The construction industry is rapidly transforming. Perhaps the most crucial pieces of this transformation for Owners to take control of are the changes we are seeing in financials, risk management, and interconnected data, as these will drive the industry forward. With Procore’s Financial Management and Construction Intelligence solutions, owners can control every step of the project lifecycle.
Recently, Procore’s Head of Product Tiffany LaBruno discussed current and upcoming Procore Financials and Analytics enhancements with Tim Allsopp, Director of Construction at Seasons Retirement Communities in Ontario, Canada.
Procore’s Construction Intelligence Gives Owners a Comprehensive Analysis
One topic under discussion was Construction Intelligence. Procore Analytics provides stakeholders and executives with the reports they need to manage risk and optimize capital project governance and delivery. With real-time financial performance monitoring, Owners can easily see which projects are over budget or off schedule and take action to mitigate risks or get projects back on track.
Additionally, Owners can use historical job information to plan better. LaBruno shared how Owners can use analytics to compare the health of projects in the same geographic region and of a similar scope against company KPIs. Owners can also use historical data to benchmark costs, leading to more accurate estimates for future projects.
LaBruno spoke about other exciting ways Owners can leverage Construction Intelligence. Suppose a vendor is behind on delivery for a project, in that case, the Owner can use Procore Analytics to pull up a commitment summary for that vendor and look at all of the projects the vendor is working on across the Owner’s portfolio. This lets the Owner determine their total exposure and which projects are affected — without manually aggregating data from multiple sources.
LaBruno shared that beyond Procore Analytics, Procore’s Enhanced Reporting services end users by allowing all users to quickly create reports that improve project delivery, mitigate risk for their particular scope, and drive savings for their program.
With information comes power, Procore gives Owners that power through reporting and insights that provide a clear picture of all the potential gains and risks that may occur across their portfolio. But beyond reporting on risk, what about managing it?
Procore Financials Management Helps Mitigate Risk
Financial risk management is essential for any successful project. For example, change orders are common in construction and can significantly impact the project budget and timeline.
One thing Owners need to monitor if they want to proactively manage risk is what change might occur. The Change Events tool in Procore’s Financials Management solution acts as a risk radar, giving owners the ability to detect potential changes and manage them effectively. This tool allows Owners to see and identify speed bumps (like a potential change order coming) before they drive over them, saving valuable time, money, and effort in the long run.
And when change inevitably does come? Once actual change orders are created, that’s where Procore’s Approval Workflows really shine. Workflows give Owners enhanced, comprehensive financial control over each and every project. This feature lets Owners set cost thresholds and add critical layers of oversight and approval, ensuring that all the right stakeholders are engaged in Change Order reviews and approvals as quickly as possible.
Procore Turns Security and Efficiency Into Savings
Procore’s Approval Workflows can also be applied to its Invoice Tool, providing Owners with even more sophisticated financial control.
“For us, the Approval Workflow is one of those recent releases that’s been key to our financial success, certainly as we use the Invoicing tool in Procore,” says Allsopp. “By putting those automated processes that you see in place for who needs to approve a Change Order or an Invoice, we’ve not only gained efficiencies in what is normally a cumbersome process, but we’ve also put more guardrails in place to mitigate any financial risk.”
Procore’s Workflows also help Owners and vendors improve relationships and thus achieve cost savings. Allsopp also mentions how it’s helped build relationships with contracted vendors because “they can trust us that they’re going to get paid quickly.”
Getting money into the proper accounts can be easier and faster with Procore, improving relationships across the board.