Abstract:
This web enabled system is capable of facilitating the management of unlimited projects within which an unlimited number of parties may participate to complete an unlimited number of stages, substages and tasks. The system facilitates the efficient disbursal of monies while reducing the inefficiencies that result when money is not timely disbursed. It uses a quasi-escrow system to secure waivers and distribute money simultaneously. Projected timelines for completion, tracking of materials used and materials stored, and partial payments and releases are all managed by the system based on inputs by participating parties. Allowed inputs are governed by each party&#39;s function and the password security level provided therefore, in balance with checks against required approvals or releases by other affected parties and intrasystem consistency checks.

Description:
FIELD OF INVENTION  
       [0001]     Complex task management system for multiple parties providing multiple services or paying for them, in a multiple stage project including facilitation of partial payments and approvals therefore.  
       BACKGROUND OF THE INVENTION  
       [0002]     Contracts pertaining to tasks and projects can involve multiple parties providing services, funding, and loan services and involve multiple stages with a host of imbedded timelines. Like dominoes, completion of the whole project depends on accurate performance of activities and timing that makes up the parts. Although all of this information can and has been tracked on paper or by computer in the past, “tracking” in the passive sense, did not provide the pro-active prompts necessary to keep a project moving toward completion nor a dynamic interface providing real time changes and interaction by participating parties.  
         [0003]     The design and construction industries are highly fragmented and are riddled with inefficiencies, the largest one being how to get paid on a timely basis so that progress on the project can continue. There are conflicting interests relative to the signing of releases, provision of payment to subcontractors and vendors, and the distribution of money to contractors without a means to assure it is properly distributed to those needing payment. Generally, getting paid for services will require a contract and a schedule of values to invoice against over the contract period. The normal turn around time for partial payment in this environment can exceed 45 days, sometimes 90 days. Moreover, the process of requesting payment, obtaining approvals therefore, and transfer of funds is not consistent month to month. The number of man hours spent per year tracking documents necessary to effect all the partial payments in a large project is staggering. What was needed was a system accessible by all parties that could facilitate the dynamic management of the tasks, materials, and scheduling, and also provide a way to shorten the turn around time from bill to payment for recurring payments.  
         [0004]     In addition to design and construction, facilities management, legal services, financial services, product development and manufacturing all present the same need i.e. the need to manage recurring payments for long term service contracts. This need requires a remedy for the exchange of money for services wherein money will only be paid upon release by the payee of any obligations to pay and the release will only be provided upon receipt of payment.  
         [0005]     The objectives of the present invention are:  
         [0006]     To provide a web-enabled pay application service to expedite, organize and synchronize the payment process between payors and service provides wherein each is a party to a contract.  
         [0007]     To facilitate any contract for services that requires a recurring pay request, approval sequences and disbursements.  
         [0008]     To automatically prepare, forward and execute an authorized lien waiver as part of the payment process;  
         [0009]     To minimize the time and tasks presently required to obtain waivers and complete payments.  
         [0010]     To reduce error associated with inaccuracies of multiple entries and recordkeeping, provide automatic email notification of process steps in the payment process, create a paperless process facilitated by digital signature sign-offs and provide password-keyed variable access to different parts of the system based on the identity and function of the party holding the password.  
         [0011]     To allow full reporting capabilities to monitor on-going changes to schedule of values, budgets, completion, materials, etc.  
         [0012]     To allow for multiple parties to integrate into a master pay request including sub contractors and vendors.  
         [0013]     To provide a “bill pay” option to release funds to sub contractors or vendors.  
       BRIEF SUMMARY OF THE INVENTION  
       [0014]     The present invention comprises a web enabled system capable of facilitating the management of unlimited projects within which an unlimited number of parties may participate to complete an unlimited number of stages, substages and tasks. The system facilitates the efficient disbursal of monies while reducing the inefficiencies that result when money is not timely disbursed. Projected timelines for completion, tracking of materials used and materials stored, and partial payments and releases are all managed by the system based on inputs by participating parties. Allowed inputs are governed by each party&#39;s function and the password security level provided therefore, in balance with checks against required approvals or releases by other affected parties and intrasystem consistency checks.  
