Construction payment management system and method

• US 20050289051A1
• Filed: 01/10/2005
• Published: 12/29/2005
• Est. Priority Date: 06/29/2004
• Status: Abandoned Application

• Current Assignee: Textura LLC (Oracle Corporation)
• Original Assignee: Textura LLC (Oracle Corporation)
• Inventors: Eichhorn, William H., Allin, Patrick J., Niden, Howard L., Pedersen, Richard P. Jr., Bagley, Matthew R., Cherry, Charles C., Flynn, Michael L.
• Application Number:
  US11/032,699
• Publication Number:
  US 20050289051A1
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06F 3/0484 for the control of specific functions or operations, e.g. selecting or manipulating an object, an image or a displayed text element, setting a parameter value or selecting a range
• CPC Class Codes: G06Q 10/00 Administration; Management
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 10/0631 Resource planning, allocation, distributing or scheduling for enterprises or organisations
• CPC Class Codes: G06Q 10/06313 Resource planning in a project environment
• CPC Class Codes: G06Q 10/103 Workflow collaboration or project management
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/00 Commerce
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G06Q 50/08 Construction
• CPC Class Codes: G06Q 50/16 Real estate

Abstract

System and method for managing a construction payment process. One method embodying the invention can include allowing a participant to receive a payment associated with a project by accessing registration information. A method can include generating a real-time notification of a draw. Another method can include generating an automated invoice including one or more line items. Still another method can include automatically generating a sworn statement including dollar amounts from automated invoices. Yet another method can include receiving an acknowledgement that a participant has received funds and substantially simultaneously releasing a lien waiver. Another method embodying the invention can include reconciling a primary budget and secondary budgets including line items before administering a draw.

Claims

1. A method of managing a construction payment process, the method comprising the acts of:

receiving registration information for a participant;

storing the registration information; and

transferring to the participant a payment associated with a construction project by accessing the registration information.

2. The method of claim 1 and further comprising the act of receiving registration information for a participant 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, and a material supplier.

3. The method of claim 1 and further comprising the act of receiving registration information for at least one user associated with the participant.

6. The method of claim 1 and further comprising the act of the participant providing the registration information.

7. The method of claim 1 and further comprising the act of verifying the participant.

8. The method of claim 1 and further comprising the act of transmitting a notification that the participant has been registered.

9. The method of claim 1 and further comprising the act of storing registration information in a database server and accessing the registration information with a database management system.

10. The method of claim 1 and further comprising the act of transferring to the participant a plurality of payments associated with a plurality of projects by accessing the registration information.

11. The method of claim 1 and further comprising the acts of generating an automated payment instruction and transferring to the participant a payment using one of an automated clearing house system, a wire transfer of funds, a debit card system, and a credit card system.

4. The method of claim I and further comprising the act of registering a first user associated with the participant and deeming the first user the administrator for the participant.

5. The method of claim 4 and further comprising the act of registering a second user associated with the participant.

12. A construction payment management system comprising:

an application server that stores an organization module and a database management system, the organization module receiving organization registration information for a participant; and

a database server connected to the database management system, the database server storing the organization registration information, the database management system accessing the organization registration information in order to transfer to the participant a payment associated with a construction project.

13. The construction payment management system of claim 12 wherein a first participant provides organization registration information for a second participant.

14. The construction payment management system of claim 12 wherein the participant includes 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, and a material supplier.

15. The construction payment management system of claim 12 wherein the application server stores a user module, the user module receives user registration information for at least one user associated with the participant, and the database server stores the user registration information.

16. The construction payment management system of claim 15 wherein the user module receives user registration information from a first user associated with the participant and deems the first user the administrator for the participant.

17. The construction payment management system of claim 16 wherein the user module receives user registration information from a second user associated with the participant.

18. The construction payment management system of claim 12 wherein the participant provides the registration information.

19. The construction payment management system of claim 12 and further comprising a verification service connected to the application server, the verification service verifying the participant.

20. The construction payment management system of claim 12 and further comprising a notifications manager stored in the application server, the notifications manager transmitting a notification that the participant has been registered.

21. The construction payment management system of claim 12 and further comprising a database server connected to the application server, the database server storing the organization registration information, the database management system accessing the registration information from the database server.

22. The construction payment management system of claim 12 wherein the database management system accesses the organization registration information in order transfer to the participant a plurality of payments associated with a plurality of projects.

23. The construction payment management system of claim 12 and further comprising a payment system connected to the application server and a draw module stored in the application server, the draw module transmitting an automated payment instruction to the payment system, the payment system including one of an automated clearing house system, a wire transfer system, a debit card system, and a credit card system.

24. A method of managing a construction payment process, the method comprising the acts of:

establishing communication with a plurality of participants in a construction project;

generating a notification of a draw; and

electronically transmitting in real-time the notification to the plurality of participants.

