the PWP workbench is shown below. Please be advised that Workbench shown in this picture is very elementary and can be modified or enhanced based on the client requirement.



A Custom table is required to hold the estimate data such as: Estimate To Date, Invoice Date, Estimate#, Retainage Amount, etc shown in above application. Once the estimate is entered in its entirety, numbers of raw exits are provided to call different process related to the PWP in predefined order.
Estimate Workbench provides flexibility of navigation between AR, AP, GL, and Subcontract system of OneWorld. It also keeps integrity of data across the application as it passes data using raw exits.

R S InfoCon and PWP

R S InfoCon:

a) Introduced concept of "Pay-When-Paid" Workbench, which was hailed by management and end-client. The client made a presentation based on the same concept in "Focus/Quest 2003", which also has reference of R S InfoCon, Inc.
b) Involved from conceptual phase of PWP project
c) Prepared Detail Design of the PWP application
d) Successfully coordinating with client to implement PWP application
e) Personal attention from qualified employees
f) Very competitive rates
g) Has experience in PWP project implementation
h) Charges 30-40% less for same application compare to medium scale company
i) Has proven track record, which is testified by one of the "Fortune-500" company.
j) Understands the business needs of client.