         [0015]     For example, a party providing drywall services may only be allowed access to the substages in which it is engaged to provide services and then, perhaps, only to certain fields relevant to reporting task completion, materials used, change requests, and payment requests. In contrast, a general contractor may have access to all substages but, although not allowed to input progress data regarding task completion by a subcontractor, will be required to approve the progress data input by that sub. A party providing finances for the project may have read-only access to the vast majority of the system&#39;s functions and have active access only to review, comment, approve, reject and actuate release of funds. The system here acts as the transfer agent for funds and waivers. The variations in accessibility are governed by password protected security levels.  
         [0016]     As the project is begun, those parties from whom approval or signature will be required will agree that his signature be electronically applied (not sure what your saying here. We use scanned images of signatures for DMPS. We have discontinued the use of having Approver or originators sign a sheet of paper and then scan in and upload for use. It&#39;s a formality that is not required when your already authenticated at the log in and password level or are you saying that the User needs to be “signed up” and “authenticated” to get the log in and password in the first place? If yes, then the “System” will do this before people are inserted into projects and contracts.) upon the signor&#39;s activation of a password-protected confirmation and that, upon such application, the electronic signature will be binding as if he had signed it physically.  
         [0017]     The system is multi-relational such that a switch/flag/indicator can be set so that a change in a particular field will be reflected in another field or will be used to re-calculate a value in another field. For example, if a particular task cannot begin until a first task is completed, the system can be set so that if progress in the first task is slowed, the target dates of the other are changed accordingly, necessary and affected parties are so notified, and approval of the change it obtained from the approving party. Materials stored balances are maintained and “red flag” alerts are provided. This system is unique in that it tracks materials relative to the purchase date and use date of each particular lot of goods rather than storing a present inventory versus a total.  
         [0018]     If a pay request goes without response, the system will email a reminder to the recipient of the request. For example, if a pay request is denied, the status of that request is presented to the requestor in a manner that draws its attention. As tasks or substages are completed for which partial payments are due, the appropriate party calls up a form pre-populated with substage information, enters the date and portion completed and requests payment. The system uses a predetermined authentication routine to deliver the request to a pre-determined approver or approvers. Prior to sending the pay request, the requester is presented with the digital Lien Waiver form with all relevant information about the request pre populated. The form is generated by the system reflective of the pay request data and may only require the signor to actuate his electronic signature. The requestor must sign the Lien Waiver again to complete the pay request process. Requiring the signature at this point in time means the requestor completes all entry in the system at one time and simply waits to be paid. The electronically signed Lien Waiver is held by the system and can only be forwarded to the recipient when funds are forwarded to the requester, or can be deleted if the request for payment is rejected. The Lien Waiver is otherwise inaccessible.  
         [0019]     The approver then checks the work and approves (or disapproves) payment. As part of the approver approval process, the approver must also sign the pay request and the Lien Waiver as proof the Lien Waiver has indeed been reviewed. At this point, the system alerts the requester that approval was made. Then the system alerts the payor of the requested amount, its approval status, and of the completed lien waiver form. Payor releases funds to the system; the system verifies the amount transferred matches that approved on the pay request, and then simultaneously sends the lien waiver form and the funds to the respective destinations. This negates the need for a double signature or temporary release form (one before payment received and a final one after) and ensures fast, reliable payment upon completion of Lien Waiver. When the system is set up to pay vendors and subcontractors as is preferable, the funds go directly to the recipient and do not get paid to the contractor&#39;s account wherein the contractor would be required to take additional steps to forward to the subcontractor or vendor.  
         [0020]     In an alternative arrangement, once the requester receives funds, he can use a function similar to an online bank bill pay function to transfer funds for direct deposit to pay subcontractors or vendors that may not have been entered as pay requesters on the system.  
