A.M. Ortega Construction is a premier underground utility construction, grading, and paving contractor. With over 300 field employees and 50 accounting specialists, estimators, designers, project managers, administrative professionals, and senior management roles, the company successfully manages a large volume of both public and private projects.
In this brief customer spotlight, we’ll show you how they were able to increase job profits by $3 to $4 million per year by implementing Sage Paperless Construction.
Accounts payable had been an entirely manual process for the company, from routing paper invoices for approval through filing in a cabinet with a copy of the check attached.
“We process approximately 4,000 accounts payable invoices per month that required a tremendous amount of time and labor to move, track, and store all that paper,” says Bruce Evenrud, CFO at A.M. Ortega Construction.
The company decided to automate their A/P invoice process using Sage Paperless Construction – a document management and workflow automation solution that integrated with the company’s existing Sage Construction and Real Estate software. Today, payable invoices are electronically routed while printed checks are scanned and associated with the digital invoice. There’s no more paper, photocopies, staples, or filing required.
Increasing Monthly Cash Flow
The company performs a large number of time and material jobs for its utility customers and issues an average of 4,000 invoices each month. Previously, they had five full-time employees doing manual billing and the entire process took anywhere from three to ten days for the expense invoice to land in the billing department. Now, all job expense invoices and associated documents are automatically routed to the billing person assigned to that job for approval, eliminating the possibility that a project expense goes unbilled as well as speeding up the billing cycle.
“Using Sage Paperless Construction, we’ve reduced our billing cycle from 15 to 20 days down to two days,” says Evenrud. “This single process change increased our cash flow by over $4 million per month.”
Job Profits Up Too
Before Sage Paperless Construction, there was no formal process for routing the company’s daily field billing reports for invoicing. After payroll was complete for the week, the 350-400 reports were given to the billing department unsorted and out of order. Sorting the reports and completing the billing then took 15 to 20 days.
“We now use Sage Paperless Construction document routing program for our daily reports,” says Evenrud. “We added a custom field on our job for the name of the billing person assigned to the job. ,We then created an automated document routing process that back-filled that field once the job number field was entered. The daily report is then automatically routed to the billing person to start the billing process.”
These seemingly simple changes have led to measurable results. “Our Time and Material jobs profits have increased about three to four million per year due the process changes made possible with Sage Paperless Construction.” says Evenrud.
Growing Faster With Less Overhead
Evenrud concludes, “My advice to other contractors is simple—if you are resistant to embrace this technology, you will lose ground to your competitors that are embracing the efficiencies that allow them to be more thorough and grow faster with less overhead.”
Sage Paperless Construction
Click below to learn more about how Sage Paperless Construction works hand in hand with your Sage 100 Contractor or Sage 300 Construction software to help you save time, cut operational costs, and streamline workflow.