Construction financial processes: 10 costly problems and how Viridem protects you
The construction industry in Canada and Ontario faces specific financial challenges in accounts payable management, subcontractor payment and regulatory compliance (CCQ, RBQ, CNESST, Canadian privacy law). Here are the 10 major problems experienced by every project manager, site controller and administrative director and how Viridem, the Canadian-owned proprietary AP automation software since 2013, delivers measurable answers.
1 Frequent payment delays
Payment delays are common on Quebec and Ontario construction sites, causing cash flow strain among subcontractors and significant financial costs.
How Viridem helps: invoice validation and payment automation with mobile workflows signed from the site. Delays go from several days to a few hours, your cash flow is under control and your subcontractors paid on the contractual due date.
Source: ACRGTQ Final report on payment delays in the construction industry.
2 Human errors in invoice processing
Manual data entry causes errors, duplicates and inconsistencies on site codes, increasing financial risks and cost variances.
How Viridem helps: our OCR + AI eliminates manual data entry at 99% accuracy. Site codes, holdbacks and accounting allocations are extracted automatically and validated against your ERP.
Source: CEPS, EU Payment Observatory, e-invoicing thematic report, 2024 (15% of invoices contain an error).
3 Lack of real-time visibility and control
Without an automated system, precise tracking of committed payments, open POs and holdbacks per site becomes a headache. Budget overruns are identified too late.
How Viridem helps: configurable dashboards with real-time global visibility per site, phase and cost center. Your project managers and your finance department see the same data, updated to the second.
Source: Aberdeen Group / Aberdeen Strategy & Research Best-in-Class Accounts Payable Performance Benchmarks, 2022.
4 Complex management of purchase orders and holdbacks
Manual PO management and the tracking of 10% holdbacks per subcontractor cause errors and delays and sometimes payments released twice when the site closes.
How Viridem helps: Viridem centralizes POs and automates the tracking of 10% holdbacks. Release follows your business rules (acceptance report, lifting of reservations, end of warranty).
Source: Quadient Supplier invoice dematerialization solution (2023).
5 Cash flow problems due to customer payment delays
Customer payment terms longer than supplier terms create chronic cash flow strain, particularly on large public sites.
How Viridem helps: control of outgoing payment terms and prioritization according to your cash flow objectives. Systematically capture early payment discounts (1-2%).
Source: Guide de l'Habitat Cash flow problems in construction.
6 High administrative costs linked to manual management
Manual processing of invoices, receiving slips and contract notices causes high administrative costs, in a context of labor shortage of accounting staff in Quebec.
How Viridem helps: automation reduces processing time by 60% on average. Your teams focus on cost analysis per site and supplier negotiation.
Source: IOFM (Institute of Finance & Management) AP Department Benchmark (average cost US$12-16/invoice for manual entry).
7 Integration difficulties with existing ERP systems
AP integration with construction ERPs (Sage 300 CRE, Maestro Technologies, Vision Construction, Procore, Acumatica) can be complex, causing double entries and discrepancies between AP and accounting.
How Viridem helps: native bidirectional integration with the main construction ERPs in Quebec and Ontario. Real-time synchronization, no double entry.
Source: hh2 The Complete Guide to Construction ERP Integration.
8 Risk of fraud and non-compliance
The absence of automated controls on supplier bank details changes or amount anomalies increases the risk of wire transfer fraud (according to the AMF, growing strongly in Quebec since 2023).
How Viridem helps: flexible approval workflows, double validation on any bank details change, automated invoice control and timestamped audit trail. Law 25 + PIPEDA compliance.
Source: Ardent Partners State of ePayables: The Accounts Payable Profession in Transition, 2024 edition.
9 Lack of process standardization
The absence of standardized processes between sites, divisions or branches makes efficient AP management difficult each project manager has their own method.
How Viridem helps: preconfigured construction workflows adaptable to your business rules (tolerances, thresholds, automatic escalation). Standardized and auditable across all your sites.
Source: ClickUp Business process standardization.
10 Complex management of payments to subcontractors
You manage 30 to 100 subcontractors per year. Verifying CCQ, RBQ and CNESST certificates, tracking 10% holdbacks and contract notices mobilize enormous administrative time and create litigation risks.
How Viridem helps: automatic capture of CCQ and RBQ certificates, holdback calculation, validation of payment release conditions according to your rules, and complete audit trail. No surprises when the site closes.
Source: For Construction Pros Subcontractor management challenges.
Conclusion: Viridem, your financial performance partner
In construction in Quebec and Ontario, the complexity of financial processes can cost dearly if it is not controlled. Viridem offers a complete solution to automate accounts payable, reduce errors, improve cash flow and ensure regulatory compliance. Thanks to fast automation and optimized construction workflows, companies observe a fast ROI (3 to 12 months), recover administrative time, reduce their costs and secure their payments.
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