         [0021]     Reports generated by the system upon command are many and varied. Running balances; retainage per task, substage, and overall; task completion reports; vendor status and service supplier status across tasks and subtasks; and Next Pay App reports are all available and can be set to autogenerate at predetermined times or on command. In addition, the system stores and makes available read only copies of project documents e.g. subcontracts, vendor agreements, lender documents, and others. 
     
    
     DETAILED DRAWINGS  
       [0022]      FIG. 1  Administrator&#39;s Flow Chart  
         [0023]      FIG. 2  User&#39;s Flow Chart  
         [0024]      FIG. 3  Approver Process Flow Chart  
         [0025]      FIG. 4  Pay Process Flow Chart  
         [0026]      FIG. 5  Project Set Up Flow Chart  
         [0027]      FIGS. 5   a - 5   j  Screen shots illustrating the Project Set Up  
         [0028]      FIG. 6  Set Up of Contracts and Phases Flow Chart  
         [0029]      FIGS. 6   a - 6   d  Screen shots illustrating the Set Up of Contacts and Phases  
         [0030]      FIG. 7  Schedule of Values Flow Chart  
         [0031]      FIGS. 7   a - 7   c  Screen shots illustrating the Schedule of Values  
         [0032]      FIG. 8  Profile Round Flow Chart  
         [0033]      FIG. 9  Pay Application Process Flow Chart  
         [0034]      FIGS. 9   a - 9   h  Screen shots illustrating the Pay Application Process 
     
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT  
       [0035]     The invention is a computer- and web-enabled multiparty, multicontract management system  10  best shown in  FIGS. 1-4 . The system  10  is implemented through the web by software that has certain operative functionalities found in other collaborative work software wherein an unlimited number of projects can be managed having an unlimited number of substages, tasks, and involved entities that access and interact through the system. The invention is described in terms of processes or steps some of which are initiated by the user, some of which are managed by the system. According to methods already known in the art, data entered will be checked against stored data, the system will check for data format as necessary and flag missing data where such data is critical. Communication protocols between networked computers accessing the system are used as known in the art.  
         [0036]     As an example of a contract managed by the system  10  of the present invention, a construction project is used as illustration. Construction projects  11  often include a number of different contracts  12  each of which is made up of phases  14  which are typically task oriented. Phases require labor  16 , materials  18 , or both  20 . The project is owned by an owner  22  and often funded by a fund holder  24  (e.g. financial institution). The entities that provide labor or materials or both are traditionally paid upon accomplishment of certain phase milestones  23  e.g. completion of a task, or portion of a task, delivery of materials, etc. In order to use the system  10  of the present invention to manage a construction project  11 , the following functions must be understood and addressed: Project Set Up  30 , Contracts and Phases Set Up  50 , Schedule of Values  70 , Profile Round  100 , Change Order  110 , Pay Application and Payments  120 , Material Stored  82 , and Reporting  300 .  
         [0000]     Project Set Up  30   
         [0037]     The system  10  provides means for uploading of contract documents which may be viewed by various users. The Project Set Up  30  comprises means to assign multilevel party identity dependent accessibility  31 . Means to assign multilevel accessibility  31  first requires the creation of security zones  36  and the designation of security zones  36  to certain entities. At least one entity must be designated a Super Administrator  32 . The Super Administrator has the highest level of access to various parts of the system  10 , is responsible for setting up a Project  34 , assigning the Project  34  to one or more Security Zones  36 , and setting up Administrator  38 , Company  40  and User  42  accounts  43  with access to certain Security Zones  36 , respectively. The Administrator  38  can also set up User  42  accounts. A Pay Application Administrator  44  is also designated and its function will be described in Contracts Set Up  50 .  
