Business management technology provider Sage is rolling out a new solution designed to help construction firms track the health of company finances and compare performance against industry peers.
In a press release issued on Monday (April 22), Sage announced an integration between its Sage 300 Construction Real Estate platform and a benchmarking tool that is widely used in the industry. The benchmarking solution, the Construction Financial Management Association (CFMA) Financial Benchmarker Survey, uses data from Event 1 Software's Office Connecter Query to analyze construction industry financial performance and trends.
The integration enables Sage users to compare their own financial performance with that of industry peers as presented in the Benchmarker Survey, including metrics like accounts payable and accounts receivable lengths, as well as company net income as a percentage of revenue.
The integration also means Sage users can automate their submission of data to the Benchmarker Survey.
"Many of our customers complete the CFMA Financial Benchmarker Survey each year so we developed a way for them to complete the survey quickly and more accurately," explained Sage Construction and Real Estate Vice President Dustin Anderson in a statement. "This offering is our latest commitment to helping construction firms improve their financial health."
This year's Benchmarker Survey will be open for several more weeks, Sage noted.
The solution comes amid growing concerns over the financial health and security of construction supply chains, particularly in the U.K., where the collapse of Carillion and, more recently, Dawnus has placed thousands of vendors in jeopardy, without assurance that outstanding invoices will be paid.
The cases highlight the risk of late and non-payments in the construction sector, and how such cash flow constraints can impact the financial health of smaller vendors and subcontractors.
In the U.S., PwC research has found that construction and engineering companies wait the longest of any other sector to receive payment, with an average of 54 days sales outstanding.