Managing accounts payable (AP) in the construction industry is anything but straightforward. Complex job costing, multi-tier supplier networks, and strict documentation requirements are just a few of the moving pieces involved. That’s why choosing the right AP automation solution is both a technology decision as well as a strategic one.
AP automation streamlines the entire accounts payable process—from invoice capture to payment and reconciliation. It reduces manual tasks, improves accuracy, and increases visibility across workflows. The result is a faster, more consistent AP process that saves time and supports smarter financial decisions.
As more construction companies explore AP automation, one key choice emerges for businesses: purpose-built vs. agnostic solutions.
While this guide is just a research tool, it can help you understand the difference and learn which solution is right for your business—which can save you time, reduce costs, and help you operate with greater accuracy and control.
What’s the Difference Between Purpose-Built and Agnostic?
Agnostic AP Automation
An agnostic solution is designed to work across industries and with a variety of ERP systems. These platforms focus on flexibility and adaptability, making them solid options for businesses operating in hybrid environments or preparing for growth or transition.
What makes them different:
- ERP-flexible with broad integration capabilities.
- Not tied to a single industry or software ecosystem.
- Easily scalable as business needs change.
Purpose-Built AP Automation
A purpose-built AP automation solution is designed specifically for one industry—in this case, construction. These platforms are tailored to the workflows, compliance standards, and accounting processes unique to the industry. They bring all the benefits of agnostic solutions while adding extra functionality tailored to the industry it’s being built for.
What makes them different:
- Pre-configured for construction-specific needs.
- Includes built-in features for lien waivers, retention, and job costing.
- Deep integration with construction-specific ERPs like Sage 300 CRE, Sage Intacct, Foundation Software, and more.
Why This Technology Matters in Construction
Construction companies face unique challenges that make AP automation more complex than in other industries. Here’s why choosing the right architecture—purpose-built or agnostic—can make or break your implementation.
Complex Job Costing and Project Management
Every dollar must be traced to the right job, phase, and cost code. That requires systems that can handle multiple simultaneous projects, each with its own invoice flow and approval hierarchy.
Subcontractor and Supplier Networks
Managing high volumes of invoices from various vendors and subcontractors across different jobs requires precise coordination. Delays or errors can halt projects or result in missed discounts.
Strict Compliance and Documentation
Construction AP teams must manage lien waivers, retention payments, insurance certificates, and regulatory compliance—often under tight deadlines and with legal implications.
Key Benefits of Purpose-Built Solutions: Made for Construction
Tailored Invoice Processing
Construction invoices often contain line items tied to different cost codes, job numbers, and phases. Purpose-built solutions can handle this complexity out of the box, using OCR and AI to automatically map each line item accurately.
Integrated Lien Waiver Management
These solutions can automatically generate, send, and track lien waivers, ensuring documentation is collected and stored without manual follow-ups.
Retention Handling
Retention payments are a critical part of construction accounting. Purpose-built systems support retainage tracking and payment release workflows that meet project-specific timelines.
Pre-Configured Workflows
Approval workflows are already aligned with how construction teams operate, from field to back office. That connection reduces the need for heavy customization.
Deep ERP Integrations
Purpose-built platforms connect directly with industry-standard ERPs like Sage 300 CRE, Sage Intacct, and Sage 100 Contractor, Viewpoint Vista, CMiC, and Foundation Software. Those integrations help teams avoid data silos and duplicate entries.
When It’s the Right Fit:
- You’re standardized on a construction-specific ERP.
- You manage multiple complex projects with job costing requirements.
- Your team needs built-in compliance tools like lien waiver and retention tracking.
- You prefer a faster implementation and want to follow best practices from day one.
Key Benefits of Agnostic Solutions: Built for Flexibility
Platform Flexibility
Agnostic solutions integrate with a wide variety of ERPs—both construction-specific and generalized—like Procore, Deltek, Sage Intacct, NetSuite, and QuickBooks.
Easier Transitions
If you plan to change ERPs, agnostic solutions offer continuity. Your AP automation system doesn’t need to change when your ERP does.
Customization and Control
Since they aren’t pre-configured for a single industry, agnostic platforms are adaptable. This makes them ideal for businesses with unique needs or evolving operations.
When It’s the Right Fit:
- You’re operating in a multi-ERP environment.
- You’re planning future technology transitions or upgrades.
- You want to avoid vendor lock-in.
- You have strong IT resources to configure workflows.
- Your projects are not complex enough to invest in a custom solution.
Decision Framework for Construction Companies
Here’s a side-by-side comparison to help guide your choice:
| Factor | Purpose-Built | Agnostic |
|---|---|---|
| ERP Environment | Implementation Speed | Multi-platform or changing |
| Implementation Speed | Faster, with pre-set workflows | May require more custom setup |
| Invoice Complexity | Handles construction-specific formats | Requires configuration for unique formats |
| Compliance Features | Built-in for lien waivers, retention, audits | May need to be configured |
| Field Team Access | Often includes mobile functionality | Varies by provider |
| Growth & Scalability | Strong within current ERP ecosystem | Highly scalable and adaptable |
| IT Resource Requirements | Lower setup effort | More flexibility, more configuration |
| Cost of ERP Migration | Higher—often requires new AP system | Lower—solution can adapt |
How to Decide Which Architecture Is Right for You
The right AP automation solution for your construction company depends on how you’re set up today and where you’re heading.
A purpose-built solution brings all the benefits of an agnostic solution with added benefits, while agnostic solutions struggle with the limitations of not being specialized. So how do you decide which is right for your business?
You should consider an agnostic solution if:
- You have multiple systems or are planning an ERP transition.
- You want the flexibility that comes with a catch-all solution.
- You need to integrate AP with several platforms across departments.
You should consider a purpose-built solution if:
- You want all the benefits of agnostic solutions listed above
- You’re using a construction-specific ERP and don’t plan to change.
- You need out-of-the-box features like lien waiver management.
- You want a faster path to implementation with proven construction workflows.
Make a Decision to Build Long-Term Value
Both solutions have their upsides, but the right choice ultimately depends on your current systems, project complexity, compliance needs, and future growth plans. A purpose-built solution can provide immediate alignment with construction-specific workflows and compliance requirements. An agnostic solution offers flexibility and adaptability across platforms and teams.
As construction projects become more complex and the technology involved continues to evolve, the systems you choose today need to support where you’re headed tomorrow. Take the time to evaluate your environment, engage your stakeholders, and make a decision that supports your team.
The right AP automation solution frees up your time, improves visibility, and empowers your teams to focus on what really matters—building great projects.