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New research uncovers overbilling issues in construction

New research uncovers overbilling issues in construction

New research from Payapps, an award-winning construction software solution for progress claims, reveals that 64 per cent of construction projects experience overbilling. This alarming statistic underscores the urgent need for tighter financial controls in an industry already burdened by escalating costs due to labour shortages and material price hikes.

The report, Building the Future: Navigating Challenges and Opportunities for Quantity Surveyors and Contract Administrators, surveyed over 1,000 construction professionals. The findings indicate that overbilling is widespread, with 47 per cent of respondents encountering it occasionally and another 17 per cent experiencing it frequently.

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While 44 per cent of respondents expressed a desire to improve cost management, manual processes and time constraints often pose significant obstacles. The report highlights that technology plays a crucial role in overcoming these challenges, with 87 per cent of respondents finding contract variation management straightforward when using specialised construction software like Payapps.

Geoff Tarrant, co-founder of Payapps, emphasised the importance of addressing overbilling in the current economic climate. “The construction industry is facing a perfect storm of cost pressures,” said Tarrant. “Overbilling is not the cause of this crisis, but it does exacerbate it.”

Geoff Tarrant, co-founder of Payapps. (Image: Payapps)
Geoff Tarrant, co-founder of Payapps. (Image: Payapps)

“By automating time-consuming tasks like progress payment claims and greater visibility of contract variations, Payapps frees up valuable time for construction professionals to focus on strategic cost management initiatives.

“In today’s economic environment, precision in cost management is more critical than ever. Technology is revolutionising how we manage construction finances, making complex tasks like managing contract variations significantly more manageable.

“Payapps is not just a software solution; it’s a strategic tool for navigating the challenges of the modern construction landscape.”

The Building the Future report serves as a wake-up call for the construction industry, highlighting the urgent need to address overbilling. By adopting digital solutions and embracing technology, construction firms can improve financial controls, manage costs more effectively and navigate the challenges of the modern construction landscape.

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