ARE YOU HAPPY TO RELY ON A ‘STAT DEC’ OR DO YOU WANT TO BE SURE SUBCONTRACTORS ARE GETTING PAID?

Whilst the logic behind the request for a ‘stat dec’ is sound, the process itself is less so, relying entirely on the assumption that declarations are always being made truthfully. If even a small minority are willing to sign off without genuine confirmation of payment distribution or worse, deliberately submit a false or misleading declaration, the utility of the entire process is diminished.

IPEX allows Developers to confirm who has been paid & when before approving further progress claims, whilst open book configuration provides access to the complete account transaction history: who, when, how much and percentage paid against the Builder-entered contract value.

WHAT IS IPEX?

IPEX is an online payment platform that secures Developer/Lender funds intended for a project, protecting them in the event of Builder insolvency.

IPEX software integrates with a dedicated construction project bank account to ensure that progress payments are used only to pay approved Sub-Contractors & Suppliers linked to that specific project. IPEX provides Developers with visibility over who has been paid & when, without sharing a Builders’ commercially sensitive information.

Whilst IPEX protects Developer & Sub-Contractor payments, it also helps financially secure Builders to validate their money management practices, differentiating their bid from competitors in the process.

Should your Builder become insolvent before completing an IPEX Project, the impact to Lenders & Developers is minimised as:

  • any progress payment made via the IPEX platform has either been distributed to approved parties or remains in the account &,
  • the Developer is entitled to replace the Builder as account trustee, gaining full visibility of all previous transactions & the ability to make payments directly to Suppliers/Sub-Contractors, removing much of the work associated with financial auditing & substantiation of creditor claims, while minimising delays to practical completion

PERCENTAGE OF TOTAL PAYMENTS STATUS REPORT

THE IPEX SOLUTION: HOW DOES IPEX PROTECT YOUR INVESTMENT?

SHIELDS YOUR PROJECT FROM ALL OTHERS & ENSURES YOUR MONEY IS SPENT ON YOUR PROJECT

IPEX prevents Lender/Developer money from being rolled into other projects or otherwise misappropriated, removing much of the motivation behind manipulation of progress claims.

HELPS IDENTIFY FINANCIALLY SECURE BUILDERS WHILST DETERRING THOSE WITH CASH FLOW ISSUES FROM TENDERING

A Builder willing to operate within the IPEX framework is confirming that they have no need to divert Lender funds to another project. Builders who need to ‘buy’
a project simply will not bid.

PROVIDES TRANSPARENCY OVER HOW BUILDERS ARE DISTRIBUTING YOUR FUNDS

IPEX allows you to confirm which Sub-Contractors & Suppliers have been paid prior to approving further progress payments. Developers can cross check payments against work performed rather than having to rely on the current ‘stat dec’ process

ADDITIONAL SECURITY GIVEN LIMITATIONS OF ‘POINT IN TIME’ BUILDER AUDITS & INSURANCE ‘GAPS’

You can’t insure against Builder Insolvency but protecting your investment with IPEX is the next best thing, ensuring that your project cannot be ‘borrowed from’. Even if one or more projects linked to your Builder run into financial trouble, IPEX maintains a ring-fence around your funds.
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