In the fast-paced world of construction, accuracy and efficiency in financial processes can make or break a project’s success. One area that consistently challenges construction firms is the calculation of retainage – a critical component of project invoicing that ensures quality work completion. In this case study, we’re exploring how Horizon Builders, a mid-sized commercial construction firm based in Denver, Colorado, overcame this common hurdle with the help of innovative technology.
The Retainage Challenge
Sarah Chen is the owner and CEO of Horizon Builders. Her company, known for its precision in building high-end commercial spaces, was struggling with a crucial aspect of their operations: retainage calculations.
“Every month, our finance team would spend days on spreadsheets, manually calculating retainage across multiple line items for each project,” Sarah recalls. “It was time-consuming, prone to errors, and frankly, a significant drain on our resources.”
When a miscalculation led to a dispute with a major client, nearly jeopardizing a long-standing relationship. Sarah knew something had to change.
The Search for a Solution
Determined to find a better way, Sarah began researching solutions tailored to the construction industry. “We needed something that understood the nuances of construction accounting, particularly when it came to handling AIA G702 and G703 forms,” she explains.
That’s when Sarah discovered APARBooks, an accounting platform specifically designed for the construction industry. Intrigued by its promise to streamline retainage calculations and automate invoice generation, she decided to give it a try.
Implementing APARBooks: A Game-Changer
Within weeks, Horizon Builders had fully integrated the system into their financial processes. The impact was immediate and significant.
“What used to take our team days now takes minutes,” Sarah enthuses. “APARBooks automatically calculates retainage across all line items, ensuring accuracy and consistency. Even better, it generates AIA payment applications and invoices automatically.”
The benefits extended beyond just time savings. Sarah noticed a marked improvement in the accuracy of their financial documents, leading to fewer disputes with clients and subcontractors. The finance team, freed from manual calculations, could now focus on more strategic financial planning and analysis.
A Ripple Effect of Improvement
With more accurate and timely invoicing, cash flow improved significantly. Project managers, equipped with real-time financial data, could make more informed decisions on the job site.
“It’s not just about the numbers,” Sarah reflects. “It’s about the confidence we now have in our financial processes. When we submit an invoice, we know it’s accurate down to the last cent. That level of certainty is invaluable in our industry.”
Looking to the Future
For Sarah and the team at Horizon Builders, solving the retainage calculation challenge was just the beginning. With APARBooks as their financial foundation, they’re now exploring new ways to optimize their operations and take on larger, more complex projects.
“In construction, every detail matters,” Sarah concludes. “By mastering our retainage calculations with APARBooks, we’ve not only improved our financial accuracy but also strengthened our relationships with clients and partners. It’s been a transformative experience for our entire company.”