25. The method of claim 24 and further comprising the act of establishing communication with a plurality of participants including at least two of a general contractor, a subcontractor, a lender, a title company, a property owner, a property owner'"'"'s representative, an inspector, an architect, an interior designer, and a material supplier.

26. The method of claim 24 and further comprising the acts of creating and maintaining a schedule of draws for the construction project.

27. The method of claim 24 and further comprising the acts of generating automated invoices for each one of the plurality of participants receiving a payment in the draw and transmitting notifications regarding approval of the automated invoices.

28. The method of claim 24 and further comprising the acts of generating automated lien waivers for each one of the plurality of participants receiving a payment in the draw and transmitting notifications regarding execution of the automated lien waivers.

29. The method of claim 24 and further comprising the acts of generating an automated sworn statement;

transmitting a notification regarding execution of the sworn statement, approval of the draw, and disbursement of funds; and

generating an automated payment instruction.

30. A construction payment management system comprising:

an application server that stores a notifications manager and a draw module, the notifications manager and the draw module generating a notification of a draw, the notifications manager electronically transmitting in real-time the notification to a plurality of participants.

31. The construction payment management system of claim 30 wherein the plurality of participants includes at least one of a general contractor, a subcontractor, a lender, a title company, a property owner, a property owner'"'"'s representative, an inspector, an architect, an interior decorator, and a material supplier.

32. The construction payment management system of claim 30 wherein the draw module maintains a schedule of draws for the construction project.

33. The construction payment management system of claim 30 wherein the draw module generates automated invoices for each one of the plurality of participants receiving a payment in the draw;

and the notifications manager transmits notifications regarding approval of the automated invoices.

34. The construction payment management system of claim 30 wherein the draw module generates automated lien waivers for each one of the plurality of participants receiving a payment in the draw;

and the notifications manager transmits notifications regarding execution of the automated lien waivers.

35. The construction payment management system of claim 30 wherein the draw module generates an automated sworn statement and an automated payment instruction;

and the notifications manager transmits a notification regarding execution of the sworn statement, approval of the draw, and disbursement of funds.

36. The construction payment management system of claim 30 and further comprising a database server connected to the application server, the database server storing organization registration information, the notifications manager accessing the organization registration information in order to transfer notifications to the plurality of participants.

37. A method of managing a construction payment process, the method comprising the acts of:

generating a budget for a construction project; and

generating at least one automated invoice, an automated sworn statement, and at least one automated lien waiver based on the budget.

38. The method of claim 37 and further comprising the act of generating a budget including a plurality of line items and generating an automated invoice including at least one of the plurality of line items.

39. The method of claim 37 and further comprising the act of generating a budget including at least one of soft costs above a line of a general contractor and hard costs below a line of a general contractor.

40. The method of claim 37 and further comprising the act of transmitting a notification regarding approval of the automated invoice.

41. The method of claim 37 and further comprising the act of ensuring that the automated sworn statement and the at least one automated lien waiver correspond to the at least one automated invoice.

42. The method of claim 37 and further comprising the act of ensuring that a sum of invoice dollar amounts equals a sworn statement dollar amount.

43. The method of claim 37 and further comprising the act of ensuring that an invoice dollar amount equals a lien waiver dollar amount.

44. The method of claim 37 and further comprising the act of customizing at least one of the at least one automated invoice, the automated sworn statement, and the at least one lien waiver according to at least one of participant requirements and state legal requirements.

45. The method of claim 37 and further comprising the act of electronically executing the at least one automated invoice, the automated sworn statement, and the at least one automated lien waiver.

46. The method of claim 37 and further comprising the act of generating the at least one automated invoice, approving the at least one automated invoice, subsequently generating the automated sworn statement, approving the automated sworn statement, and subsequently generating the at least one lien waiver.

47. The method of claim 37 and further comprising the act of storing electronic copies of electrically executed invoices, sworn statements, and lien waivers.

48. The method of claim 47 and further comprising the act of generating a hard copy of an electrically executed invoice, sworn statement, or lien waiver.

49. A method of managing a construction payment process, the method comprising the acts of:

receiving at least one invoice from at least one subcontractor; and

automatically generating a sworn statement of a general contractor including a dollar amount from each one of the at least one invoices.

50. The method of claim 49 and further comprising the act of electronically executing the at least one invoice and the sworn statement.

51. A construction payment management system comprising:

an application server that stores a budget module and a draw module, the budget module generating a budget for a construction project, the draw module generating at least one automated invoice, an automated sworn statement, and at least one automated lien waiver based on the budget.

52. The construction payment management system of claim 51 wherein the budget module generates a budget including a plurality of line items;

and the draw module generates an automated invoice including at least one of the plurality of line items.