         [0038]     On a Project Form  46 , the Super Administrator  32  simply enters a project name and description and designates a Security Zone  36  for the Project  34 . Other details for the  
         [0039]     Project  34  can be stored here, as well. Once the Project  34  is set up, the Super Administrator  32  enters information about the Administrator(s)  38  for the Project  34  and designates the appropriate Security Zone  36 . In a preferred embodiment, this information includes the Administrator&#39;s  38  name, email address, mailing address, agreement to be bound by electronic signature, and electronic signature block  49   a . From here, the Administrator  38  or Super Administrator can enter User  42  information and designate an appropriate Security Zone  36  for that User  42 . The system  10  then notifies each User  42  of its login  47  and password  49 .  
         [0040]     Set up of Contracts and Phases  50   
         [0041]     Projects, Contract, Phases are interchangeable with labels such as Builder, Contract and Vendor or other such appropriate terms. Set up of Contracts and Phases  50  in the project can be simply accomplished. The Pay Application Administrator  44  first sets up the contract  51  in the Contract Set Up screen. He can then enter new Companies  40  or new Users  42  (or select from the list already in the system). The entry of a new Company or new User requires the completion of a series of data fields used for identification. In the preferred embodiment, the User profile further includes email address, position in the Company, his Logon ID, role, electronic signature block, and Security Zone access.  
         [0042]     Once the Users  42  and Companies  40  are entered, the Pay Application Administrator  44  can go to “Phase Setup”  54  where he describes the phase  55 , its duration  56 , provides project numbers  57 , sets up the review schedule  58  and records projected milestone dates  59 , phase cost total  60 , and retainage  61 . Next, he designates the participants  62  for the phase  55  which include entities that can apply for payment on this phase and those that will provide approvals. Those that may apply for payment on this phase are called Originators  66 . Those from whom Approval is required are called Approvers  68 . Means to designate a sequence for approval  64  is provided whereby the Administrator  44  selects Approvers  68  from the participants&#39; list  62  in the Order in which they must provide approval or rejection of this phase  55 . The last Approver is often the Fund Holder  24 . The system  10  also allows the Pay Application Administrator  44  to set up a list of participants that should be email notified relative to each Approver&#39;s  68  response to the application for payment, considered collectively as the Approval Sequence  69 . Once the approval sequence  69  is entered, it and the other Phase information are collectively referred to as the Phase Description  65 .  
         [0043]     Schedule of Values  70   
         [0044]     Once the approval sequence  69  has been entered, the Pay Application Administrator  44  may input all the necessary Schedule of Values  70  information. First, a category  71  and at least one subcategory  72  are chosen from a list which describes the Phase  55  in which a line item  73  of the Schedule of Values  70  will belong. Then, a selection is made whether the value  74  pertains to material  18 , labor  16  or both  20 , and the appropriate value  74  is inserted. The scheduled value  74  in dollars is then entered. A “Phase Description”  76  is the combination of the Contract and Phases Set Up  50  and the Schedule of Values  70 . Once the Schedule of Values  70  is completed, the Pay Application Administrator  44  enters his password  49  to sign off and begins the Profile Round  100 . Once the Profile Round  100  is complete (see below) the Schedule of Values screen  78  shows each line item  73  with identifying information and its scheduled value  74  along with other pertinent data including the cumulative sum of all previous pay applications collectively labeled previous application  79  as calculated by the system  10 . Two columns pertaining to the Work Completed this Month  80 ,  81  are presented wherein one shows labor and material installed this month  80 . The other shows labor and material installed plus material installed that was previously stored  81  and is followed by a number of columns pertaining to specificities of Materials Stored  82  (see Materials Stored section below). Calculated totals showing Total Completed and Stored to Date  84 , Percent Completed  86 , Balance to Finish  88 , and Retainage Amount  90  are System-generated amounts also displayed, line by line, on the Schedule of Values  70  screen.  
