In this communication, we take a deeper dive into a valuable GCPay feature you may not be familiar with, but could greatly benefit from! 

The Shift to ePayment: How GCs are Saving Time, Cutting Costs, and Reducing Risk

In a GCPay research survey from 2022, over 60% of general contractors reported paying subcontractor payment applications by paper check still. According to checkbook.com, the three biggest problems with legacy payment methods in construction are:

Cash Flow Constraints

1. General contractors and subcontractors operate on tight cash flow cycles. Delayed payments disrupt their ability to pay workers, buy materials, and keep projects running on schedule.
2. According to a report by Levelset, over 80% of construction businesses deal with cash flow issues due to slow payments.

High Administrative Costs

1. Processing paper checks and manual payments requires significant administrative effort.
2. Payment disputes over unclear invoices or misfiled paperwork add to overhead costs.

Legal and Compliance Risks

1. Payment delays often result in mechanics liens, legal disputes, and damage to business relationships.
2. Compliance with state and federal laws regarding contractor payments adds further complexity.

GCPay built an ePayment solution to help these general contractors migrate to ePayment. In 2024, GCPay saw a 79% increase in dollars beings transacted within the ePayment service from the year prior. In 2024, GCPay users moved $242M in payments versus $135M in 2023. This shows that many general contractors are indeed moving toward ePayment for payment applications.

The custom development of this feature makes it uniquely friendly for general contractors. Key features include the ability to manage payments at the project level or company level, depending on how your accounts payable department operates. Also, the ability to queue a batch of payments prior to creating a transfer, is done quickly and easily by a designated role for each general contractor. A lot of general contractors are still paying subcontractors’ invoices by paper check or ACH.

The three biggest benefits to GCPay’s ePayment and Waiver Exchange feature are:

1. Saving Time & Money: Move from paper checks with faster digital payments
2. Reducing Risk: Securely store subcontractor bank details in GCPay
3. Simplifying Waivers: Get signed waivers instantly upon payment receipt