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Constrafor - 2022 Year in Review & Look Ahead

Constrafor - 2022 Year in Review & Look Ahead

As we wave goodbye to 2022, the Constrafor team wanted to reflect on exciting milestones as well as share a sneak peak of what’s coming in 2023.  

Our mission has been to enable contractors with modern software solutions designed to reduce risk, improve back-office workflows, and maximize project cash flows. By the end of 2022, Constrafor emerged as a true goliath in the construction industry.  

  • 20k+ contractors have joined the Constrafor platform with 5k+ projects being supported. 
  • Constrafor’s Early Pay Program has accelerated $50M+ in Trade Contractor payments. 
  • Constrafor increased its workforce by 4x, filling crucial roles in Product, Engineering, Credit, and Marketing.

From Startup to Enterprise

In a high stakes industry like construction, risk mitigation is the backbone of any successful enterprise. While adopting new technologies can often reduce exposure to risk, Contractors cannot afford to ride the cutting edge of technology if that means being exposed to startup risks. 

Like contractors, risk mitigation is at the heart of our business as we’re responsible for sensitive legal and compliance information through our contracts and insurance module. We strive to build software that not only accelerates workflows, but also adds an enterprise-class layer of security for our partners. At Constrafor, we believe that improving back-office workflows isn’t just about going faster, but reducing risk with modern solutions.

In 2022, we successfully onboarded some of the largest construction enterprises alongside countless product enhancements to support builders operating at the highest level. With our best-in-class customer support, we learned the importance of flexibility and challenged ourselves to develop a versatile and customizable solution for our customers. Our customers were able to navigate last year’s unique workforce challenges and operational inefficiencies using our revolutionary software solution.

Constrafor Raised $100M to Accelerate EPP

In order to support our Early Pay Program, we launched our $100M credit facility, enabling Trade Contractors to take control of their cash flow and reduce project risk, while maintaining transparency and control for General Contractors. 

epp-chart

 

Constrafor experienced 11x growth of our EPP in 2022, accelerating nearly $60M in contractor invoices. We’ve also improved the EPP request process with platform enhancements and ERP integrations.

 

A Long List of Platform Enhancements

Last year we extensively expanded our document management and text parsing technology to include the robust features required by the largest construction enterprises. 

General Platform Enhancements

In order to enable more efficiencies and eliminate data silos, we released new Sage and Viewpoint integrations, as well as enhancements to our QuickBooks and Procore integrations. We added detailed user permissioning, customizable reporting and workflows, notification controls, and multi-company login functionality.

COI Enhancements

Since our founding, we’ve aimed to save GCs time and money while reducing risk in their back office. Last year, we differentiated ourselves with the release of blanket COI application and labeling, a feature only available with Constrafor. COI dashboards, new integrated workflows with contract execution, and updates to automated reminders.

Contract Enhancements

Last year we made significant improvements to our contracts module, allowing for a more collaborative and streamlined process for contract creation, negotiation, and execution. We also added new pre-cursor documents to facilitate early stages of contract workflows, including contract award sheets.

Additional enhancements include added access to contract log details, subcontractor acknowledgement tracking, enhanced redlining capabilities to facilitate negotiations, and workflow enhancements.

New Release: Lien Waiver Escrow

Near the end of 2022, we released a new and exciting product – Lien Waiver Escrow. With Lien Waiver Escrow, GCs can automate lien waiver requests for each invoice submitted, and hold GC payment until the waivers are shared and approved.

What’s in Store for 2023

While 2022 saw Constrafor grow and develop at a rapid pace, we plan to continue our mission to provide best-in-class software for contractors with several new enhancements and features. Based on countless meetings, phone calls, emails, and customer feedback sessions, we are confident that what’s in store for 2023 will help all of our construction partners further improve their operations with Constrafor.

Here’s a list of what’s to come in the new year:

  1. Invoice Module Upgrades – we will release more subcontractor compliance items while leveraging the power of our network approach to speed up invoice approvals and A/P compliance (e.g. tier-2 lien waivers, certified payroll, verification of good standing with the unions, and payment verification to material suppliers)
  2. Payments Module Upgrades – We will release our eCheck capabilities alongside our ACH rails to meet the current needs of contractors and help reduce the drawbacks of collecting and managing physical checks.
  3. Prequal Module (New) – We will release our new Prequal module to General Contractors. Purpose-built for GCs and based on the same technology we use to power our own Early Pay Program, Contractors will now be able to take advantage of our in-depth credit analysis with customizable Prequal forms and workflows.
  4. Early Pay Program (Expansion) – The demand for our Early Pay Program has exceeded our expectations and we’re excited to go back out to market to raise additional funds so we can support more contractors
  5. Insurance Carrier Alignment – We are excited to work more closely with insurance carriers now that we have a national-level scale. Our vision to help lower the costs of SDI combined with our comprehensive risk management framework can meaningfully accelerate the adoption of this important product at a critical time in the industry.

 

Our Thanks

At Constrafor we know that a business is only an idea without the support of investors, partners, customers, and the people that make up the team. We are deeply grateful for every ounce of support – your confidence in our mission fuels us on our journey forward.

  • To our investors: We know this is a chaotic market and we appreciate your steadfast support and unyielding trust in Constrafor.
  • To our partners: We are grateful for your continued collaboration – we’re on a mission to build an end-to-end procurement platform and we wouldn’t be able to do so without you.
  • To our customers (special shoutout to Suffolk Construction): Without your support and trust in our services, Constrafor would not be here. We are grateful for your business and look forward to building solutions to meet your needs for years to come.
  • To the Constrafor Team: Finally, to the Constrafor team – Thank you! The energy and drive that you bring every day has fueled our growth in 2022 and expanded our reach beyond my wildest expectations. And to the folks that will join our journey in 2023, we can’t wait to welcome you onboard!
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