         [0045]     Retainage  90  is determined by the System  10  by applying the percentage entered at time of Contract Set Up. Retainage is released to the entities that have substantially completed their obligations to that line item when the line item on the Schedule of Values has reached “substantial completion” which, in the preferred embodiment, is set at 90%.  
         [0046]     Profile Round  100   
         [0047]     The Profile Round  100  follows the same approval sequence  69  as a Pay Application (to be further described in subsequent sections) will follow, however, the approval required here is not of a certain payment request but, instead, of the entire Phase Description  65 . So, the Originator  66  looks at the Schedule of Values  70  on an item  73  by item basis. Means to acceptor reject each line item  100   a  are provided. If the line item  73  is accepted  99 , the Originator inputs his password  49 . If a line item  73  is rejected  101 , the Originator  66  may input a comment  102  specific to that line item  73 , enters his password  49 , and then the profile goes back to Pay Application Administrator  44  for fix. The Approvers  68  all get a chance to reject/approve each line item  73  as well. Rejections  101  with line item-specific comments  102  are returned to the Originator  66 . Once approved and signed off by last Approver  68 , it is returned to Pay Application Administrator  44  to save and release back to the Originator  66 .  
         [0048]     Change Order  110   
         [0049]     Either by responding to a Request for Proposal or when needing to initiate a required change order  110 , originator  66  who is a contractor may select the Change Order screen  112  and input the requisite information  114 . The Pay Administrator  44  then selects the appropriate approvers  68  and initiates an approval round  116 . If the Change Order  110  is approved, it becomes an Amendment  118  to the Contract and the Pay Application Administrator  44  then adds to the Schedule of Values  70 . The requisite information  114  may also be imported from an outside system.  
         [0050]     Pay Application Process  120   
         [0051]     After the Profile Round  100  is complete, means to apply for payment  121  are available to the Originator  66 . Means to apply for payment  121  allows the Originator  66  to originate a Pay Application  122  upon completion of a Phase Milestone  23  and comprises the following steps: First, the Originator logs into the Project  34 , Selects the correct Contract  51  and Phase  55 . Then, the Originator  66  selects one of the line items  73  from the Schedule of Values  70  for which he is requesting a payment  121   a  and enters information as required by the Payment Application Form  122  including entry regarding stored materials  82  (see Stored Material section below). He completes a Lien Waiver Form  124  as automatically provided by the System  10  upon submission of the Pay Application Form  122 . The Lien Waiver Form  124  includes language releasing all claims relative to the work for which payment is being requested  126  and, upon entry of the Originator&#39;s  66  password  49 , the System  10  applies the Originator&#39;s  66  electronic signature  49   a  to the Lien Waiver  124  and sends the Pay Application Form  122  along with a notice  126  that the Lien Waiver Form  124  has been completed to the first Approver  68 . The first Approver  68  verifies the payment  121  by manually keying in the dollar figure for the payment  121 . If this figure does not match that in the system, the system  10  will not accept it. This requirement acts as a safety door by requiring at least one of the approver&#39;s  68  to truly look at the payment  121  being requested. The system  10  provides means for the first Approver to indicate  127  a response. If rejection  130 , means to indicate  127  allows the Approver to click the box for rejection and then enter reasons  132  therefore. Next, the system  10  removes all electronic signatures  49   a  from this Pay Application  122  and associated Lien Waiver  124 , and sends back to Originator  68  with the reasons  132  for refusal.  
         [0052]     When the first Approver  68  indicates approval, the means to indicate  127  approval  134  provides a check box and the system  10  then emails other entities as directed by the Phase Description  65 . Upon first approval  134 , next Approver  68  is notified there is a Pay Application  122  awaiting his approval  134  and he utilizes means to indicate  127  approval or rejection in the same manner. All other Phase Participants  62  can determine which Approver  68  is next in line by referring to the Schedule of Values  70  screen. The final Approver  68  is the holder of the funds  24  that are available to make the payment  121 . Upon his Approval, the requested payment  121  is transferred to a System Account  136 . The System  10  confirms the payment  121  has arrived and is available for transfer. Upon confirmation, the System  10  direct deposits the payment  121  in an Originator&#39;s  66  account  137  and sends the completed Lien Waiver  124  to the fund holder  124 . This process expedites the completion of the transaction, does not require separate completion steps or double signing by the Lein Waiver signor or the Funds Holder, and provides certainty that the funds are present and transferred at time of the transfer of the Lien Waiver and vice versa. It does not allow a contractor or other individual to control the timing of payment nor does it suffer from the possibility that funds available in the payor&#39;s account at the time the system checks have already been used before the funds can be transferred to the payee.  
