Table of Contents
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For Head ContractorsThis user guide provides head contractors with information about how to use Procore's Project Financials tools to streamline your financial business processes across your project's lifecycles. Some of the things you'll learn in this guide include: |
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The first step when setting up Procore's Project Financials tools in a Procore project is to create your company's Work Breakdown Structure. You also have the option to create a unique project level WBS.
Procore's default Work Breakdown Structure includes two (2) default segments: cost code and cost type. It also includes an optional sub job segment that lets you add sub jobs to a project. Segments are the building blocks that define your company's budget code structure. To learn more about segments, see What are segments and segment items?
Many companies design their budget code structure to align with the CSI MasterFormat. Other companies decide to implement a budget code structure that is unique to their industry, organisation or project environment. Regardless of the structure, you can perform your own imports using the Procore Imports app. You can also Request to Import Segment Items for WBS.
To learn more about WBS, see the Work Breakdown Structure landing page. We recommend reading About Work Breakdown Structure and reviewing the steps in Create Your Company's Default Work Breakdown Structure and Create Your Project's Work Breakdown Structure with your team.
Procore's Budget tool helps your project team efficiently manage your project's budget. It is designed to help your team make informed financial decisions, track expenses against your budget in real-time, analyse historical snapshots, input detailed forecasts and offers deeper visibility into the financial status of your project.
To learn what else you can do with the Budget tool, see Budget.
After setting up the Budget tool, you can begin creating one or multiple head contracts for your project. With the Head Contracts tool, your team can replace stacks of paper and expensive printer costs with a central location for digital contract management.
To learn what else you can do with the Head Contracts tool, see Head Contracts.
After your contract(s) are approved and completed in the Head Contracts tool, you can begin setting up your project's financial commitments. In Procore, you can create two types of 'commitments': subcontracts and purchase orders.
To learn what else you can do with the Commitments tool, see Commitments.
Next, start learning about Procore's change management tools. There are two options for setting up these tools: (1) Enable the Variations and Change Events tools or, (2) Enable only the Variations tool.
Change events are created for anything on a project that looks like it may create an additional cost. Creating a change event allows you to prepare for the cost of a change before it becomes an actual cost. After creating a change event, you can then create an RFQ (Request for Quote), which is sent to the appropriate subcontractors for pricing. When RFQs are created and responded to by the assigned subcontractors, variations can then be created based upon the submitted quote.
To learn what else you can do with the Change Events tool, see Change Events.
If your team decides not to enable the Change Events tool, you can still use the Variations tool to account for additional costs. For most Procore customers, this change management workflow starts off by creating a Potential Variation.
To learn what else you can do with the Variations tool, see Variations
Procore's Invoicing tool uses the user permission granted in the Commitments and Head Contracts tool. As your project progresses and the contracts have been created and approved, subcontractors can bill you for completed work via subcontractor progress claims. You can also create head contract progress claim, which can then be emailed to the owner or the party that is being requested for payment.
To learn what else you can do with the Invoicing tool, see Invoicing.
In Procore, the term direct cost is used to refer to a cost on a construction project that is NOT associated with a commitment. Using the Direct Costs tool, you can create these items:
To learn how to create a direct cost, see Create a Direct Cost.
To learn what else you can do with the Direct Costs tool, see Direct Costs