The Australian Constructors Association’s endorsement of faster payments and other collaborative solutions to address cost escalation in construction is an actionable roadmap for contractors and industry.
Earlytrade witnesses on-demand payments for subcontractors making the industry more productive and more sustainable every day.
Manual early settlements have been around forever. However, by removing the manual requirement, Earlytrade has delivered material benefits for thousands of contractors and subcontractors.
The fastest way to combat inflation
Through Earlytrade, builders have made over a billion dollars in liquidity available to subcontractors for early settlements.
During FY22, subcontractor registrations on Earlytrade tripled, and demand for early settlements jumped more than 800%, providing crucial cash flow to manage projects more effectively.
Earlytrade connects to any ERP, reducing integration times to within days or weeks. The network effect of Earlytrade’s 80,000 business marketplace also means that 30 to 50% of any contractor’s subcontractors will already be on Earlytrade.
Subcontractors report that faster cash flow on Earlytrade helped them:
- Reduce or avoid unnecessary debt
- Take on new projects
- Hire new employees or retain employees
Industry solutions that work
The solutions outlined in the ACA’s submission to the Productivity Commission represent best practice in the construction industry and can be implemented today.
According to recently released ABS research, construction businesses that invest in innovation are three times more likely to improve profitability, productivity, and available cash flow than those that don’t.
“There’s a new enthusiasm to implement smart solutions to old problems, particularly among contractors,” said Guy Saxelby, CEO and Co-founder at Earlytrade.
“The obvious consensus is that the industry needs to do more with less, and contractors that are getting on with innovation are reaping productivity dividends.
“As Australia’s construction industry faces an opportunity of a lifetime by way of record investment, sector-specific technology such as Earlytrade has never been more important to help builders and subcontractors deliver projects sustainability and profitably.”
‘Construction cost inflation: Ways to address an escalating issue’, Australian Constructors Association