Topic Thread

1.  Procore Budget

Posted 12 days ago
​Our initial budget is in Procore and is the estimate developed by Sales.  During execution, expenses are incurred for cost codes not budgeted.  PM's say what's up?  We say just because it wasn't in the budget doesn't mean it's not correctly posted.  You can do budget revisions in Procore to better distribute the budget.  The bigger point is, how do we communicate where costs go to aid Sales in developing bid and PM interpret and manage their budgets.  Does anybody regularly train to this or discuss/communicate in some other fashion?  PS it's not like we determine which cost code to use, the source is generally a PO, subcontract, expense report, timesheet, etc.  Thank you!!

------------------------------
Peter Gauger
Accounting Manager
TL Services, Inc.
Van Buren AR
(479) 474-7222
------------------------------


2.  RE: Procore Budget

Posted 11 days ago

Peter,

We also charge such "preconstruction" costs to the job.  What we have done over time is developed an estimate of what these costs average and actually include these in the budget so it is not a complete negative to the PM team.  Depending on the size of the project you can also negotiate preconstruction agreements with the client where such costs are paid outside the prime contract and become a contract of their own.  We prefer this as it allows us to separately track how much it actually costs to get the work.  You usually still lose some money but it is isolated from the main job.  Assuming these are cost plus jobs you want to get as liberal as possible definition of cost of work as possible to make sure such costs before a notice to proceed are allowed in the final cost reconciliation.

 

R. Patrick Lloyd  | Chief Financial Officer
Golden Construction, LLC
2212 First Avenue South
Birmingham, AL 35233
www.goldenconstruction.com
P.  205.327.6617  |  C. 205.283.8936  |   F. 205.327.6667

 

  

 






3.  RE: Procore Budget

Posted 9 days ago
​Thanks for the additional help, I appreciate it!!!  vr, pete

------------------------------
Peter Gauger BS Accounting
Accounting Manager
TL Services, Inc.
Van Buren AR
(479) 474-7222
------------------------------



'