Overview
IPP enables subcontractors to receive payments quickly without the burden of taking on additional debt. IPP eliminates the risk of unanticipated delays in disbursement, creating peace of mind for trade partners to meet their financial commitments.
This expedited payment system provides more predictable income streams for Subcontractors, especially Underutilized Business Enterprises (UBEs), allowing them to manage the predictability of their finances better and improve operations in other areas of their business.
Benefits
Motivated Labor Force
Rapid cash conversion motivates Subcontactors to direct their resources to work on Owner’s projects
Payment Certainty
Trade Partners are more financially stable due to improved cash flow, translating to reduced project execution risk.
Market Pricing
Lower operating costs and project risks ultimately reduce Subcontractors operating expenses and may yield lower trade pricing.
Increased Competition
Project APP participation attracts more Subcontractors during bidding, potentially leading to lower prices for the Owner.
Unsurpassed UBE Participation
Underutilized Business Enterprises (UBEs) will find APP particularly appealing due to lower cost of financing, allowing the Owner to potentially exceed participation/inclusion targets.
Focused Labor Force
Trade Partners will remain focused on the work at hand, as opposed to worrying about shifting disbursement schedules, payment timing and cash flow
How it Works: Prequalified companies are eligible to voluntarily participate, and can expect the following 3-steps:
- Trade partner enrolls in IPP via our online payment application platform on any given project.
- Pioneer Services reviews monthly payment applications and submits them for client approval.
- After client approval, Pioneer Services authorizes the release for immediate payment generally within 5 business days.
