Construction and building payment platform ProjectPay has launched a new solution to remove risk and simplify payments in the building and construction industry.
The company says the platform, built on proprietary technology, is the first end-to-end secure payment solution built specifically for employers of SME construction firms.
After receiving a £100,000 Innovate UK grant and completing trials of its payment system on two projects in London, worth a combined total of £27m, the system is now live.
The Innovate UK fund was granted to ProjectPay as part of the British government’s sustainable economic recovery plan.
The government has also advocated the transformation of digital payments and the use of project accounts in its Construction Playbook plan.
Under the hood
The SaaS platform enables all levels of the supply chain to be paid at the same time, thereby removing contractors’ insolvency risk.
ProjectPay says this allows for faster payments to contractors and tradespeople and improves cashflow for building and construction SMEs.
The system works by using smart tech and a proprietary cascading trust system to protect project funds for work completed by subcontractors and suppliers, linking cascading project accounts with the payment request, approval, and payment process.
With users across the UK and Australia, the system is integrated with Lloyds Bank and ANZ Bank for project account provisions.
The platform was founded by Louise Stewart, former chair of an Australian Subcontractors Association.
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.”
With offices in Soho, London and Perth, Western Australia, ProjectPay says it is now looking to scale up rapidly in the UK with ‘best fit’ capital partners and venture capital firms within the start-up community.
Image: Campaign Creators/Unsplash
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