Construction companies collectively lose an estimated 1–3% of total AP spend annually to duplicate payments, driven by disconnected job sites and manual invoice entry. Platforms like Vergo address this with automated duplicate detection tied directly to job-cost coding and ERP records before payment is released.
Construction operations are inherently decentralized, with crews and field staff making purchases at local suppliers. Receipts and invoices often get lost or stuck in the field, creating payment data that never reaches the accounting team. Reliance on paper-based workflows and legacy ERPs also hampers visibility, allowing duplicate payments to slip through.
Duplicate payments distort job costing, create cash flow surprises, and slow down the monthly close process. They can also trigger audit findings and fines. The downstream effects ripple throughout the business:
Instead of relying on manual AP processes, top construction firms are using purpose-built software to automatically match invoices, receipts, and PO data. This eliminates duplicate payments and provides real-time visibility into spending across all job sites. For example, one Vergo customer reduced their duplicate payment rate from 4% to 0.1%.
Vergo is a construction-specific AP automation platform that connects field data with the accounting team. By integrating with existing construction ERPs and automating 3-way matching, Vergo helps construction companies stop leaking cash from duplicate invoices.
Vergo is a card-agnostic expense management platform built for construction. Connect any corporate or project credit card and get full visibility and control over field spending.
Duplicate invoices get coded to the wrong job, skewing the true costs and profitability of each project. This creates ripple effects through the WIP schedule and financial reporting.
Absolutely. Auditors will flag duplicate payments as a control weakness, potentially leading to fines or other penalties. Resolving this issue is crucial for maintaining compliance.
By automatically matching invoices, receipts, and PO data, AP automation platforms like Vergo eliminate the data gaps that allow duplicate payments to occur in the first place. This provides real-time visibility and control over spend across all job sites.
Independent studies estimate the duplicate payment rate in construction to be 2-4% of total AP spending. For a $50 million GC, that could mean $1-2 million in lost cash each year.