Adding a new solution to your flow at work can take some getting used to. Contract Simply is here to help make sure you are equipped to best use our construction loan software.
Below are some definitions of commonly used industry terms that are also used in our platform, as well as the types of users (roles) on our platform and the workflows they will encounter.
Construction Loan Participants
Bank or Credit Union: refers to the institution lending the money for the construction loan.
Borrower: the person or organization that is receiving the loan from the bank or credit union in order to fund the construction
Contractor (General Contractor): manages the day-to-day aspects of actually completing construction, creates Scopes of Work, packages draws to send to the bank, releases funds to subcontractors.
Inspector: a person who verifies that the work the contractor says has been completed has actually been completed. This person sends the inspection documents to the bank and verifies that the work in a specific draw is actually complete.
Subcontractor: the entity or person performing work on project, hired by the general contractor.
Conditional Lien Waiver and Release: signed by the subcontractor or general contractor as an invoice is submitted; the claimant has not yet been paid, but will be paid out of a progress payment that is not the final payment.
Unconditional Lien Waiver and Release: signed by the subcontractor or general contractor as a payment is claimed; states they have received payment and waive their lien right to the borrower’s property.
Draw: collection of invoices submitted by the general contractor to the bank for approval and funding.
Fund: when a draw is approved by a bank, they are then able to fund it, at which time the general contractor has the ability to release these funds to subcontractors. (It’s important to note that the general contractors never have access to the money owed to subcontractors. Rather, they are enabled to release the funds at the click of a button.)
Invoice: submitted by subcontractors and general contractors, this documents what work has been done and the amount owed for that work.
Scope of Work: (aka estimate, budget, schedule of values, contract) a list of project costs that all parties involved have agreed to as the original contract sum. This can be submitted by the general contractor to be reviewed (then accepted/rejected) or uploaded directly by the bank if the scope of work has been agreed to prior to the project creation within Contract Simply.
Platform User Types / Roles
Admin: top level user access role that can add/remove other users, add/remove bank accounts, manage billing and so on.
User: this type of user can do most things, except manage other users and bank accounts. They can still create invoices, change orders and sign lien releases.
Read-Only: a user access role that is limited only to viewing things. This access type can't make any changes on the system, but they can still review things.
If you have any questions, please email us at email@example.com or give us a call at 1-833-4SIMPLY.