B2B Payments

AvidXchange Tackles Construction’s AP Challenges

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AP automation firm AvidXchange is tackling some of the construction industry’s biggest supplier payments challenges, but it isn’t doing it alone.

The company said Thursday (Feb. 2) that it is teaming up with GCPay, an online platform for construction companies to automate their subcontract management needs. AvidXchange will reportedly lend its AP automation solutions to corporate clients using the GCPay platform in a move that promotes electronic B2B payments to subcontractors.

“The GCPay.com team is excited to begin our partnership with the company of the size, stature and expertise of AvidXchange,” said GCPay Chief Operating Officer Daniel Brunelli in a statement. “We have been recommending its payment services for quite some time to our clients sand prospects and have been impressed with the company’s operations, technology and people.”

He added that their collaboration means joint customers will have access to invoice processing and payment solutions that fit the unique needs of the construction industry.

“Prospective and current clients of either AvidXchange or GCPay.com will have the opportunity to adopt the joint solutions, ensuring a streamlined, integrated method to process conditional payments to subcontractors, which can represent 75 percent or more of the total cost of a construction project,” Brunelli continued. “This is truly a win-win partnership for both companies’ clients, and our team looks forward to launching the joint solutions soon with the construction professionals at AvidXchange.”

In another statement, AvidXchange CEO and Cofounder Michael Praeger said that the construction industry has been one of the company’s key focuses in recent years.

“We’re also looking forward to providing our construction customers with additional offerings to enable them to process conditional payments, such as payments that have a lien waiver associated with them,” he said.

A lien waiver ensures that a subcontractor is paid once the agreed-upon work is completed or else applies a lien on the property until the subcontractor’s invoices are settled.

AvidXchange’s targeting of the construction industry mirrors a recent collaboration between Optal and Open ECX in the U.K. that similarly aims to streamline and automate the B2B payments process specific to the construction industry.

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