Theo Build announced the soft release of its new construction payment management software, with an official launch expected early Spring 2021.
With Theo Build, general contractors can automate their core invoicing and compliance processes, significantly reducing time, money and company resources spent on project payments to their subs.
“Invoicing and payments are a crucial piece to every construction project, yet they can be cumbersome and become a distraction for contractors, their project managers and their subs. Theo Build not only decreases the workload of the draw process for GCs but also minimizes the risk and errors, enabling contractors to focus on what they do best: building,” said Jammil Handal, CEO of Theo Build.
Theo Build’s user-friendly software automates the entire subcontractor-to-contractor invoicing cycle into a seamless monthly process. Implementing Theo Build takes 10-15 minutes and doesn’t require a long-term subscription. Furthermore, to ease the burden that adopting new software can have on companies, Theo Build’s team offers hands-on, white glove on-boarding to GCs and their subs.
Theo Build brings traditional AIA-style invoicing to the cloud, eliminating the need for manual, time-consuming spreadsheets. Project dashboards help you stay on top of your draws at all times with proactive notifications. Compliance documents like certificates of insurance and subcontractor W9s are collected into one central location, and lien waivers are systematically generated as an integrated part of the invoicing process.
Theo Build was founded in 2020 as a user-centric construction technology firm, sparked from Handal’s background in finance consulting and construction.
After almost a decade of working with and for fortune 500 companies, Handal started a millwork company in 2014 with the goal of scaling revenue to $1 million in the first year. The company transcended that goal and grew to over 60 employees by the third year. However, the experience helped Handal to realize a huge need in the construction industry: cash management.
“The invoicing process was tedious, flowing through multiple people. Often, construction companies go 100-120 days without being paid, so staying afloat and trying to finance growth is extremely difficult,” he said.
The idea came several years down the road while working with a large retailer who facilitated trade finance for their vendors as an integrated part of their accounts payable process. Handal recognized that the value of an effective solution of this sort in construction would have a tremendous impact particularly for smaller businesses. However, there were many complications in the current payment management practices which are heavily reliant on manual spreadsheets and emails that needed to be addressed.
Most solutions currently available are focused on large construction companies, while small and midsized contractors continue to stick with manual invoicing, which can become a barrier to truly scale their construction business, notably the administrative burden.
“We began talking to these successful companies about what their needs are and how we can help to create an environment of basic automation within their invoicing process,” Handal said. “Theo Build’s solution provides a simplified service that is easy and quick to use, designed with general contractors and their subs in mind.”
Theo Build’s beta release focuses on facilitating the core draw process between GCs and their subs including integrated lien waiver management and electronic payments which are designed to drive value to GCs quickly. Further enhancements of the tool will include accounting integration, additional payment solutions and vendor management products to be released over the next couple of months and into their official launch in the spring.
“We recognize that most people who enter the construction field don’t go into construction because they love construction accounting, but accounting is fundamental to a thriving business. Theo Build doesn’t seek to completely change their processes, but rather automate and simplify them,” Handal said. “With Theo Build, contractors can focus on their projects without needing a full finance team or spending hours each month manually chasing payments.”