Procore Technologies has signed a definitive agreement to acquire Levelset, a move which will add lien rights management to the Procore platform and enable it to manage complex compliance workflows.
The acquisition also presents future growth opportunities for Procore, including capitalising on the companies’ complementary data assets.
Procore Founder and CEO Tooey Courtemanche said, “Construction work is hard enough — getting paid shouldn’t be. Levelset helps the construction industry get paid faster, and their offering will be a perfect addition to the Procore platform. This acquisition will also give Procore access to industry data, including payments and compliance activity, allowing us to deliver valuable risk intelligence to our customers, and to develop innovative financial products.”
In construction, the risks and complexity of moving money between stakeholders can trap vast sums of working capital each year.
This can cause cash stress to contractors, increase their working capital and bonding expenses, and negatively impact construction jobs.
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According to Procore, burdensome compliance workflows contribute to the construction industry’s median of 90 days sales outstanding and 74 days payable outstanding, the slowest of all industries surveyed across the globe.
In the US, liens are foundational to these compliance workflows. Construction stakeholders spend considerable time and energy managing lien rights — from those downstream looking to preserve lien rights and having to comply with the nuances of lien law that varies from state to state, to upstream stakeholders constantly procuring lien waivers at the point of payment to ensure their projects are free and clear. Similar payment challenges and complexities also exist globally.
“Our solution gets people paid faster, with less cash stress,” Levelset CEO Scott Wolfe, Jr. said.
“Over 250,000 users have deployed Levelset on more than 6.5 million construction projects. This activity generates highly reliable payment and relationship data. Together with Procore, we can further empower the industry to get paid faster, with better visibility and smoother documentation.”
Levelset has been a Procore App Marketplace partner since April 2018. Today, more than 3300 customers use its lien rights management solution to manage compliance workflows.