53. The construction payment management system of claim 51 wherein the budget module generates a budget including at least one of soft costs above a line of a general contractor and hard costs below a line of a general contractor.

54. The construction payment management system of claim 51 and further comprising a notifications manager stored in the application server, the notifications manager transmitting a notification regarding approval of the automated invoice.

55. The construction payment management system of claim 51 wherein the draw module ensures that the automated sworn statement and the at least one automated lien waiver correspond to the at least one automated invoice.

56. The construction payment management system of claim 51 wherein the draw module ensures that a sum of invoice dollar amounts equals a sworn statement dollar amount.

57. The construction payment management system of claim 51 wherein the draw module ensures that an invoice dollar amount equals a lien waiver dollar amount.

58. The construction payment management system of claim 51 wherein the draw module customizes at least one of the at least one automated invoice, the automated sworn statement, and the at least one lien waiver according to at least one of participant requirements and state legal requirements.

59. The construction payment management system of claim 51 wherein the draw module generates the at least one automated invoice, ensures that the at least one automated invoice is approved, subsequently generates the automated sworn statement, ensures that the automated sworn statement is approved, and subsequently generates the at least one lien waiver.

60. The construction payment management system of claim 51 and further comprising a database management system stored in the application server and a database server connected to the application server, the database server storing electronic copies of electrically executed invoices, sworn statements, and lien waivers.

61. The construction payment management system of claim 51 wherein the draw module generates a hard copy of an electrically executed invoice, sworn statement, or lien waiver.

62. The construction payment management system of claim 51 wherein the draw module is used to electronically execute the at least one automated invoice, the automated sworn statement, and the at least one automated lien waiver.

63. A method of managing a construction payment process, the method comprising the acts of:

receiving a lien waiver from a participant in a construction project;

storing the lien waiver;

transmitting to a payment system an instruction to pay the participant; and

receiving from the payment system an acknowledgement that the participant has received funds and substantially simultaneously releasing the lien waiver.

64. The method of claim 63 and further comprising the acts of generating an automated payment instruction and transmitting the automated payment instruction to one of an automated clearing house system, a wire transfer system, a debit card system, and a credit card system.

65. The method of claim 63 and further comprising the acts of receiving a plurality of lien waivers from a plurality of participants, storing each one of the plurality of lien waivers until all of the plurality of lien waivers are received, and transmitting an instruction to pay the plurality of participants when all of the plurality of lien waivers are received.

66. The method of claim 63 and further comprising the acts of receiving a plurality of lien waivers from a plurality of participants, storing each one of the plurality of lien waivers, and transmitting an instruction to pay each one of the plurality of participants when each one of the plurality of lien waivers is received.

67. The method of claim 63 and further comprising the acts of receiving a plurality of lien waivers from a plurality of participants, storing each one of the plurality of lien waivers, transmitting a first instruction to pay at least one of the plurality of participants when at least one of the plurality of lien waivers is received, and transmitting a second instruction to pay at least one other of the plurality of participants when all of the plurality of lien waivers are received.

68. The method of claim 63 and further comprising the acts of receiving and releasing the lien waiver corresponding to work performed for a current draw.

69. The method of claim 63 and further comprising the acts of receiving and releasing the lien waiver corresponding to a current month'"'"'s work for a current month'"'"'s draw.

70. The method of claim 63 and further comprising the acts of electronically executing at least one of the plurality of lien waivers.

71. A method of managing a construction payment process, the method comprising the acts of:

receiving a lien waiver from a participant in a construction project; and

transmitting to a payment system an instruction to pay the participant and substantially simultaneously releasing the lien waiver.

72. The method of claim 71 and further comprising the acts of generating an automated payment instruction and transmitting the automated payment instruction to one of an automated clearing house system, a wire transfer system, a debit card system, and a credit card system.

73. The method of claim 71 and further comprising the acts of receiving a plurality of lien waivers from a plurality of participants, storing each one of the plurality of lien waivers until all of the plurality of lien waivers are received, and transmitting an instruction to pay the plurality of participants when all of the plurality of lien waivers are received.

74. The method of claim 71 and further comprising the acts of receiving a plurality of lien waivers from a plurality of participants, storing each one of the plurality of lien waivers, and transmitting an instruction to pay each one of the plurality of participants when each one of the plurality of lien waivers is received.

75. The method of claim 71 and further comprising the acts of receiving a plurality of lien waivers from a plurality of participants, storing each one of the plurality of lien waivers, transmitting a first instruction to pay at least one of the plurality of participants when at least one of the plurality of lien waivers is received, and transmitting a second instruction to pay at least one other of the plurality of participants when all of the plurality of lien waivers are received.

76. The method of claim 71 and further comprising the acts of receiving and releasing the lien waiver corresponding to work performed for a current draw.

