Claims:We Claim:
1. A computer implemented method of managing a construction invoice process, the method comprising of:
a. establishing electronic communication between a first participant device and a construction project management server
b. generating a budget for a construction project and storing the generated budget on a computer-readable memory;
c. receiving the construction project management server, an invoice amount from the first participant device;
d. automatically generating the construction project management server, an automated invoice document and an automated sworn statement document based on the invoice amount and the budget;
e. transmitting the at least one automated lien waiver document to the first participant through the first participant device;
f. transmitting the automated sworn statement document to a second participant through a second participant device;
g. electronically executing the automated sworn statement document in response to receiving an authorization from the second participant legally-binding sworn statement; and
h. electronically executing the at least one automated lien waiver document in response to receiving an authorization from the first participant to create a legally binding lien waiver.
2. The method of claim 1 wherein, the invoice amount includes a percentage of work completed.
3. The method of claim 1 wherein, the generated budget includes a plurality of line items and wherein the automated invoice document includes at least one of the pluralities of line items.
4. The method of claim 1 wherein, the generated budget includes at least one of costs of an organization not employed by a general contractor of the construction project and costs of an organization employed by the general contractor.
5. The method of claim 1 wherein, the acts of receiving an approval of the automated invoice document from a third participant and automatically transmitting a notification regarding the approval of the automated invoice to the first participant device.
, Description:Technical Field of the Invention
The technical field of the invention deals with construction invoice and invoice management system in an account on a website that is financial transaction process, where user can include an electronic signature service and an application server that stores a budget module and a draw module.
Background of the Invention
Residential and commercial construction projects require several organizations to communicate with one another in order to distribute invoices. A conventional construction invoice management process begins with a verbal notification that a draw from the construction loan or the property owner's account will take place.
The general contractor (GC) of the construction project notifies subcontractors (or any other person, firm, or corporation engaged by the GC, such as material suppliers) of the draw by telephone, fax, or at a meeting. The subcontractors prepare invoices and send them to the GC by mail, fax, hand delivery, or at a meeting with the GC. The GC and the subcontractors often must negotiate the final invoice dollar amount by telephone or at meetings. The GC confirms the invoices, enters the details into a GC project accounting system, and prepares its own invoice. Once the invoices are complete, the GC also manually prepares a sworn statement. In the sworn statement, the GC confirms that the subcontractors engaged by the GC have performed services in the construction or repair of the property. In the sworn statement, the GC also confirms the dollar amount entitled to each subcontractor.
The GC forwards the executed sworn statement to the title company and the construction loan lender and/or the property owner. The lender, the property owner, or the title company notifies an inspector that an inspection of the property must be performed and sends the sworn statement to the inspector. The inspector assembles the previous inspection reports for the property. The inspector performs the new inspection and manually prepares an inspection report. The inspector distributes the inspection report to the lender, the property owner, and/or the title company by fax, mail, or hand delivery.
The lender, the property owner, and/or the title company receives the sworn statement and the inspection report by mail, fax, hand delivery, or at a meeting with the GC and/or the inspector. The lender, the property owner, and/or the title company must retrieve the previous draw and project documentation. The lender, the property owner, and/or the title company often must negotiate the invoice amounts and project details with the GC by telephone, fax, or at a meeting. The lender, the property owner, and/or the title company approves the sworn statement and communicates the approval by telephone, fax, or at a meeting. The lender or the property owner then approves the disbursement of the dollar amount specified in the sworn statement. The construction loan lender or the property owner's bank generally transfers the funds necessary to pay all the subcontractors to an escrow account. Often the title company then disburses the funds from the escrow account to the GC. The GC and/or the title company prepares checks for the subcontractors. At this time, the subcontractors generally complete lien waivers for the previous draw of funds from the construction loan or for the work completed during the previous month. As a result, the lien waivers for the current draw or the current month are not actually released until a subsequent draw is made from the construction loan or until the next month. In addition, subcontractors may have their own subcontractors that they must pay after receiving invoice from the GC.
The conventional construction invoice process can take 90 days or longer from the date of the verbal draw notification to the date the subcontractors receive invoice. The conventional construction invoice process generally involves unreliable verbal notification of events upon which movement of the process is contingent. For example, if one subcontractor is unavailable to prepare an invoice or submit a lien waiver, the invoice process for all the other subcontractors can be delayed.

