Construcciones Yamaro: Why tech adoption is a good bet for the industry

Payapps
Image: Payapps

Construction productivity is back in the national spotlight. With Australia facing its slowest productivity growth in decades, pressure is mounting on key industries to do more with less — and construction is firmly in the crosshairs. Despite being one of the largest contributors to GDP and employment, the construction sector’s productivity has barely moved in 30 years. According to the Australian Constructors Association (ACA), construction productivity has fallen 7.8 per cent since 2002, while wages have risen by over 85 per cent.

Governments are calling for reform. The media is highlighting delivery delays and cost blowouts. But while the headlines focus on cranes and concrete, the real productivity opportunity lie deeper — we must address one of the industry’s most overlooked inefficiencies: manual, fragmented, and inconsistent back-office workflows.

Beyond the jobsite: where productivity really breaks down
When productivity is discussed, focus often turns to what happens on site — labour shortages, machinery, materials. But much of the opportunity to improve sits upstream, in the day-to-day workflows that underpin project delivery.

Across commercial, finance and operations teams, many construction businesses are still relying on a patchwork of spreadsheets, emails, PDFs and legacy systems. Tasks like budgeting, subcontractor onboarding, contract management, progress claim tracking and payment approvals are bogged down by inefficiencies.

Payapps
Image: Payapps

These aren’t small friction points. They impact how quickly decisions are made, how reliably data is shared, and how well teams collaborate. In an industry where margins are tight and time is critical; these compounding inefficiencies are a major drag on performance.

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“When builders and subcontractors are still chasing claims through inboxes and spreadsheets, productivity suffers,” says Mark Ballinger, Director of Product Strategy at Payapps. “It’s a hidden cost that shows up in delays, disputes and burnout.”

The hidden drain on efficiency
A 2024 Payapps survey of over 1,000 quantity surveyors and contract administrators found that:

  • 26 per cent are still managing progress claims manually
  • Over 44 per cent experience frequent disputes linked to claims or variations
  • 1 in 4 professionals spend more than 10 hours a week on repetitive admin tasks

This level of inefficiency has real consequences. It affects profitability, leads to late payments, increases compliance risk, and contributes to staff turnover. It also prevents professionals from focusing on higher-value work like pricing, forecasting, and commercial strategy.

Where technology can move the productivity needle
The good news? The tools to fix these problems already exist — and they’re proven. The ACA estimates that better project procurement and management could unlock $56 billion in extra capacity each year.

Payapps’ own research shows that companies already using digital tools to manage workflows are:

  • Nearly twice as likely to report productivity gains compared to digitally behind peers (49 per cent vs 27 per cemnt)
  • Six times less likely to receive frequent subcontractor queries, thanks to real-time visibility
  • Saving between 14 and 31 hours per week by automating progress claims and variation management

“Technology doesn’t have to be complex to be impactful,” says Ballinger. “We see builders streamline claims and approvals in a matter of weeks, freeing their teams to focus on more strategic work.”

Digital platforms like Payapps integrate with ERPs and accounting systems, creating a single source of truth for claims, approvals and compliance. That means fewer disputes, better transparency, and faster, more reliable payments.

Progress claims: a microcosm of the bigger problem
Progress claims may seem like routine admin — but in reality, they’re a high-risk process. When mismanaged, they create cash flow gaps, compliance breaches, and fractured relationships between builders and subcontractors.

Payapps’ finance research found that:

  • 41 per cent of finance teams still rely on manual claim processes
  • 53 per cent find it difficult to meet regulatory timeframes under the Security of Payment Acts
  • 44 per cent say claim inefficiencies directly impact team satisfaction and retention

Digitising this process doesn’t just save time — it strengthens resilience. It improves accuracy, speeds up approvals, and gives everyone — from commercial managers to CFOs — a clear view of project status.

“What’s exciting is how quickly you see the change,” Ballinger explains. “It’s not just the time saved — it’s the boost in confidence, collaboration and control across the business.”

A call for smarter change
Lifting construction productivity isn’t just about site performance. It’s about how we work, how we collaborate, and how we manage the flow of information and decisions.

The ACA has made it clear: we don’t need more innovation — we need wider adoption of what already works. And cultural resistance, not technology availability, is the biggest barrier.

“Construction doesn’t need more bespoke tools, it needs standardisation and predictability,” Ballinger adds. “It needs practical, connected solutions that scale. Progress claim automation is a great place to start — it’s measurable, it’s fast to implement, and it benefits all parties involved in the payments process.”

As demand grows, skilled labour becomes harder to find, and compliance requirements continue to evolve, the businesses that invest in operational efficiency will be the ones best positioned to thrive.

 

The post Why tech adoption is a good bet for the industry appeared first on Inside Construction.



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