Construction payment management system and method with hierarchical invoicing and direct payment features

Abstract

A construction payment management system stores project data stored on a computer-readable memory for a plurality of construction projects. The system accesses stored project data for a first construction project and electronically generates a first request for payment on behalf of a first participant in the first construction project in response to information received by the application server from the first participant. The first request for payment is generated based at least in part on the accessed project data and is displayed to a general contractor for the first construction project. A payment is initiated from a project owner for the first construction project to the first participant based on the first request for payment after receiving approval of the request for payment from the general contractor. The stored project data stored is then updated based on the payment made to the first participant.

1 . A construction payment management system comprising an application server including a processor and a computer readable memory storing instructions that, when executed by the processor, cause the application server to:
 access project data stored on the computer-readable memory for a first construction project of a plurality of construction projects managed by the construction payment management system,   electronically generate a first request for payment on behalf of a first participant in the first construction project in response to information received by the application server from the first participant and based at least in part on the accessed project data,   display the first request for payment to a general contractor for the first construction project,   receive an approval of the first request for payment from the general contractor,   initiate a payment from a project owner for the first construction project to the first participant based on the first request for payment subsequent to receiving the approval from the general contractor, and   update the project data stored on the computer-readable memory based on the payment made to the first participant.   
     
     
         2 . The construction payment management system of  claim 1 , wherein the instructions, when executed by the processor, further cause the application server to:
 display the project data stored on the computer-readable memory only to a plurality of participants associated with the first construction project, the plurality of participants including the first participant, the general contractor, and the project owner, and   prevent users of the construction payment management system that are not associated with the first construction project from accessing the project data stored on the computer-readable memory.   
     
     
         3 . The construction payment management system of  claim 1 , wherein the first participant includes a contractor that is contractually subordinate to the general contractor for the first construction project, and wherein the general contractor is contractually subordinate to the project owner for the first construction project. 
     
     
         4 . The construction payment management system of  claim 1 , wherein the project owner includes at least one selected from a group consisting of an owner of a real property subject to the first construction project, an architect, a bank, and a property management company. 
     
     
         5 . The construction payment management system of  claim 1 , wherein the electronically generated first request for payment includes an invoice. 
     
     
         6 . The construction payment management system of  claim 1 , wherein the project data stored on the computer-readable memory includes a budget for the first construction project, the budget including a plurality of line items, wherein the request for payment includes a requested payment amount, and wherein the instructions, when executed by the processor, cause the application server to generate the first request for payment by defining the requested payment amount based on one or more line items from the budget. 
     
     
         7 . The construction payment management system of  claim 6 , wherein the instructions, when executed by the processor, further cause the application server to generate the first request for payment by automatically including a line item from the budget that has been confirmed as completed by the project data stored on the computer-readable memory. 
     
     
         8 . The construction payment management system of  claim 7 , wherein the information received by the application server from the first participant includes a confirmation that a line item from the budget has been completed. 
     
     
         9 . The construction payment management system of  claim 6 , wherein the project data stored on the computer-readable memory includes an identification of a participant associated with the first construction project that is assigned to a first line item of the plurality of line items of the budget, and wherein the instructions, when executed by the processor, further cause the application server to allow changes to a first line item of the budget stored on the computer-readable memory only after receiving approval of the change from the general contractor and from the participant associated with the first construction project that is assigned to the first line item. 
     
     
         10 . The construction payment management system of  claim 6 , wherein the project data stored on the computer-readable memory includes an identification of a participant associated with the first construction project that is assigned to a first line item of the plurality of line items of the budget, and wherein the instructions, when executed by the processor, cause the application server to generate the first request for payment by defining the requested payment amount based on the first line item from the budget only if the project data stored on the computer-readable memory indicates that the first line item is assigned to the first participant. 
     
     
         11 . The construction payment management system of  claim 1 , wherein the instructions, when executed by the processor, further cause the application server to:
 electronically generate a second request for payment on behalf of the general contractor subsequent to receiving approval of the first request for payment, the second request for payment including a first payment amount from the first request for payment and a second payment amount from at least one additional request for payment submitted by a second participant associated with the first construction project and approved by the general contractor, the second request for payment being generated based at least in part on the accessed project data,   display the second request for payment to the project owner, and   receive approval of the second request for payment from the project owner,   wherein the instructions, when executed by the processor, cause the application server to initiate the payment from the project owner to the first participant by initiating the payment in response to receiving the approval of the second request for payment from the project owner.   
     
     
         12 . The construction payment management system of  claim 11 , wherein the instructions, when executed by the processor, further cause the application server to initiate a second payment from the project owner for the first construction project to the second participant based on the at least one additional request for payment in response to receiving the approval of the second request for payment from the project owner. 
     
     
         13 . The construction payment management system of  claim 1 , wherein the instructions, when executed by the processor, further cause the application server to receive an executed lien waiver from the first participant, and wherein the instructions, when executed by the processor cause the application server to initiate the payment only after receiving the executed lien waiver from the first participant. 
     
     
         14 . The construction payment management system of  claim 1 , wherein the instructions, when executed by the processor, further cause the application server to:
 track outstanding lien waivers associated with the first construction project,   receive a plurality of lien waivers associated with the first construction project, and   initiate the payment only when all outstanding lien waivers associated with the first construction project are received by the application server.   
     
     
         15 . The construction payment management system of  claim 1 , wherein the instructions, when executed by the processor, cause the application server to initiate the payment by sending an instruction for payment through an automated clearing house system. 
     
     
         16 . The construction payment management system of  claim 1 , wherein the instructions, when executed by the processor, cause the application server to initiate the payment by sending an instruction for payment through a wire transfer system. 
     
     
         17 . The construction payment management system of  claim 1 , wherein the instructions, when executed by the processor, cause the application server to initiate the payment by displaying an instruction to the project owner to make the payment to the first participant. 
     
     
         18 . The construction payment management system of  claim 1 , wherein the instructions, when executed by the processor, cause the application server to initiate the payment to the first participant by initiating the payment only after receiving an executed lien waiver document from the first participant, and further cause the application server to:
 receive an acknowledgement from the project owner that the payment has been transferred to the first participant, and   display the executed lien waiver document to the project owner only after the application server receives the acknowledgement that the payment has been transferred to the first participant.