The conventional construction invoice process also involves enormous amounts of data entry. For example, for a single large construction project, a GC often must enter hundreds of invoices into its accounting system each month. Also, a GC must gather hundreds of lien waivers each month. In addition, a GC must prepare, approve, sign, and distribute hundreds of checks to subcontractors each month. Further, a GC must store all the paper documents collected during each draw process. The timing of the draw notifications, the approvals, and the exchanges of lien waivers for invoice requires hundreds of faxes, phone calls, and meetings each month.
Object of the Invention
The object of the present invention is to provide system and method for provide construction invoice process
Summary of the Invention
Embodiments of the invention provide a system and method for managing a construction invoice process. One method embodying the invention can include generating a budget for a construction project, receiving an invoice amount from at least one participant in the construction project, generating at least one of an automated invoice and an automated sworn statement based on the invoice amount and the budget, generating at least one automated lien waiver based on at least one of the automated invoice and the automated sworn statement, and electronically executing at least one of the automated invoice, the automated sworn statement, and the at least one automated lien waiver to create at least one of a legally-binding invoice, a legally-binding sworn statement, and a legally-binding lien waiver.
One construction invoice management system embodying the invention can include an electronic signature service and an application server that stores a budget module and a draw module. The budget module generates a budget for a construction project. The draw module receives an invoice amount from a participant of the construction project, generates at least one of an automated invoice and an automated sworn statement based on the invoice amount and the budget, and generates at least one automated lien waiver based on at least one of the automated invoice and the automated sworn statement. The electronic signature service electronically executes at least one of the automated invoices, the automated sworn statement, and the at least one automated lien waiver to create at least one of legally binding invoices, legally-binding sworn statement, and legally binding lien waiver.
Additional embodiments of the invention provide a method of managing a construction invoice process. The method includes electronically receiving a lien waiver from a participant in a construction project, electronically transmitting invoice to the participant in response to receipt of the lien waiver and releasing the lien waiver in response to the invoice.
Further embodiments provide a construction invoice management system including an application server that stores an electronic holding bin and a draw module. The electronic holding bin receives a lien waiver from a participant in a construction project and the draw module transmits invoice to the participant in response to receipt of the lien waiver and releases the lien waiver in response to the invoice.
Brief Description of Drawings
FIG. 1 is a schematic illustration of construction invoice management processes
FIG. 2 is a schematic illustration of a manage project process.
FIG. 3 is a schematic illustration of a manage organization process.
Detailed Description of Invention
Before any embodiments of the invention are explained in detail, it is to be understood that the invention is not limited in its application to the details of construction and the arrangement of components set forth in the following description or illustrated in the following drawings. The invention is capable of other embodiments and of being practiced or of being carried out in various ways. Also, it is to be understood that the phraseology and terminology used herein is for the purpose of description and should not be regarded as limited. The use of “including,” “comprising” or “having” and variations thereof herein is meant to encompass the items listed thereafter and equivalents thereof as well as additional items. The terms “mounted,” “connected” and “coupled” are used broadly and encompass both direct and indirect mounting, connecting and coupling. Further, “connected” and “coupled” are not restricted to physical or mechanical connections or couplings, and can include electrical connections or couplings, whether direct or indirect. Also, electronic communications and notifications may be performed using any known means including direct connections, wireless connections, etc.
It should be noted that a plurality of hardware and software-based devices, as well as a plurality of different structural components may be utilized to implement the invention. Furthermore, and as described in subsequent paragraphs, the specific configurations illustrated in the drawings are intended to exemplify embodiments of the invention and that other alternative configurations are possible.
FIG. 1 illustrates a manage project process (which can be performed by the project module and/or the budget module), a manage draw process (which can be performed by the draw module), a manage change order process (which can be performed by the manage change order module), a manage organization process (which can be performed by the organization module and/or the user module), and a manage system environment process (which can be performed by the access manager, the notifications manager , and/or the system environment manager).
FIG.2 illustrates the manage project process, which can include a create project task, a maintain project task, and a create budget task. FIG. 3 illustrates the manage organization process, which can include a create organization task, a maintain organization task, a create user task, and a maintain user task.