Managing construction disbursements is a critical task for anyone involved in the construction industry, from developers to contractors and subcontractors. One of the most important aspects of managing construction disbursements is to ensure that you are only paying for completed work that is in line with the project’s scope and budget.

Fund Control was carefully crafted by experts in the field to make managing construction disbursements as easy as possible. Call 800-625-5972 to speak with a professional or request to try a free demo to experience it for yourself.

Continue reading to explore some tips for managing construction disbursements effectively.

1. Understand the project scope and budget

One of the most crucial elements of managing construction disbursements is understanding the project scope and budget. Keep in mind that scope changes and unexpected expenses can impact the budget, so it’s crucial to have a clear picture of both to determine appropriate disbursements.

2. Review the work completed

Before releasing funds, it’s essential to review the completed work carefully. With project management software like Fund Control, you can track the progress of the project and all associated costs. This software can help streamline the review process by making it easier to identify and monitor any changes to the scope of the project.

3. Verify and approve invoices

Payment is initiated through the submission of an invoice. Ensure that you accurately verify your invoices for each completed task with an accurate request submitted through a suitable avenue. This means auditing all submitted invoices to ensure they are accurate, valid, and fully detailed. It’s essential to keep a record of communication and agreements throughout the invoice process, creating a paper trail of all agreements, payments, and invoices.

4. Set clear disbursement schedules

Set a clear schedule that will serve as a guideline throughout the disbursement process. This schedule can detail the specific work completed, including details such as timelines, milestones, materials used, and checks and balances for meeting critical deadlines.

5. Prepare for contingencies

Construction projects often come with unforeseen contingencies. Be ready to handle these contingencies by setting up your disbursement schedules with flexible timelines, focused payments, and a project contingency fund to accommodate any surprises.

6. Utilize construction management software

Using construction management software like Fund Control can streamline the disbursement process and provide transparency and accountability. The software can optimize document management, accounting, and reporting, including communication between different teams and anyone involved in the financing arrangements.

Try Fund Control’s Award-Winning Construction Disbursement Software

The above tips are essential for managing construction disbursements effectively. Tracking project budgets, reviewing completed work, verifying invoices and receipts, and preparing for contingencies are all crucial elements of effective construction disbursement management.

By utilizing construction management software like Fund Control, you can streamline the disbursement process, allowing you to handle finances efficiently, and deliver quality projects timely and without errors.