Turner Accelerated Payment Program
"The Turner Accelerated Payment Program is awesome! With quick and predictable payment, we don’t have to take on the risk that comes with borrowing to fund our materials costs.”
Bob Pollock
President, Continental Interiors
“The Turner Accelerated Payment Program has improved our cash flow tremendously! Receiving payment so quickly after submitting an invoice is very significant for our business, supporting our growth and continued success.”
Leigh Ann Barga
Controller, Delaware Glass & Mirror Co.
How the Turner Accelerated Payment Program Works
Any company that has been prequalified to work on Turner projects is eligible to participate in the program and participation is voluntary. The program generally functions as follows:
1. A trade partner enrolls (easy, one-click) in the Turner Accelerated Payment Program™ via our online payment application process.
2. Turner reviews the trade partner’s monthly invoice and submits it to the client.
3. Upon client approval of the invoice, Turner authorizes the accelerated payment to the trade partner prior to Turner receiving payment from the client. Retainage and other amounts, if any, can be withheld from an accelerated payment according to the trade partner’s agreement.
4. In consideration of the accelerated payment service, the trade partner pays a nominal fee, which is disclosed and agreed upon at the time of enrollment. The fee covers the interest expense, the cost of operating the payment financing facility, and the risks of delayed payment to Turner.
Frequently Asked Questions
Q: Why is Turner offering this program?A: It expands our service offerings and it increases the financial strength of our trade partners. Trade partners can use the accelerated payment to fund work in progress and use their working capital to enhance their business.
Q: How quickly will I be paid?
A: It is our expectation that trade partners will be paid within five days of pay application approval by the client.
Q: How does the program affect my existing asset-backed loans or other debt facilities?
A: The accelerated payment made to you in return for a fee is not a loan and is therefore not a debt.
Q: How is the fee determined and can it change during the project?
A: The fee matrix has been generated by our funding partner and is based on Turner’s payment terms with the owner. There is a set fee per project. This fee is set at the start of the project and is visible when you accept your invitation to the online payment application system.
Scenarios in which the fee might change include:
- Base rates (LIBOR is the benchmark in the US) could move up or down, for example in response to changes by the Fed in its Target Federal Funds Rate, which would affect interest costs for all borrowers.
- Investors’ view of Turner’s credit risk could change. That said, Turner’s credit rating has been stable for many years.
- Turner may revise the number of days used in the fee calculation to reflect the payment behavior of the client.
Q: Why might my fee be different from one Turner project to another?
A: A fee is unique to a project. Different projects may have different fees, based on Turner’s payment terms with the owner. However, the fee for a project is set for the duration of that project.
Q: What happens if, after I have been paid early via the program, the Owner is late in remitting payment to Turner?
A: Turner is absorbing the late payment risk, so there is no impact on the trade partners.
Q: Is the fee charged to enrolled trade partners, regardless of whether or not they meet all requirements to receive an accelerated payment?
A: No, the fee will only be charged if an accelerated payment is made.
Q: Will lien waivers, releases, etc. be handled differently if we use the program?
A: Lien waivers and releases will still be required prior to payment just as they are today. Early payment will not be made if there is a failure to fulfill all such conditions precedent by the time the client approves the invoice (you will receive a non-accelerated payment per the normal contract terms and the accelerated payment program fee will not be charged).
Q: Will retention payments be accelerated?
A: Once the release of retention has been approved by the client, then the retention payments will be processed through the Turner Accelerated Payment Program in the same way as any other invoice. The Turner Accelerated Payment Program will not accelerate retention payments ahead of client approval.
Q: Do I have to always use the program once I start?
A: You can un-enroll and re-enroll at any time, or use the program for select projects. However, we have offered the program with the expectation that trade partners will adopt and use it consistently on all their Turner projects.
Q: Do I have to sign an agreement with a financial institution?
A: No. You must simply accept the terms and conditions on the online payment application platform when you enroll in the program.
Q: Do I have to install any software or use a new technology platform?
A: The program is offered via the same payment application platform you use today.
Q: How will I know if an accelerated payment has been made?
A: You will be notified through our online payment application software when a payment has been made. The software will also track and store your previous payments.
Q: Who can I contact to find out more information?
A: Please email TurnerAPP@tcco.com for more information.