How Project Claim Delays Are Costing Your Business Money (And How to Stop Them)

Claim and retention management is a critical process that ensures contractors receive timely payments for completed work. 

However, disputes, incomplete documentation and inefficient workflows can lead to delays in processing claims, creating a financial burden for both contractors and project owners.

This blog post will delve into the hidden costs of project claim delays, explore how Odoo, a powerful open-source ERP software, can streamline claim and retention management and introduce Pragmatic Techsoft’s innovative Odoo module, PragTech Progress Claim and Retention Policy, designed to optimize this process in Odoo 17.

THE HIGH COST OF CLAIM DELAYS

The financial consequences of claim delays are substantial. According to a McKinsey report, claim delays can cost businesses up to 15% of the project value. 

This translates to lost revenue, decreased profitability and strained relationships with contractors.

Here’s a breakdown of the various ways claim delays impact your business :

1) Increased carrying costs : Delayed payments mean contractors hold onto project funds for longer, impacting their cash flow and potentially delaying further work. This, in turn, can lead to increased carrying costs for project owners.

2) Productivity losses : Claim disputes and delays can divert project managers and other staff away from core project activities, hindering overall productivity.

3) Reputational damage : Businesses that consistently experience claim delays can develop a reputation for being unreliable payers, making it difficult to attract and retain top talent and secure future projects.

Streamlining Claim and Retention Management with Odoo

Odoo, a leading open-source ERP software, offers a robust platform for managing various aspects of your business, including project management and claim and retention processes.

Here are some key features of Odoo that can help you streamline claim and retention management :

1. Centralized data management : Odoo allows you to store all project-related information, including contracts, invoices, and claim documents, in a central location. This eliminates the need for manual data entry and reduces the risk of errors.
2. Automated workflows : Odoo can automate key steps in the claim processing workflow, such as triggering notifications for approvals and sending reminders for overdue documentation. This helps ensure claims are processed efficiently and minimizes delays.
3. Improved communication : Odoo facilitates seamless communication between project managers, contractors and other stakeholders involved in the claim process. This fosters transparency and collaboration, leading to faster resolution of disputes.

Introducing Pragtech Progress Claims and Retention Policy

Pragmatic Techsoft, a leading Odoo implementation partner, is excited to introduce Pragtech Progress Claims and Retention Policy, our innovative Odoo module specifically designed for Odoo 17.

Pragtech Progress Claims and Retention Policy builds upon the core functionalities of Odoo by adding features that cater to the specific needs of project claim management. These features include –

1. Progress claim creation and submission : Streamline the creation of progress claims with pre-defined templates and automated calculations based on project milestones.
2. Real-time progress tracking : Gain real-time insights into project progress with visual dashboards and reports, allowing for proactive claim management.
3. Automated claim approvals : Define approval workflows with customizable rules to automate the claim approval process and reduce bottlenecks.

By implementing effective claim and retention management strategies, businesses can significantly reduce the financial impact of project delays. 

Odoo, with its comprehensive features and functionalities, provides a powerful platform for streamlining this process.

Pragmatic Techsoft’s expertise in Odoo implementation and our innovative PragTech Progress Claim Retention module can help you optimize claim management in Odoo 17, improve project delivery efficiency and ultimately, boost your bottom line.

Want to learn more about how Pragmatic Techsoft can help you streamline claim and retention management in your business? Contact our team today!

Stay tuned to our website and blogs for more insights on Odoo 17 and how it can empower your business.