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Current Liabilities are financial obligations or debts that a construction company has to settle within a short-term period, typically within a year. These usually include suppliers' payments for building materials, salaries and wages for construction workers, short-term loans for immediate project needs, interest payments on construction loans and taxes. These might also consist of project-related accrued expenses, or money that the company owes but has not been billed for yet, such as utilities. It's critical for businesses running construction projects to properly manage their Current Liabilities to ensure financial stability and the smooth completion of projects. The ability to meet these short-term financial obligations is a key indicator of the financial health of a construction company.

Percentage of completion (POC) is a metric that represents the proportion of work completed on a construction project at a given point in time. It is expressed as a percentage of the total contracted work. The POC is important to subcontractor workflows for several reasons:

• Payment schedules: Most construction contracts stipulate that subcontractors receive payment based on the percentage of work completed rather than a lump sum payment at the end of the project. The POC determines the amount of payment that a subcontractor can request from the general contractor (GC) or the project owner for the work performed during a specific billing period.
• Cash flow management: Subcontractors rely on progress payments to maintain a healthy cash flow and cover expenses such as labor, materials, and equipment. The POC directly impacts the timing and amount of progress payments received, allowing subcontractors to plan and manage their financial resources effectively.
• Project monitoring and control: Tracking the POC helps subcontractors monitor their progress against the project schedule and budget. It enables them to identify potential delays or cost overruns early on, allowing for prompt corrective actions.
• Dispute resolution: In the event of disputes or claims related to payment or project delays, POC documentation can serve as evidence to support the subcontractor's position and substantiate their claims for outstanding payments or compensation.
• Resource allocation: By monitoring the POC, subcontractors can better plan and allocate their resources (labor, materials, equipment, etc.) across multiple projects, ensuring efficient utilization and avoiding resource conflicts or shortages.
• Project closeout: The POC is crucial during the project closeout phase, as it helps determine the final payment due to the subcontractor and ensures that all work has been completed according to the contract terms.

Overall, POC serves as a versatile tool throughout the entire project lifecycle, from initial payment requests to final closeout. And with Siteline, managing POC workflows becomes effortless. Siteline makes progress billing a cinch by:

• Generating custom pay applications with real-time POC calculations
• Offering intuitive dashboards for clear financial visualization and decision-making
• Integrating with GC payment portals for accurate, timely pay application submissions
• Centralizing all documentation for enhanced collaboration and communication

Book a demo today to experience how Siteline can empower your team to make informed decisions, maintain a steady cash flow, and ensure successful project closeouts.

Davis-Bacon refers to the Davis-Bacon Act of 1931, a pivotal labor law in the United States that impacts the construction industry. Established by Congress, this act ensures that workers on federal construction projects are paid at least the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. This commonly applies to federally funded or assisted construction projects such as public buildings, highways or dams. The main goal of this law is to prevent non-local or out-of-state contractors from low-balling local firms on wages, providing a level playing field for all contractors and protecting local labor markets.