77. The method of claim 71 and further comprising the acts of receiving and releasing the lien waiver corresponding to a current month'"'"'s work for a current month'"'"'s draw.

78. The method of claim 71 and further comprising the acts of electronically executing the lien waiver.

79. A construction payment management system comprising:

an application server storing an electronic holding bin and a draw module, the electronic holding bin receiving and storing a lien waiver from a participant in a construction project, the draw module generating and transmitting to a payment system an automated instruction to pay the participant, the draw module receiving from the payment system an acknowledgement that the participant has received funds and substantially simultaneously releasing the lien waiver.

80. The construction payment management system of claim 79 and further comprising a notifications manager that transmits an automated instruction to one of an automated clearing house system, a wire transfer system, a debit card system, and a credit card system.

81. The construction payment management system of claim 79 wherein the electronic holding bin receives a plurality of lien waivers from a plurality of participants and stores each one of the plurality of lien waivers until all of the plurality of lien waivers are received;

and further comprising a notifications manager that transmits an automated instruction to pay the plurality of participants when all of the plurality of lien waivers are received.

82. The construction payment management system of claim 79 wherein the electronic holding bin receives a plurality of lien waivers from a plurality of participants and stores each one of the plurality of lien waivers;

and further comprising a notifications manager that transmits an automated instruction to pay each one of the plurality of participants when each one of the plurality of lien waivers is received.

83. The construction payment management system of claim 79 wherein the electronic holding bin receives a plurality of lien waivers from a plurality of participants and stores each one of the plurality of lien waivers;

and further comprising a notifications manager that transmits a first instruction to pay at least one of the plurality of participants when at least one of the plurality of lien waivers is received and a second instruction to pay at least one other of the plurality of participants when all of the plurality of lien waivers are received.

84. The construction payment management system of claim 79 wherein the electronic holding bin and the draw module receive and release the lien waiver corresponding to work performed for a current draw.

85. The construction payment management system of claim 79 wherein the electronic holding bin and the draw module receive and release the lien waiver corresponding to a current month'"'"'s work for a current month'"'"'s draw.

86. The construction payment management system of claim 79 and further comprising an electronic signature service to electronically execute the lien waiver.

87. A method of managing a construction payment process, the method comprising the acts of:

creating a primary budget for a construction project including at least one secondary budget from at least one of a general contractor, at least one subcontractor, and at least one material supplier, the at least one secondary budgets each including at least one line item; and

reconciling the primary budget and the at least one secondary budget including the at least one line item before administering a draw.

88. The method of claim 87 and further comprising the act of creating at least one of automated invoices, an automated sworn statement, and automated lien waivers based on the primary budget, the at least one secondary budgets, and the at least one line item.

89. The method of claim 88 and further comprising the act of electronically executing the automated invoices, the automated sworn statement, and the automated lien waivers.

90. The method of claim 87 and further comprising the act of creating a primary budget including at least one of hard costs and soft costs.

91. The method of claim 87 and further comprising the act of creating at least one secondary budget including only hard costs.

92. A construction payment management software comprising:

a project module for creating and managing a project;

a budget module for creating and maintaining a budget for the project; and

a draw module for creating, scheduling, and managing draws for the project based on the budget.

93. The construction payment management software of claim 92 and further comprising an organization module for creating and maintaining information regarding participants in the project.

94. The construction payment management software of claim 92 and further comprising a change order module for modifying the budget and for approving modifications to the budget.

95. The construction payment management software of claim 92 and further comprising an electronic lien waiver holding bin for receiving and storing lien waivers from participants in the draws.

96. The construction payment management software of claim 92 and further comprising a system environment manager for configuring access, managing messages, creating reports, providing technical support, and managing interfaces with other software.

97. The construction payment management software of claim 92 and further comprising a user module for creating and updating users associated with participants.

98. The construction payment management software of claim 92 and further comprising a budget module for customizing at least one of invoice codes, account codes, phase codes, and phase code descriptions.

99. The construction payment management software of claim 92 and further comprising a notifications manager for creating, editing, and transmitting notifications to participants.

100. A graphical user interface for a construction payment management system, the graphical user interface comprising:

at least one of a project schedule progress bar, a funds disbursed progress bar, and a percent complete progress bar;

the project schedule progress bar indicating progress with respect to calendar dates;

the funds disbursed progress bar indicating progress with respect to a budget dollar amount; and

the percent complete progress bar indicating progress with respect to a percentage of work completed on a construction project.

101. The graphical user interface of claim 100 and further comprising a project home page customized for a participant.

102. The graphical user interface of claim 100 wherein the project home page includes each one of the project schedule progress bar, the funds disbursed progress bar, and the percent complete progress bar.

103. The graphical user interface of claim 100 and further comprising at least one of a new message indicator, information regarding completed draws, and information regarding pending draws for the participant.