Real Estate Process Reimagined

Synopsis

• Our client’s construction draw process was complex and reliant on manual efforts, leading to inefficiencies and high error rates.
• Key challenges included tracking funds, auditing payments, and inadequate process documentation.
• Conducted a Goal Mining and Team Alignment Workshop.
• Created detailed Process Maps and Documentation.
• Designed a future state 'Process-to-be' Map.
• Identified Opportunities for enhancement.
• Developed five effective Robotic Process Automation (RPA) solutions.
• Streamlined the client’s construction draw process, improving team productivity and cash flow operations, and empowering executives to focus on higher ROI tasks.

Article

For commercial real estate corporations, the Construction Draw process plays a pivotal role in the successful execution of construction and renovation projects. Construction Draws are a crucial mechanism for managing cash flow as they enable the periodic disbursement of funds to cover the costs incurred in the various stages of the project. The disbursements are closely tied with project milestones, helping ensure efficient cash flow management and timely compensation for contractors. The proper administration of construction draws is an indispensable component for commercial real estate operations as they ensure the efficient and transparent deployment of financial resources, enabling the close monitoring of project expenditures and identification of budget deviations, ultimately contributing to the successful delivery of high-quality real estate developments.

Our client, who is a highly successful commercial real estate company, came to us because they knew that their Construction Draw process needed to be better understood so that it could be enhanced and innovated. When they knocked at BP3’s door, they already had an understanding that their labor-intensive process presented variabilities that led to inefficiencies and costly error rates. They aimed to streamline and modernize this process to boost team productivity and reduce costly error rates. Their main key challenges included tracking funds, auditing payments, and inadequate process documentation.

BP3's comprehensive approach involved:

• Facilitating a Goal Mining and Team Alignment workshop.
• Creating detailed Process Maps and documentation.
• Designing a future state 'Process-to-be' map.
• Identifying opportunities for process enhancement and innovation.

• Daily Open AR Report
• AP Invoicing
• Construction Open AP
• Construction Lien Waivers
• Collections

We initiated with a goal mining workshop to thoroughly understand the client's specific challenges and pain points, aiding them in setting targeted goals to tackle these issues. This was followed by a detailed mapping of the existing process, key to comprehending its intricacies and complexities. Next, we mapped a 'process-to-be', identifying potential areas for enhancement and automation. We meticulously outlined these opportunities, including a strategic roadmap, in a presentation used to showcase our findings. Based on this, the client selected the most relevant opportunities, prompting us to commence the development of tailored RPA solutions to realize these opportunities.

This strategic intervention led to:

• Faster processing of construction draws; improving team productivity, process overview and understanding, and cash flow operations.
• Empowerment of executives to focus on higher ROI tasks.
• Client satisfaction with the detailed process map, documentation, and the effective construction lien waivers bot.
  
  

BP3's approach not only streamlined a critical business process but also provided a roadmap for continuous improvement, showcasing our commitment to delivering transformative solutions.