Construction

Stop progress-claim leakage before the payment run

Automate claims intake and validation while keeping Security of Payment checks, variation controls, and real-time governance in place before payment runs.

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Outcomes

How RedOwl Helps

Use Cases

FAQ

Outcomes

1
Stop progress-claim overbilling, variation errors, and retention mistakes before they leave your account, not after month-end reconciliation
2
Never miss a Security of Payment deadline: track payment schedule windows from claim receipt and surface at-risk claims before statutory exposure hits
3
Automate claims intake, extraction, and routine validation so commercial and finance teams focus on exceptions, variations, and high-risk claims, not every PDF in the inbox
4
Strengthen subcontractor payment controls in PO-light environments without slowing compliant pay cycles or damaging trade relationships
5
Stop progress-claim overbilling, variation errors, and retention mistakes before they leave your account, not after month-end reconciliation

The Problem

Industry realities that create leakage, backlog, and control gaps.
Progress claims arrive via email, portals, and PDFs; teams waste time sorting, renaming, and chasing context
Teams either manual-process every claim (slow) or speed approvals (risky) with no way to automate routine work while keeping controls
Under Security of Payment legislation, head contractors must issue payment schedules within fixed timeframes or face adjudication risk
Missed or late payment schedule responses create legal exposure, strained subcontractor relationships, and pay-less notice pressure
Variations and retention are complex; errors slip through busy approval chains while the statutory clock keeps running
PO-less environments remove three-way match; manual judgement becomes the main control
Bank detail change fraud (BEC) is a persistent risk in subcontractor-heavy ecosystems
Operational approvers often miscode costs, creating rework and reporting inaccuracy

How RedOwl Helps

Validate, verify, and govern: automate routine work while keeping real-time control on exceptions.
Validate
Verify
Govern
Automated extraction and field normalisation from email, PDF, and portal claims
Progress claims against contract, schedule of values, and billing period terms
Variations and retention rules before payment release
Contract and rate checks where POs exist but contracted rates do not
Agent checks on duplicates, contract terms, rate drift, and missing documentation pre-approval
Duplicates and billing-period overlaps across claims
Bank-detail changes and payee anomalies with verification workflows
Claims missing documentation needed to support a payment schedule or pay-less notice
Prioritised exception dashboard with Security of Payment deadlines, dollar exposure, ageing, and assigned owners
Governance scores so project and finance teams focus on highest-risk claims and statutory windows
Configurable approval thresholds by project, value, and cost code as contracts evolve
Audit trail for payment schedules, pay-less notices, and approver actions: who approved what, when, with what evidence

Key Use Cases

Click any use case to see when it applies, what it prevents, and who benefits.
Security of Payment Deadline Control
a subcontractor progress claim is received and the payment schedule response window starts
Missing a statutory payment schedule deadline isn't just an administrative failure, it hands the claimant the right to suspend work and pursue adjudication immediately.
‍
82% of contractors face payment waits over 30 days, up from 49% just two years prior.
Source: Rabbet, 2024 Construction Payments Report
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When it applies
When a subcontractor progress claim is received and the statutory payment schedule response window begins.
What it prevents
Missed deadlines, late payment schedules, and adjudication exposure from overdue responses.
Who benefits
Finance, commercial, and legal teams responsible for Security of Payment compliance.
Progress Claim Validation
subcontractor progress claims enter intake or approval
Overbilling in construction is not unique case, it is the norm.

64% of construction projects experience overbilling, with 47% of respondents occasionally facing it and 17% experiencing it frequently.
Source: Payapps, Building the Future Report, 2024
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When it applies
Subcontractor progress claims enter intake, triage, or approval against contract and schedule of values.
What it prevents
Overbilling, billing-period errors, and claims that cannot be tied to contracted terms.
Who benefits
AP, project finance, and commercial teams processing high claim volumes.
Variation Governance
claimed amounts include variations or scope changes
Variation disputes are among the most costly and time consuming in the industry.