         [0053]     The Set up of Contacts and Phases and of Users may include a level deeper than described above. Here, a phase description  65  would be that of a task  142  within a phase to be completed by a vendor  140  and a schedule of values  70  would be entered accordingly. The participants list  62  would include the vendor  140  and/or subcontractors. There would be a single approver  68  in this situation—the contractor for whom the vendor is providing materials/services. Upon completing the pay application form  122 , the vendor  140  would be required to complete a Lien Waiver Form  124 . Upon approval of the request by the approver/contractor  68 , the Fund Holder  24  would release the payment  121  to the system  10 , the system  10  would verify payment amount transferred, and system  10  would then forward the Lein Waiver  124  to the approver/contractor  68  and payment  121  to vendor  140 . This process negates the temptation by the Contractor to hold funds while at the same time expediting the completion of the transaction without necessitating separate completion steps or double signing by the Lein Waiver signor or the Funds Holder. Controlled by Security Zones  36  and the Phase Participants List  62 , the Vendor  140  would not have access to any parts of the system  10  other than the Phase and tasks  142  with which he has been linked and, then, only to request a payment  121 .  
         [0054]     Materials Stored  82   
         [0055]     The System  10  stores and displays information regarding materials providing means to balance and report stored materials levels  144 . Said means to balance and report comprises the following entry and calculated fields: Previous Materials Stored  150 , New Materials Stored  152 , Previously Stored Material Used  154  and Materials Presently Stored  156 . A user  42  on the participants list  62  on a phase  55  can enter changes to New Materials Stored  152 , and to Previously Stored Material Used  154 . These columns are displayed on the Schedule of Values  70  relative to each line item  73  on the schedule  70 . The Previous Material Stored  150  column shows the level of materials stored after processing the previous pay application and is a System-generated amount. Material Presently Stored  156  is a system calculated level showing the value of the materials stored past and present and for which payment has not yet been applied for. Total Completed and Stored  160  shows the value of materials obtained to date, both used and unused. In the preferred embodiment, means to balance and report stored materials levels  144  further comprises the requirement of uploading scanned document images  162  to the system  10  under the “Pay Application Support Documents” folder  164  in the Pay Application  122  tab prior to completion of a Pay Application  122 . The documents  162  required include a proof of purchase  166  and an insurance certificate  168  on the location where the materials are stored. Without uploaded document images  162 , the current Pay Application  122  including payment for materials will not be processed by the System  10 .  
         [0056]     Reporting  
         [0057]     The system links all Budget Fields together and adjusts to changes in real time. For example, if a Contract or Phase is finished underbudget, a field holding the actual project balance is effected as is a field holding the actual Contract or Phase budget. Another example of linked fields is illustrated when, at set up, an Administrator indicates which independent Phases or Contracts must be complete before a particular dependent Phase or Contract can be started. Any changes to the independent schedule is automatically used to update the schedule of the dependent. Such an update may be set to require approval by a specified entity and, upon such approval, the schedule change will be communicated to all affected entities by email or intra-system messaging.  
         [0000]     Management Features  
         [0058]     The combination of certain features in the Phase Set up, Schedule of Values and Pay application and means for automatically updating certain data fields in response to new entries in linked fields provides means for contract management. Means for contract management provides information on contract progress and cost, phase progress and cost, and change orders.