Built Technologies – Transform the Construction Finance Industry

Built Technologies is a Nashville-based construction finance technology provider that connects lenders, commercial real estate developers, commercial general contractors, residential homebuilders, specialty contractors, title companies, and key industry vendors to reduce risk, speed payments, and ensure compliance while creating customer loyalty.

Project Management

Construction industry innovation continues, with new materials, technologies, methods, and community needs constantly emerging. To meet these challenges responsibly and efficiently, project management skills are indispensable – project managers are vital for orchestrating complex processes involving all parties involved in producing successful outcomes on time and within budget.

Construction industry projects involve an abundance of information to be kept track of transmittals, submittals, RFIs, change orders, materials invoices, job costs, WIP reports, labor hours, wages union rules, safety regulations, insurance bonding compliance data, etc. For successful project management, an effective communication and control system must be implemented to prevent critical data from being mishandled or forgotten.

Built Technologies’ construction loan management solution provides lenders, developers, and general contractors with a one-stop solution for construction loan management needs. When our debriefing session was taking place, built technologies was approaching 400 employees with an expected construction sales headcount in the hundreds.

Built was designed as a point solution that will integrate seamlessly with other software in a contractor’s tech stack, and to that end is working towards including financial services like insurance and lending into its platform. This would enable it to monetize its existing functionality while meeting customer demand for integrated processes.

Built is currently offering contractors an online platform that stores certificates of insurance (COI). They plan to expand this feature to store additional compliance documents like W9s, proof of licensure documents, and lien waivers – similar to how companies like Flashtract and Constrafor offer construction business software that integrates finance, lending, and more into its offering.

Lenders lack tools designed specifically for construction financing that offer actionable insights, hindering their ability to assess and mitigate risks across their CRE construction portfolio. Built’s latest solution Project Pro addresses this problem by providing complete visibility over crucial information and giving lenders an effective platform to manage risk proactively.

Communication

Poor communication is often at the root of construction project issues. Misunderstanding between project stakeholders can result in delays to project completion, yet effective communication plays a pivotal role in project management processes and can reduce risks such as cost overruns and schedule overruns; thus, understanding how to improve communication in construction projects is essential.

Built Technologies is a Nashville-based FinTech that revolutionizes construction lending by automating its collateral monitoring and draw process for servicing loans. Their proprietary platform helps lenders reduce risk and increase profitability and productivity while improving borrower experiences, simplifying compliance, and providing unprecedented portfolio insights.

Over 250 banks and private capital providers use its platform to streamline fund and document management, expedite funding decisions and draws, provide real-time visibility into project progress tracking and monitoring, and track commercial real estate (CRE) assets across portfolios.

Additionally, this platform provides analytics that enables lenders to identify areas for risk mitigation and cost savings. Furthermore, automated payments help reduce loan officers’ time spent collecting and reconciling loan accounts; multiple payment types (check, ACH, wire transfer) and channels are supported including check, ACH wire deposit, or direct deposit payment options are offered as payment solutions and integration with accounting systems allows it to post payments directly into accounts.

Built Technologies has quickly become one of the fastest-growing construction finance platforms in the US. TCV led its recent Series D funding round and raised $213 million bringing the valuation up to an astounding $1.5 billion. The funding will help expand operations and continue to innovate within the lending industry, support partnerships with leading technology systems and service providers, build its team and invest in product development; explore new markets; expand clients with innovative solutions; explore opportunities; as well as form a new business unit focused on commercial property developers that are pivotal as economic trends change.

Risk Management

Risk management encompasses steps such as identifying risks, assessing them, taking steps to reduce them, and monitoring them, as well as evaluating procedures and processes. Compliance with financial and information security legislation also needs to be ensured through this process. Proper risk management strategies can substantially positively affect an organization’s bottom line and competitive advantage; however, implementing one may prove more challenging.

Utilizing an in-depth risk assessment software platform can assist organizations in improving their risk management practices and increasing efficiency. Such a platform provides real-time information and eliminates manual processes prone to error; furthermore, such software also improves transparency by decreasing the lag time between data collection and reporting to stakeholders.

One of the most significant obstacles to effective risk management is the lack of transparency. This may occur through deliberate acts or oversights, most commonly when systems are not designed with risk in mind (for instance, New York City coronavirus scandal was due to failures in infection control at nursing homes). Furthermore, a lack of transparency may arise from failure to understand an organization’s risk appetite/tolerance and align risk management strategies with business objectives.

To address these challenges, organizations must create and communicate clear risk policies and procedures while employing best practices in their risk evaluation and monitoring activities. Carnegie Mellon University recommends adopting a structured approach for risk analysis based on categories like reputational risk, life/health safety risks, financial issues, and mission operations. In addition, key risks and their interrelationships must also be identified via centralized risk registers while sharing reports efficiently among stakeholders.

Implementing an effective risk management program can save an organization time and money while strengthening its reputation. Businesses using enterprise risk management frameworks such as ERM can implement best practices that ensure compliance with industry and legal standards to avoid costly errors, meet business goals more efficiently, and enhance company performance overall.

Analytics

Built Technologies is one of the fastest-growing FinTech companies transforming the $1.4 trillion construction finance industry. Their technology helps lenders accelerate draws and contractor payments, streamline compliance and gain unprecedented portfolio insights. Their secure cloud platform digitizes collateral monitoring and draws processes associated with servicing loans for commercial property developers and homebuilders. It also offers workflow automation, collaboration services, and other features designed to enhance risk management and increase profitability for lenders.

Built has experienced rapid expansion since its founding in 2014. Within 30 days alone, lenders who use Built’s solution processed more than $6.5 billion in draws and payments; during this period, the company tripled customer numbers while on track to double revenue this year.

To accelerate growth, the company is focused on optimizing its software and data utilization as well as its core competencies in lending and construction financing – this will enable them to provide more innovative tools to lenders, builders, and owners as economic trends change.

As well as its emphasis on technology and data, the company is also working on strengthening its team. They aim to hire individuals who understand customers’ business needs and can turn those into technical solutions, which can then be communicated to ultimate decision-makers within an organization.

Parker noted that the Built Technologies team had done an outstanding job meeting this goal. But there is still work to be done; one key challenge for the company will be creating scalable and reusable solutions instead of developing applications for specific use cases; they must also access both structured and unstructured data in different ways.

The company has teamed up with Oceanfrogs’ data analytics platform to meet its goal. Oceanfrogs will use predictive analytics to help the company identify future performance trends quickly, using insights gleaned from this partnership to build better software and facilitate faster growth over time. They hope that through Oceanfrogs, they will be able to increase revenue, boost productivity, reduce operational costs, and make more informed investment decisions.