Working with a fintechs firm, the real-estate firm is embarking on 20 other digital projects over the next two years.
These days, procurement and payments workflow processes for real-estate development projects are still paper-based and labor-intensive, resulting in workflows that are time-consuming, and updates to project cash flows that are done manually.
In Singapore, to streamline the procurement and payments workflow processes for such projects, and to develop and pilot the built-environment industry’s first end-to-end digital workflow solution, three firms have struck a strategic digitalization partnership.
GuocoLand Limited (GuocoLand), Oversea-Chinese Banking Corporation Limited (OCBC Bank) and fintech firm Doxa have signed a Memorandum of Understanding (MOU) to develop a platform that connects property developers and other parties (banks, contractors, suppliers and consultants) in the built-environment value chain.
This solution, called Doxa Connex for Developers will be ready in October 2021 and its first use will be supporting one of GuocoLand’s luxury freehold condominium projects by year-end. OCBC Bank is the sole lender for the project and is one of GuocoLand’s principal banks.
Towards more transparency, efficiency
The platform also offers a service to convert quotations into purchase orders and generate cost analysis reports, thereby allowing developers to gain a timelier overview of their cash flow. Via workflow automation, the platform keeps track of large amounts of data to provide clearer project visibility and full transparency in the procurement and payments workflow processes. Contractors can expect easier and faster submission of claims for payment with the implementation. Time is saved as there will not be any need to courier hard-copy documents, and the chances of documents getting lost are eliminated.
According to Guocoland Singapore’s Chief Financial Officer Andrew Chew: “Digitalizing the procurement and payments workflow processes in the built environment value chain is a needed step in the right direction to transform the industry. Doxa Connex for Developers will automate workflow processes and pave the way for a more efficient, transparent platform for future developments. This digital innovation, developed in collaboration with OCBC and Doxa, will prove to be a game-changer and also future-proof the parties in the value chain from disruptive events such as the COVID-19 pandemic.”
This MOU and pilot project is part of GuocoLand’s latest digitalization drive involving up to 20 digital-related strategic partnerships with local tech firms over the next two years.
Doxa’s co-founder and Managing Director Edmund Ng said: “(The platform) will help (real estate developers) to overcome the many challenges in procurement and payments workflow processes. When (our earlier) supplier payment solution helped to digitalize the procurement process from main contractors to sub-contractors and their suppliers, we saw an opportunity to move upstream and connect developers seamlessly to this process as well. The success of this pilot will see exponential cost and time savings, and an increase in visibility and productivity across all stakeholders, as they will be all digitally connected in a single space.”