IPEX Monitor
IPEX Monitor
IPEX
Get subcontractor payment transparency
without the awkward builder conversations.
IPEX has given developers the ability to identify non-payment of subcontractors before approving further claims, eliminating a major development risk.
But while many have jumped at the chance to make sure that progress payments are going where they should, a number of developers (and lenders) have indicated that they’re struggling to have that conversation with their builder.
Commercial realities mean that full payment protection may not always be attainable. But even if you’re not in a position to impose builder withdrawal restrictions on your next project, you no longer need to give up subcontractor payment transparency as well.
A version of IPEX that builders can’t refuse
IPEX Monitor operates under the same principles as the standard IPEX platform but removes a builders’ only legitimate objection – an inability to access letting gains without disclosing them. Importantly, IPEX Monitor retains IPEX’s standard level of payment transparency as a deterrent to bad behaviour.
Under IPEX Monitor, builder prelims, margin and additional letting gains can be withdrawn from the project account without developer oversight or approval however, the developer and lender can still confirm who’s been paid, when and how much (% of total contract paid) before releasing the next payment.
Practical outcomes for developers and lenders
Escalate protections as soon as payment issues are identified
If IPEX payment controls aren’t attainable,
you can still have payment transparency with IPEX Monitor
- Progress payments are still made into a project-specific bank account.
- The developer/lender can view who has been paid, when and the percentage of total contract value they’ve been paid to date for cross referencing against QS assessment/validation of stat dec
- Non-payment of subcontractors/suppliers linked to any claim can be identified immediately, with contractual triggers allowing escalating of payment protections and builder restrictions back to ‘full’ IPEX levels
- Trust obligations remain and the developer will still have the right to take over the project account in the event of payment default/insolvency (not enforceable under QBCC)
- All transactions are tracked from day 1; full transaction history will be made available to the developer in an insolvency event
Who we work with
IPEX software
Industry-standard payment checks vs IPEX Monitor vs IPEX
Developer protections and rights
Industry-standard processes
Require the builder to submit a ‘stat dec’ confirming they’ve paid all relevant subcontractors & suppliers
Access to subcontractor & supplier payment information allowing validation of builder ‘stat dec’
Ability to identify non-payment of relevant subcontractors/suppliers before approving subsequent claims
Ability to limit builder access to subcontractor/supplier portion of each progress payment
Make builders’ payment conditional on the ‘on time & in full’ payment of subcontractors & suppliers
Developer right to escalate transparency & control under ‘financial distress’ / payment default events
Developer right to access full account transaction history in a ‘financial distress’ / payment default event