Table of Contents
For Speciality ContractorsThis user guide provides speciality contractors with information about how to use Procore's Project Financials tools to streamline your financial business processes across your project's lifecycle. 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 Procore is to verify that your company and project is set up with a budget code structure that works for your specific business. In Procore's Work Breakdown Structure, budget codes are the basic building block for the financial line items on your budget. Through the use of budget codes, you can create a budget that is granular or as basic as you need.
If you are a speciality contractor, Procore recommends the following:
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 offer deeper visibility into the financial status of your project. With the use of budget codes, you can create a budget as granular or as basic as you need.
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 client contracts for your project. With the Client Contracts tool, your team can replace stacks of paper and expensive printer costs with a central location for digital contract management.
Does your construction project have multiple funding sources or progress billing requirements? Learn why some speciality contractors decide to create multiple client contracts on their Procore project. This is helpful when you have a need to divide the scope of work on a project into multiple phases or stages, however, doing so does present a few considerations. For more information, see Are there any system limitations when projects have multiple client contracts?
An alternate way to manage these types of requirements is to use the Sub Job feature. To learn more, see What's the difference between a job, a parent job and a sub job?
To learn what else you can do with the Client Contracts tool, see Client Contracts.
After your contract(s) are approved and completed in the Client Contracts tool, you can begin setting up your project's commitments. Typically, you will create commitments when your company is subcontracting out work.
In Procore, you can create two types of 'commitments': subcontracts and purchase orders.
In Procore, purchase orders and subcontracts are used exclusively to bill for pre-determined costs recorded in your project's budget. It's important to note that purchase orders are not designed to be used as a running tab. For example, if your company's practice is to create a progress claim to pay for your purchase orders as items are delivered, you would want to create a direct cost instead of a purchase order. See Direct Costs Tool.
To learn what else you can do with the Commitments tool, see Commitments.
Next, start learning about Procore's change management tools. You can create two types of variations in Procore. There are two options for setting up these tools: (1) Variations with Change Events or, (2) Variations without Change Events.
Creating a change event allows you to prepare for the impact of the change before it becomes an actual cost - which is an important part of a speciality contractor's contract management strategy when hiring outside subcontractors to perform tasks.
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.
When the Change Events tool is disabled, your team will create changes using the Commitments and Client Contracts tools. Most variations start with a potential variation which would be generated in the Client Contracts tool. Below is a description of the process when all three (3) tiers are enabled for client contract variations.
To learn what else you can do with the Variations tool, see Variations.
Procore's Progress Billings tool uses the user permission granted in the Commitments and Client 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 responsible for payment approval.
Manage Billing Periods. If you subcontract out work, the billing period defines the billing cycle that is used for progress billing applied to your project's subcontractors. In addition to defining the frequency of the billing period (for example, monthly or weekly), it also defines the billing period's start date, the progress claim's due date and the billing period's end date. To learn how to create a billing period with the Progress Billing tool, see Create Manual Billing Periods and Create Automatic Billing Periods.
Create and Manage Progress Billing. With the Progress Billings tool, you can keep user permissions restricted to your project team and Create a Progress Claim on Behalf of a Progress Claim Contact or you can provide your subcontractor's progress claim contacts with the appropriate permissions to access their purchase orders and subcontracts. See Add Progress Claim Contacts to a Purchase Order or Subcontract. Then, when you are ready for your subcontractors to bill you for their work, you can Send an 'Invite to Bill' to a Progress Claim Contact and your subcontractors can then Submit a New Progress Claim as a Progress Claim Contact. You can then review and approve these billings.
To learn what else you can do with the Invoicing tool, see Progress Billings.
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