According to a new report by Procore Technologies, Inc. and Dodge Data & Analytics, owners and contractors face a variety of challenges when it comes to project cost management, but they believe using one streamlined tool will help facilitate construction projects and cost management more efficiently
Conducted in July 2021, the report explores the industry’s perception of project cost management and how construction professionals across multiple regions leverage technology to effectively manage costs.
Participants included construction owners, general contractors, and contractors in the public and private sectors across Australia, New Zealand, Canada, the UK, and the US.
Key findings include:
- Current state of cost management capabilities: When asked to evaluate their organisation’s current cost management capabilities, only 39% agreed and less than a quarter (24%) strongly agreed that capabilities allowed them to effectively manage costs, indicating room for improvement globally.
- Cost management challenges: Respondents ranked “Converting a final cost estimate into a project budget compatible with cost accounts” and “Tracking costs for every aspect of the job to determine how they impact overall project cost” as the most difficult cost management challenges to solve.
- Most important future needs for cost management: Respondents ranked “Forecasting critical costs with real-time data from the field” and “Dynamically tracking every dollar in my budget” as the most important future needs to solve with project cost management.
- Satisfaction with cost management solutions: General contractors and specialty contractors reported notably different levels of satisfaction with their use of software for cost management. The disparity sends an important message that technology is needed to effectively support the workflows of every team member in order to advance the entire industry.
- Disparity in real-time data between field and office teams: The greatest disparity when it comes to challenges with cost management between project-related staff and office-related staff is with “Understanding in real-time where we are making or losing money.”
Redefining what the industry expects from a cost management solution
Geoff Lewis, Procore’s vice president of product for financial solutions, said: “These findings show the value of our cloud based cost management solution.
“Procore customers are ahead of the curve when it comes to connecting field and office teams with Procore Financial Management and our ERP Connector Platform, connecting real-time information in the field to your ERP system.”
Tooey Courtemanche, Procore founder and CEO, said: “The opportunity to redefine what the industry should expect from a cost management solution has never been greater Procore consistently works to be at the forefront of innovation, and this report highlights how construction technology gives teams insight into project financial risk and confidence in their connected data.”
Stephen Jones, senior director of industry insights, Dodge Data, added: “The report shows that construction owners and contractors alike are ready and able to participate in a more holistic and integrated cost management approach.
“Focusing on using fewer, more comprehensive technology tools and increasing all stakeholders’ engagement with cost management will ultimately generate better cost-related outcomes for all parties.”
Read the full report here.