CHICAGO (Feb. 2, 2016) Textura Corporation (NYSE: TXTR), a leading provider of collaboration solutions for the construction industry, announced that KAST Construction is using the Textura Early Payment Program™ (EPP™) to accelerate payments to its subcontractors.
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.
“By accelerating payments and providing certainty around payment timing, EPP can make it much easier for our subcontractors to manage their finances,” said Roger Whitman, CFO at KAST Construction. “We’re helping our project partners to grow stronger, which also strengthens our subcontractor relationships and reduces the risk that a subcontractor will face financial issues that impact a project. It’s really a win-win for everybody,” he said.
Based in West Palm Beach, Fla., KAST Construction ranks No. 295 on Engineering News-Record’s 2015 “ENR 400” list of the largest general contractors, based on 2014 revenues of $203.6 million.
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.
“Stronger construction supply chains lead to better project outcomes for all,” said Mike Antis, Executive Vice President of Client Services at Textura. “The Early Payment Program is the first of its kind in construction and was designed specifically to address the industry’s unique payment and working capital challenges. We are excited to support KAST Construction in helping its subcontractors by addressing a longstanding industry challenge.”
KAST Construction was designed and built by top executives from the nation's largest and most prestigious construction firms. These individuals share a passion for unparalleled customer service, professionalism and attention to detail that often gets lost in the large company format. They believed that it is possible to offer the best construction services on a platform that empowers employees to address the customer's needs without being encumbered by multiple layers of approvals that exist in a large organizational culture. KAST rejects the notion that "bigger is better." For more information, please visit www.kastbuild.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
Annie Leschin, StreetSmart IR
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