Lincoln Easton, CFO of a Melbourne, Australia-based contractor, was apparently only too familiar with the poor book-keeping, arguments, paperwork and threats that resulted from slow payment due to poor progress claim documentation – often based on manual processes. A 2009 industry report suggested contract disputes added an average 6 per cent to the cost of each project. So, in 2011, Easton established Progressclaim.com, a software provider whose product connects the systems of contractors and subcontractors – replacing spreadsheets and email – so that they can generate, process and track cost claims arising during projects, and ensure they are are correctly formatted and compliant with the relevant legislation.
The first prototype software was tested on commercial projects in 2012-13; customers have included Built, Decmil and Victorian builders Buildcorp Commercial and Winslow Group; and the now 11-strong business claims annual revenues of about Au$1m (“Easton says it could potentially reach $30 million in four years’ time”). The BRW article also positions Progressclaim as potentially competing with near Melbourne neighbour Aconex (who announced they were acquiring Worksite in August 2015 – I don’t think BRW is correct: Worksite is a broader offering than just construction payment management, CPM) as well as offering a locally-developed alternative to the major niche player, Textura.
Founded in the US in 2004 to expedite CPM processes, Textura is now well-established in the north American market and has been gradually expanding overseas, opening an office in Australia in 2012 and – since July 2014 – beginning to expand in Europe (post). Other niche players in this sector include UK-based OpenECX (post).
[Disclosure: I have undertaken consultancy work for Textura Europe.]