The average value of construction disputes in Australia surged to AU$33 million, up 22% in just two years. The average time to resolve disputes has grown to 15 months.
Source: Accura Consulting
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When it applies
Progress claims include variations, scope changes, or amounts not covered by the base contract.
What it prevents
Unapproved variations, undocumented scope changes, and payment before variation sign-off.
Who benefits
AP, project finance, and commercial teams Commercial managers, project directors, and finance approvers.processing high claim volumes.
Retention Accuracy
retention is calculated or released on supplier payments
Retention misuse is systemic enough that two Australian states have introduced statutory trust frameworks to address it

Before retention trust schemes were introduced, retention money was often used as working capital, making it especially vulnerable to being misappropriated or lost altogether during financial disputes or insolvency. Queensland and Western Australia have both introduced statutory retention trust frameworks to address this systemic risk.
Procore
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When it applies
Retention is calculated, held, or released on subcontractor and supplier payments.
What it prevents
Incorrect retention amounts, premature release, and reconciliation gaps at project close.
Who benefits
Project accountants, finance controllers, and commercial teams.
Subcontractor Bank Detail Verification
supplier bank or payee details change before payment
Construction's high-value transactions and complex subcontracting chains make it a prime target for payment redirection fraud.

Australians lost more than $152.6 million to BEC scams in 2024, a 66% increase from the previous year. The construction sector is specifically flagged as a high-risk target due to its high-value transactions and complex subcontracting chains.
The Good Builder
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When it applies
Supplier bank accounts, payee names, or payment instructions change before a payment run.
What it prevents
BEC-style fraud, payments to incorrect accounts, and unverified payee changes.
Who benefits
AP teams, treasury, and project finance responsible for payment release.
Automated Intake with Governed Exceptions
claims arrive across email, PDF, portal, or Procore and need triage before review
When claims arrive through multiple channels at once, manual triage creates backlogs before validation even begins.

Nearly 39% of invoices contain errors and the average time to process an invoice manually is 14.6 days. In construction, where claims arrive across email and PDF simultaneously, manual triage compounds these delays significantly.
Source: DocuClipper, 59 Accounts Payable Statistics for 2026
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When it applies
AP teams, treasury, and project finance responsible for payment release.
What it prevents
Shared-inbox backlog, lost claims, and manual sorting before validation can begin.
Who benefits
Project accountants, finance controllers, and commercial teams.

How RedOwl Works

Every customer starts in a different place. The pattern below is consistent; data sources, sequencing, and rollout scope are shaped around your environment.
Discover and connect
We start with your stack, payment streams, and where control gaps show up today. Connection can be lightweight (exports or files) or integrated, depending on what you already run and how fast you need signal.
Validate what matters
You configure agents and policy rules around the checks that matter for your environment. RedOwl validates against contracts, master data, and thresholds before payment is approved, so scope follows your priorities rather than a fixed template.
Govern and scale
Exceptions route to the right people with evidence and governance scores. As confidence grows, you expand coverage, tighten rules, and deepen integrations at a pace that fits your team.

Industry Snapshot

Headline benchmarks on payment delays, cash flow pressure, and subcontractor wait times across construction.
Payment delays
82%
Of contractors face payment waits over 30 days, up sharply from 49% just two years prior.
Rabbet, 2024 Construction Payments Report
Cost of slow pay
$280B
Tied directly to slow payments across the U.S. construction industry in 2024.
Rabbet, 2024 Construction Payments Report
Average wait time
56 days
Average subcontractor wait after submitting a pay application — despite GCs believing it takes 30.
Billd, 2025 National Subcontractor Market Report

FAQ

Do we need POs for this to work?

No. RedOwl can enforce policies and verification even in non-PO environments.

Can you validate progress claims and variations?

Yes, using contract terms and structured checks where data is available.

How do you help with Security of Payment deadlines?

RedOwl tracks payment schedule response windows from claim receipt, flags overdue and at-risk claims, and surfaces the evidence finance, commercial, and legal need to issue a schedule or pay-less notice on time.

How do you help with bank detail change fraud?

By flagging anomalies and enforcing verification workflows before payment release.

Can we start without deep ERP integration?

Yes. Begin with lightweight data handoffs and expand later.

Does automation mean we lose control over claims?

No. RedOwl automates intake, extraction, and routine validation. Exceptions, Security of Payment deadlines, variations, and high-risk claims still route to the right people with evidence, governance scores, and an audit trail.

Discover how RedOwl can supercharge your finance operations

Book a personalized demo of RedOwl's agentic platform, that transforms your finance operations

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Any financial product advice that is provided in this material is general advice only and does not consider your objectives, financial situation or needs. You should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs before acting on it.
Financial services are provided by Nium Pty Limited ACN 601 384 025 (AFS licence 464627). Red Owl Pty Ltd ACN 676 456 321 is an authorized representative of Nium Pty Limited (AFS Authorized Representative 1313293). Before you make any decision, you should consider the Product Disclosure Statement, Financial Services Guide and Target Market Determination.