Large national general contractor adopts construction supply chain finance solution to improve cash flow, working capital management for subcontractors
CHICAGO, March 9, 2016 /PRNewswire/ -- Textura Corporation (NYSE: TXTR), a leading provider of collaboration solutions for the construction industry, announced that national general contractor Alston Construction is using the Textura Early Payment Program™ (EPP™) solution to expedite payment to its subcontractors.
"The construction industry's long and unpredictable payment waiting periods can be a real challenge for subcontractors," said Adam Nickerson, Chief Financial Officer at Alston Construction. "We see in EPP an opportunity to address this longstanding issue and help our subcontractors to prosper and grow their businesses," he said.
EPP is an innovative alliance between Textura and financial services company Greensill Capital. Designed to optimize working capital management at construction companies, EPP enables general contractors to use third-party funding to offer optional early payment across their subcontractor community. This approach reduces subcontractors' typical payment waiting time from weeks or even months to just days after invoice approval. By improving cash flow and making payment timing predictable, EPP provides an affordable option for subcontractors that can reduce their need for traditional financing, diminish financial stress and help subcontractors better manage their working capital.
Alston Construction in 2014 implemented Textura-Construction Payment Management™ (CPM®) across its operations. With offices across the country, the general contractor has completed work in nearly all 50 states with a focus on the industrial, health care, religious and retail markets. The Sacramento, Calif.-based company ranks No. 134 on Engineering News-Record's 2015 ENR 400 list of the largest general contractors, and No. 47 top design-build contractor in the nation. Revenue in 2014 jumped 26% to $470 million, according to ENR's lists.
The EPP solution, which enables supply chain finance (SCF) programs in construction, works by leveraging the financial strength of the general contractor's balance sheet and using Textura's CPM technology to facilitate early payment to subcontractors through Greensill Capital. Greensill Capital is an independent financial services firm and principal investor group specializing in structured trade finance, working capital optimization, specialty financing and contract monetization.
Alston's subcontractors have been very receptive to the program, Nickerson said, with one project seeing 100% enrollment in EPP. Participating subcontractors report several benefits, including faster access to funds, improved ability to take advantage of supplier discounts, and increased ease of forecasting and managing working capital.
"The Early Payment Program brings much needed consistency into the payment process. We're getting paid much faster with EPP, and knowing the date of payment really helps us manage our cash flow," said Matt Wilcher of Ada, Okla.-based National Coating Restorations, a company specializing in commercial painting and coating.
"Not holding up cash flow is huge in this business…EPP is a win-win for everybody," said Cindy Pitts, co-owner of Reno, Nev.-based excavation contractor F & P Construction. She noted F & P has been able to receive payment 45 to 60 days sooner when participating in EPP compared with non-EPP projects generally.
"EPP is uniquely positioned to address the construction industry's longstanding payment and working capital challenges," said Dave Habiger, interim Chief Executive Officer of Textura. "We are pleased to be able to help Alston offer its subcontractors accelerated payment, leading to a stronger supply chain and better project outcomes for all stakeholders," he said.
About Alston Construction
Alston Construction Company offers a diverse background of general contracting, construction management and design-build experience of industrial, commercial, healthcare, education, retail and government projects. In its 30 year history, Alston has achieved substantial revenue growth. Our client list is perhaps the greatest tribute to the professionalism and performance of the company. We are proud to perform work for owners with whom we have developed lasting relationships, deriving roughly 85% of our work from repeat clients. A privately-held company, Alston has worked on projects ranging from $250,000 to $100 million. Our market knowledge throughout the country allows us to provide our clients with the best building methods and materials available, at a competitive price. Alston's overall goal is to provide quality, cost efficient projects that leave a positive experience for our clients. Alston has offices located in Atlanta, GA; Chicago, IL; Dallas, TX; Edison, NJ; Houston, TX; Las Vegas, NV; Nashville, TN; Newport Beach, CA; Reno, NV; Sacramento, CA and Seattle, WA. www.alstonco.com
Textura is a leading provider of collaboration and productivity tools for the construction industry. Our solutions serve all construction industry professionals across the project lifecycle – from takeoff, estimating, design, pre-qualification and bid management to submittals, field management, performance management, LEED management and payment. With award-winning technology, world-class customer support and consistent growth, Textura is leading the construction industry's technology transformation. www.texturacorp.com
About Greensill Capital
Greensill Capital is an independent financial services firm and principal investor group specializing in structured trade finance, working capital optimization, specialty financing and contract monetization. The firm was founded in 2011 by a seasoned team of trade finance specialists with the goal of providing innovative and alternative structured solutions for corporations and financial institutions globally. In 2014, Greensill Capital acquired a majority shareholding in Greensill Bank AG, a regulated German private bank. www.greensill.com
Textura contact: Emily Ries, Textura Marketing firstname.lastname@example.org 847-457-6536
Greensill contact: email@example.com
Textura investor contact: Annie Leschin, StreetSmart IR 415-775-1788 firstname.lastname@example.org
SOURCE Textura Corporation