The BidaFi ABC’s = “Auto Bid Chain”.
The “Auto Bid Chain” carries the manufacturers’ specification to the supplier, through to the contractor and they are populated into the Homeowners contract. This ensures that the proper materials are delivered to the project; thus, protecting the homeowner and saving the contractor time and money.
This process starts with manufacturers. Manufactures have developed their product line in most cases over decades of research and development and rising to meet changing industry demands. Each product is designed around how it looks and how it performs in a given environment, this is “Form and Function”. The manufacturer wants their product to perform at its highest potential and to be as visually pleasing as possible. This is why the manufacture writes what are called “Specifications”. Specifications or “Specs” are the requirements that the manufacture places on the installer to achieve the optimum outcome. This is basically an installation process for their material or product. The manufacturers almost never sell directly to homeowners and for the most part don’t know who has received their product and or how it was installed.
Most manufacturers in the building industry offer classes to train installers/contractors on how to properly install their products according to their specifications. When this installation process is achieved correctly the manufacturer will stand behind their product and usually issue some type of warranty. When it is not achieved this can open up an unlimited number of issues, none of which are in the homeowner’s best interest.
BidaFi can now track this process and has a record of what was delivered to the project in order to help ensure that the homeowner gets exactly what they are paying for and qualify for the warranty they are entitled too. This also ensures that the products needed for the project meets the manufacturers specs. This has huge benefits to the contactor, supplier and the manufacture as they all now have a record of what material was installed.
So why do contractors not stick to the specs? Again, there are an unlimited number of reasons, the main reasons being they didn’t know or care to know and or they simply wanted to go with a component that was easier to install or it was less costly. This never helps the homeowner. The homeowners’ expectations of the product are now different than what they have and what they thought they paid for.
The contractor in almost all cases purchases their products from an” Industrial Supplier”. These are suppliers that supply mainly to contractors and not directly to homeowners. Every trade has an industry supplier: electrical, plumbing, roofing, landscaping, flooring, solar, HVAC, painting, lumber, etc. These suppliers are not responsible for maintaining the manufacturers specs, as they are not installing anything. They will be happy to sell whatever is ordered to the contractor. These suppliers usually carry several brands of products at all different qualities.
Contractors usually have a number of options when it comes to selecting suppliers and not all contractors have relationships with all the trade suppliers in their area. Not all suppliers carry every product line so if a contractor does not have a relationship and or an open account with a supplier, they are limited to the product line where they have accounts that are open and active.
The BidaFi platform allows contractors to deal with any suppliers on our platform as the suppliers are paid COD (cash on delivery) so there is no need to have a credit account. Net 30-day accounts are accounts that suppliers give to qualified contractors to pay their bill in 30 days. This behavior started back when everything was processed by hand and through the mail… remember those days? Those days are gone!
Now with the BidaFi platform when the contractor requests a draw or a payment from the homeowner a portion goes directly to the supplier to instantly pay for the materials. This creates a number of benefits for the contractor and the supplier and there is no more need for 30-day accounts. This allows contractors to deal with all the suppliers on the BidaFi platform and levels the playing field to compete with any size contactor.
In architecture we would include the manufactures specs into the drawings so as to ensure that the contractor was bidding on the correct material and processes. In every case the spec writer would get the specs directly from the manufacturer. Once the entire architectural drawings were completed, we would give a large set of contract drawing to a number of selected contractors capable of building the project and they would submit their bids a few weeks later. This is basically what BidaFi is doing for homeowners… only it’s automated and done in minutes. It’s like having an architect write the specs for your project and then having the contractor bid on it.
BidaFi has taken a process that typically takes days or even weeks and reduced it to mere minutes. This allows the homeowner to compare and contrast multiple contractors’ bids and preliminary contracts prior to ever contacting the contractor for a meeting. This saves a tremendous amount of time for the homeowner and the contractor. Once the homeowner signs the contract with the spec written into it a purchase order is generated and sent to the supplier. This eliminates the risk of having the contactor order the wrong product!
Today when products are shipped to a homeowner from the supplier on the contractors open account the supplier sends that homeowner a “preliminary lien notice”. This creates a lot of work for the supplier and is scary for most homeowners. If the contractor never pays the bill to the supplier the homeowner is legally responsible for the bill even if they paid the contractor already. This can be a painful process that is eliminated through the BidaFi platform banking arrangements. This also creates a big savings to the supplier and we ask them to pass this savings onto the contractor which allows them ultimately to be more competitive.
We have recently registered BidaFi, Inc. with the Securities Exchange Commission and we are currently running our initial crowdfunding campaign so anyone is free to participate with us.