Construction payment management system and method with budget reconciliation features

Abstract

A system and method for managing a construction payment process. One method embodying the invention can include electronically creating a primary budget for a construction project including at least one first line item, electronically assigning the at least one first line item to a participant of the construction project, electronically creating a secondary budget for the at least one first line item, the secondary budget created for at least one of a general contractor, a subcontractor, and a material supplier and including at least one second line item, and automatically reconciling the primary budget and the secondary budget before administering a draw.

1 . A method of managing a construction payment process, the method comprising the acts of: 
 electronically creating a primary budget for a construction project including at least one first line item;    electronically assigning the at least one first line item to a participant of the construction project;    electronically creating a secondary budget for the at least one first line item, the secondary budget created for at least one of a general contractor, a subcontractor, and a material supplier and including at least one second line item; and    automatically reconciling the primary budget and the secondary budget before administering a draw.    
   
   
       2 . The method of  claim 1  and further comprising the act of creating at least one of an automated invoice, an automated sworn statement, and an automated lien waiver based on the primary budget including the at least one first line item and the secondary budget including the at least one second line item.  
   
   
       3 . The method of  claim 2  and further comprising the act of electronically executing at least one of the automated invoice, the automated sworn statement, and the automated lien waiver.  
   
   
       4 . The method of  claim 1  wherein the primary budget includes at least one of hard costs and soft costs and wherein the secondary budget includes only hard costs.  
   
   
       5 . The method of  claim 1  and further comprising the act of requesting acceptance of at least one of the primary budget and the secondary budget.  
   
   
       6 . The method of  claim 5  and further comprising the act of receiving at least one budget acceptance indication related to at least one of the primary budget including the at least one first line item and the secondary budget including the at least one second line item.  
   
   
       7 . The method of  claim 1  and further comprising the act of receiving a change order for at least one of the primary budget and the secondary budget.  
   
   
       8 . The method of  claim 7  and further comprising the act of requesting acceptance of the change order.  
   
   
       9 . The method of  claim 8  and further comprising the act of receiving at least one change order acceptance indication related to the change order.  
   
   
       10 . The method of  claim 1  wherein the primary budget and the secondary budget each include a project identifier and a contract amount.  
   
   
       11 . The method of  claim 1  wherein the primary budget includes a retention percentage value.  
   
   
       12 . The method of  claim 1  wherein the secondary budget includes a retention percentage value.  
   
   
       13 . The method of  claim 1  wherein the act of electronically creating a primary budget includes importing a primary budget.  
   
   
       14 . The method of  claim 1  wherein the act of electronically creating a secondary budget includes importing a secondary budget.  
   
   
       15 . A construction payment management system comprising: 
 a project module for creating and managing a construction project; and    a budget module for creating and maintaining a primary budget including at least one first line item for the project and for assigning the at least one first line item to a participant of the construction project and for creating and maintaining a secondary budget for the at least one first line item included in the primary budget, the secondary budget created for at least one of a general contractor, a subcontractor, and a material supplier and including at least one second line item, and wherein the budget module automatically reconciles the primary budget and the secondary budget before administering a draw.    
   
   
       16 . The construction payment management system of  claim 15  and further comprising a draw module for creating, scheduling, and managing draws for the construction project based on the primary budget.  
   
   
       17 . The construction payment management system of  claim 16  wherein the draw module generates at least one of an automated invoice, an automated sworn statement, and an automated lien waiver based on the primary budget.  
   
   
       18 . The construction payment management system of  claim 16  and further comprising an electronic lien waiver holding bin for receiving and storing lien waivers from participants in the draws.  
   
   
       19 . The construction payment management system of  claim 15  and further comprising an organization module for creating and maintaining information regarding participants in the construction project.  
   
   
       20 . The construction payment management system of  claim 19  wherein the organization module creates and maintains information regarding a plurality of participants including at least one of an owner, an owner's representative, a title company, a lender, an architect, an interior designer, an inspector, a general contractor, a subcontractor, a material supplier, a construction manager, an engineer, and a bonding company.  
   
   
       21 . The construction payment management system of  claim 15  and further comprising a system environment manager for configuring access, managing messages, creating reports, providing technical support, and managing interfaces with other software.  
   
   
       22 . The construction payment management system of  claim 15  and further comprising a user module for creating and updating users associated with participants.  
   
   
       23 . The construction payment management system of  claim 15  wherein the budget module customizes at least one of invoice codes, account codes, phase codes, and phase code descriptions.  
   
   
       24 . The construction payment management system of  claim 15  and further comprising a notifications manager for creating, editing, and transmitting notifications to participants.  
   
   
       25 . The construction payment management system of  claim 15  wherein the project module assigns a plurality of participants to the construction project.  
   
   
       26 . The construction payment management system of  claim 15  and further comprising a change order module for modifying at least one of the primary budget and the secondary budget and for approving modifications to at least one of the primary budget and the secondary budget.  
   
   
       27 . The construction payment management system of  claim 15  wherein the primary budget and the secondary budget each include a project identifier and a contract amount.  
   
   
       28 . The construction payment management system of  claim 15  wherein the primary budget includes a retention percentage value.  
   
   
       29 . The construction payment management system of  claim 15  wherein the secondary budget includes a retention percentage value.  
   
   
       30 . The construction payment management system of  claim 15  wherein the budget module imports at least one of the primary budget and the secondary budget.