CONSTRUCTION TECHNOLOGY TRENDS


Construction Cost Management: The Quiet Evolution


By Kaitlin Rapp, Procore


construction cost management. Construction is not new to


T


technology. Years of siloed and point solutions have been introduced to the industry. Today, solutions tend to concentrate on project (and cross-portfolio) standardization, the single-source of truth, drawings, and document management. In the “Rise of the Platform Era: Te Next Chapter in Construction Technology,” McKinsey highlights the technology advancement in nearly every area of construction – with the exception of financials. Tat first seismic shift of digitizing


project management effectively prepared the ground for this second wave: cost management. Linking project management workflows to real-time cost management will connect the office accounting team with the project field teams – resulting in digitally precise, collaborative, data-driven practices that promise a new era of true project control and clarity.


Control Wanted: Construction’s Unstable Environment


Construction’s current environment


faces new challenges. Between an unsteady economy from COVID-19, volatile material costs, a skilled labor shortage, the departure of retiring baby boomers, climate change, and the pending exodus of rural populations into urban centers that have yet to be built, construction has much critical planning and execution ahead. A new approach to cost


management will enable powerful analytics and advanced forecasts informed by automated processes and analyzed by construction-trained AI. www.AGC-CA.org


oday, construction is in the midst of a change in a space that technology has yet to transform –


Te smart-device mobility in the field will unlock real-time inputs and effects on the bottom line. Spreadsheets and enterprise resource planning software were designed for people in the office, not for those in the field where minute- by-minute costs are incurred. Teams can no longer afford to operate from outdated spreadsheets and reports that capture a snapshot of historical project performance. It’s time to redefine expectations around cost management solutions.


Advanced Cost Controls, Real- Time Insights, and the Joy of Knowing


Te new era of cost management


is about reliable, real-time insights. Procore’s construction management platform contains, organizes, brokers, and aggregates project data throughout the construction process – constantly storing project details that yield insights in real time.


Cost Management — Connected and Collaborative


Te nature of a digital construction


management platform is to connect every project stakeholder in a collab- orative space where tiered project data flows unimpeded. Tis makes all cost data synchronously available to both field and office, allowing for dynamic tracking of costs and smarter decision making. Boston Children’s Hospital realized


the inefficiencies of managing siloed systems early on and decided they needed a project management platform that could help their team standardize processes across the project to mitigate costly inefficiencies. Tat platform acted as a hub, gathering teams into a connected, collaborative space into which cost data continually flowed across the project – improving their


ability to be proactive and mitigate risk. Connected collaboration is the way forward with construction financials.


Job Costing — The Final Frontier A recent survey of 1,800 owners,


general contractors, and specialty contractors asked these three project roles what they saw as critical for the construction industry to solve through technology. Te number-one response from all three was “budget and job costing.” It appears that taking control of costs in 2021 is top of mind for the industry. Manual processes and discon- nected solutions turn minor missteps into long, costly mistakes. Going forward, the systems you use to manage costs, need to connect to the systems you use to manage scope and schedule. Without this connectivity, compre- hensive real-time insights are impossible. So it comes down to joining this


“second transformative wave.” At Procore’s Cost Management Summit, Principal at Deloitte, Steve Means, shared that their data is showing that “the companies who have invested in automating, connecting, and digitizing their cost management practices are more competitive, are holding or improving their margins, and are deliv- ering projects on time.” Te businesses and teams who advance their cost management processes in 2021 will take an early lead and thrive. It’s an exciting time for construction


technology and Procore – we are moving forward with our mission of connecting everyone on a global platform, and that means disrupting the ever-challenging landscape of construction financials. To learn more about the future of


construction financials, visit Procore’s Financial Resource Page (www.procore. com.) n


Associated General Contractors of California 19


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24