eBook

Uncover the Hidden Cost of Project Silos

Real Time Accounting to Keep Your Projects in the Black
eBook Uncover the Hidden Cost of Project Silos

HOW MUCH IS INFORMATION MANAGEMENT COSTING YOU?

How much of your company’s overhead costs are spent on information management?
Construction firms have traditionally relied upon administrators and office personnel
to capture, organize, and store data, as well as use that data to create a seemingly
endless array of documents and reports. These tasks are expensive to companies,
even when all is going well. And in reality, despite everyone’s best efforts, inaccuracies
inevitably creep in and become amplified as they travel through the system.

In addition to expenses related to office staffing, inefficient information transmission

in the field can result in lost profits. Cost, payroll, and schedule data are difficult to
capture on paper during the fast pace of a typical day on the job site.

Significant efficiency gains have been realized as project management and related
administrative tasks move to computerized platforms, facilitating a more immediate
and frictionless transfer of information. For the most part, platforms arose as a natural
outgrowth of existing knowledge silos,­that is, scheduling software was developed
for schedulers, estimating software was developed for estimators, and accounting
software was developed for accountants. Existing departments within your company
have probably been using software programs to simplify their daily routine for years now.

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 eBook Uncover the Hidden Cost of Project Silos

The next step, is to improve knowledge

transfer between silos as well as
between the field and office. Gradually,
a greater number of team members
are gaining access to a greater amount
of information—and getting it the
moment they need it—reducing costly
delays and miscommunications. Project
management software is becoming the
answer to dealing with RFIs, change
orders, and document control. But what
about up-to-date cost, estimate, and
payroll data?

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eBook Uncover the Hidden Cost of Project Silos

YOU MAY BE THINKING, “THAT’S

REALLY NOT PART OF MY JOB…”
Hundreds of individual data categories
feed into project management,
dramatically influencing a project’s overall
productivity and outcomes. Matters
ranging from contractor compliance to
employee time collection can be handled
more effectively in the field, in real time.
Rather than filling out paperwork and
having it processed later by support staff.
Real time, accurate cost data gives project
managers control over project budgets,
allowing them to accurately forecast
project costs, and provides them with
better insight into the financial impact of
a project.

Remember, too: the construction phase

of a project is not the time for creative
planning. While much value-engineering
3
and cost savings can be accomplished
during a project’s pre-construction stage,
once construction is underway, the goal
is to adhere as closely as possible to
the schedule and already established
design details—because any deviation
has the potential to cause delays. And
unfortunately, late-stage changes and
miscommunications tend to have a
domino effect.

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 eBook Uncover the Hidden Cost of Project Silos

It is best, therefore, if real time tracking and data input, facilitated now by user-friendly
software and mobile devices, is leveraged to promote adherence to drawings and to
the construction schedule, as well as enable quick course correction when things do go
wrong. You no longer have to bug accounting or wait until the once-a-month forecasting
effort to glean project insights. You get them every time you log into your software,
without the need to manually aggregate separate data sources to see the full picture.

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eBook Uncover the Hidden Cost of Project Silos

HOW DO I GET STARTED WITH NEWER TECHNOLOGY?

Some of the biggest benefits of using management and accounting software are
automatic byproducts of the systems—no extended training required.

• Email chains are automatically preserved and filed, keeping a paper trail at your
fingertips.
• Routing and approvals are expedited throughout your organization, improving
turnaround time and reducing miscommunication.
• Perhaps the most significant factor is that when you can see numbers in real time,
it is easy to instantly form a comprehensive sense of a job’s status. Some potential
problems can be staved off completely just by having information before it is even
realized it’s needed.

Modern software solutions have straightforward user interfaces that are simple to use
and understand. Much of a job’s commonly required information—from an employee’s
vacation time used to the percent of job completion—can be viewed on the screen in
seconds just by using interactive inquiry tools. The small learning curve necessary to
adopt new software is offset by immediate payoffs. Value is quickly apparent even in
the field, where workers appreciate the convenience and control of completing forms
and paperwork (including submitting timecards) from their phone or tablet.

Most data entries carry across the entire system, too. Cloud-based, collaborative
software-as-a-service (SaaS), keeps documents current with real time updates, while
still allowing for off-line work when necessary.

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 eBook Uncover the Hidden Cost of Project Silos

HOW DO I CHOOSE A SOFTWARE

PLATFORM?
When choosing a software package or
service, look for one that allows flexibility
in various categories.

