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

• US 20060271478A1
• Filed: 07/12/2006
• Published: 11/30/2006
• 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:
  US11/485,545
• Publication Number:
  US 20060271478A1
• 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

A system and method for managing a construction payment process. One method embodying the invention can include creating an electronically-executed first request for payment on behalf of a first participant in a construction project, transmitting the first request for payment to a second participant in the construction project, creating an electronically-executed second request for payment based on the first request for payment, transmitting the second request for payment to a payment source in the construction project, directing transmitting a payment to the second participant from the payment source, and directly transmitting a payment to the first participant from the payment source.

Claims

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

creating an electronically-executed first request for payment on behalf of a first participant in a construction project;

transmitting the first request for payment to a second participant in the construction project;

creating an electronically-executed second request for payment based on the first request for payment;

transmitting the second request for payment to a payment source in the construction project;

directly transmitting a payment to the second participant from the payment source; and

directly transmitting a payment to the first participant from the payment source.

2. The method of claim 1 wherein the electronically-executed first request for payment includes at least one of an electronically-executed invoice and an electronically-executed sworn statement.

3. The method of claim 1 wherein the electronically-executed second request for payment includes at least one of an electronically-executed invoice and an electronically-executed sworn statement.

4. The method of claim 1 wherein the payment source includes at least one of an owner, a lender, a title company, a general contractor, and a subcontractor.

5. The method of claim 1 and further comprising the act of receiving approval of the first request for payment from the second participant.

6. The method of claim 1 and further comprising the act of receiving approval of the second request for payment from the payment source.

7. The method of claim 1 and further comprising the act of reconciling the first request for payment based on a budget of the construction project.

8. The method of claim 1 and further comprising the act of reconciling the second request for payment based on a budget of the construction project.

9. The method of claim 1 and further comprising the acts of receiving a lien waiver from the first participant and storing the lien waiver.

10. The method of claim 9 wherein the received lien waiver corresponds to payment requested for a current draw.

11. The method of claim 9 wherein the received lien waiver corresponds to payment requested for a prior draw.

12. The method of claim 9 and further comprising the act of electronically executing the lien waiver.

13. The method of claim 9 wherein the act of directly transmitting payment to the first participant includes transmitting to a payment system an instruction to pay the first participant and receiving from the payment system an acknowledgement that the first participant has received funds.

14. The method of claim 13 and further comprising the act of substantially simultaneously releasing the lien waiver after receiving the acknowledgement.

15. The method of claim 13 wherein the act of transmitting to a payment system an instruction to pay the first participant includes generating an automated payment instruction and transmitting the automated payment instruction to at least one of an automated clearing house system, a wire transfer system, a debit card system, a credit card system, and a check generating system.

16. The method of claim 1 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.

17. The method of claim 1 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.

18. The method of claim 1 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.

19. The method of claim 1 and further comprising the acts of generating a budget for the construction project and automatically generating at least one of the first request for payment and the second request for payment based on the budget.

20. The method of claim 19 and further comprising the act of generating at least one of an automated sworn statement and an automated lien waiver based on at least one of the first request for payment and the second request for payment.

21. A construction payment management system comprising:

an application server storing a draw module, the draw module generating an electronically-executed first request for payment on behalf of a first participant in a construction project, transmitting the first request for payment to a second participant in the construction project, generating an electronically-executed second request for payment on behalf of the second participant based on the first request for payment, transmitting the second request for payment to a payment source, directly transmitting a payment from the payment source to the first participant, and directly transmitting a payment from the payment source to the second participant.

22. The construction payment management system of claim 21 wherein the electronically-executed first request for payment includes at least one of an electronically-executed invoice and an electronically-executed sworn statement.

23. The construction payment management system of claim 21 wherein the electronically-executed second request for payment includes at least one of an electronically-executed invoice and an electronically-executed sworn statement.

24. The construction payment management system of claim 21 wherein the payment source includes at least one of an owner, a lender, a title company, a general contractor, and a subcontractor.

25. The construction payment management system of claim 21 wherein the draw module receives approval of the first request for payment from the second participant.

26. The construction payment management system of claim 21 wherein the draw module receives approval of the second request for payment from the payment source.

27. The construction payment management system of claim 21 and further comprising a budget module for reconciling the first request for payment based on a budget of the construction project.

28. The construction payment management system of claim 21 and further comprising a budget module for reconciling the second request for payment based on a budget of the construction project.

29. The construction payment management system of claim 21 and further comprising an electronic holding bin receiving and storing a lien waiver from the first participant.

30. The construction payment management system of claim 29 wherein the lien waiver corresponds to payment requested for a current draw.

31. The construction payment management system of claim 29 wherein the lien waiver corresponds to payment requested for a prior draw.

32. The construction payment management system of claim 29 and further comprising an electronic signature service to electronically execute the lien waiver.

33. The construction payment management system of claim 29 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 wherein the draw module transmits an automated instruction to pay the plurality of participants when all of the plurality of lien waivers are received.

34. The construction payment management system of claim 29 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 the draw module transmits an automated instruction to pay each one of the plurality of participants when each one of the plurality of lien waivers is received.

35. The construction payment management system of claim 29 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 the draw module 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.

36. The construction payment management system of claim 29 wherein the draw module directly transmits a payment to the first participant by generating and transmitting to a payment system an automated instruction to pay the first participant and by receiving from the payment system an acknowledgement that the first participant has received funds.

37. The construction payment management system of claim 36 wherein the draw module substantially simultaneously releases the lien waiver after receiving the acknowledgement.

38. The construction payment management system of claim 36 wherein the payment system includes at least one of an automated clearing house system, a wire transfer system, a debit card system, a credit card system, and a check generating system.

39. The construction payment management system of claim 21 and further comprising a budget module for generating a budget for the construction project.

40. The construction payment management system of claim 39 wherein the draw module generates at least one of the first request for payment and the second request for payment based on the budget.

41. The construction payment management system of claim 40 wherein the draw module generates at least one of an automated sworn statement and an automated lien waiver based on at least one of the first request for payment and the second request for payment.