For example, if you handle many large

jobs, the job cost module of your
software should provide room for
expansion beyond basic job and cost
codes. It should accommodate a complex
structure with multi-tiered jobs and cost
codes, as well as flexibility in the codes’
nomenclature. It should also be able to
break down job cost data into a variety
of information subsets.

The software’s payroll module should

have similar flexibility. Your job site will
have employees representing multiple
pay rates, multiple unions, etc., so there
should not be limitations on the variety
of information you can input.

Reporting is also of key importance.

Make sure your software gives you the
6 ability to design and customize reports
so that they pull from the data sets
that you have specified. Monitoring and
analyzing this data is crucial to stopping
bottlenecks and promoting your
company’s growth.

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eBook Uncover the Hidden Cost of Project Silos

WHAT ARE THE BENEFITS?

Greater efficiency in labor tracking and the payroll process
improves accuracy and reduces overhead for the company.
It is possible to collect union dues, track overtime, get time
approval, and produce certified payroll reports without
manually entering the information in a separate software
program or having to collect and process paper documents.
The payroll data can, in turn, populate other databases,
such as tax or federal forms. Administrative tasks such as
direct deposit and address changes are also simplified.

The tracking of subcontractor contracts and payments are

improved and aggregated into a single location making it
easy to see details such as invoiced amounts exceeding
commitment amounts.

Subcontractor and vendor compliance issues are

easily managed. Having immediate access to forms
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and paperwork allows for tracking and automation of
compliance status on insurance, lien waivers, etc. In
addition, timely email notifications of non-compliance
enable swift action, such as blocking payment.

Maintaining a single, up-to-date repository of project data

across multiple platforms in real time prevents errors and
duplication, and thus, rework and delays.

Easy access to cost information can alert personnel

to possible problem areas. For example, costs that are
unexpected or don’t match the original estimate may be a
red flag for a systemic problem. When personnel are able
to easily compare related data, these issues can be spotted
early on.
 eBook Uncover the Hidden Cost of Project Silos

. . . WHAT ARE THE BENEFITS?

With cost codes being matched to the project estimate,
legitimate unplanned charges can be identified and costs
recuperated. Similarly, having change requests matched
with completed change orders facilitates accurate job cost
accounting.

Improving database accuracy by capturing data points as

a project progresses enhances a company’s performance
on future tasks as diverse as forecasting and estimating to
equipment maintenance and replacement.

Expediting communications, routings, reviews, and

approvals—thereby improving response time across the
board—is one of the best ways to control a project’s
schedule and associated costs.

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eBook Uncover the Hidden Cost of Project Silos

TRADE-OFFS HAVE BEEN

ELIMINATED
Before collaborative software, there were
real trade-offs involved in taking the time
to manually update multiple separate
reports. There were also trade-offs
involved in taking the time to track down
just the right folder or form to update a
single fact or figure. The time lost when
making such tiny updates to the system

“
could easily outweigh any benefits of
doing so. Nevertheless, often those
small omissions lead to significant work
stoppages or add up to cause greater
losses when considering the unreported
data points individually.

Now those trade-offs have vanished.

Real time data is expediting information
sharing for project management­­—
improving accuracy, while at the same
time keeping projects moving forward.
Real time data is In fact, aggregating and interpreting
financial data, along with other types
expediting information of project information, is an essential
component of project management.
sharing for project 9

management,
improving accuracy,
while at the same
time keeping projects
moving forward.
 eBook Uncover the Hidden Cost of Project Silos

Historically, mistakes, inaccuracies, and rework have exacted heavy tolls in terms of
10 job performance and profitability. In today’s economic climate, that can mean the
difference between success and failure. By reducing the administrative burden of
routine tasks, integrated systems free up your company’s resources and allow you to
handle a significantly higher work volume. Your company becomes a leaner operation
while at the same time becoming more profitable.
 eBook Uncover the Hidden Cost of Project Silos

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PRODUCED BY
Procore Technologies, Inc.

Procore Technologies, Inc., the

world’s number one most widely used
construction management software,
helps firms drastically increase project
efficiency and accountability by
streamlining and mobilizing project
communication and documentation.
Hundreds of thousands of registered
Procore users manage all types of
construction projects including industrial
plants, office buildings, apartment
complexes, university facilities, retail
centers, and more.

For more information about Procore

Technologies, or for a free online demo,
visit http://www.procore.com.

Schedule a Demo

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