Procore Enhances its Preconstruction Solution for Better Cost and Risk Management

Rhea-AI Summary

Procore Technologies, Inc. (NYSE: PCOR) has introduced an enhanced Preconstruction solution at the Procore Innovation Summit. This platform streamlines project data management, significantly reducing costs associated with project rework, which was estimated at over $500 billion in 2018. The solution integrates estimating, bidding, and financial tools, enabling improved budget accuracy and collaboration among project teams. Procore's acquisition of Esticom enhances this functionality, allowing for automated budget creation and AI-assisted takeoffs. The company emphasizes the importance of design coordination to mitigate cost risks.

Positive

• Launched an enhanced Preconstruction solution that integrates estimating, bidding, and financial tools.
• Addresses the costly problem of project rework caused by poor data and communication.
• Incorporated Esticom's technology for automated budget creation and improved takeoff processes.
• Offers advanced collaboration tools for design teams to enhance constructability.

Negative

• None.

Procore Technologies, Inc. (NYSE: PCOR), a leading provider of construction management software, announced an enhanced Preconstruction solution at today’s Procore Innovation Summit. This solution connects people, designs, and data across preconstruction and the course of construction on Procore’s platform, with analytics tools to support the entire process.

According to a 2018 study conducted by FMI, correcting work that was incorrectly done, or rework, cost over $500 billion in 2018. On average, 52% of that rework was caused by poor project data and communication. Procore Preconstruction is tailored for owners, general contractors and specialty contractors looking to win and build more profitable projects, while reducing risk and rework. Every project stakeholder can now be connected to a project’s design, estimates, bidding and budgets within the Procore platform.

Improving Estimates by Connecting Estimating to Financials

Procore Preconstruction starts with estimating and takeoff, and the data flows into bidding and financials tools. This allows users to better manage project costs through all phases of construction, by connecting the preconstruction teams with the field.

Procore acquired construction estimating and takeoff company Esticom in October 2020. Esticom’s technology is now integrated into the Procore platform and its user interface, enabling users to:

• Automatically create their budget and prime contracts directly from an estimate with a single click, preventing important information from being lost in the transition from preconstruction to operations.

• Streamline change management and ensure their total estimated profit is not lost between systems or teams — made possible by connecting drawing markups to estimating via the Drawings tool.

• Build more accurate takeoffs faster with Auto-Count, an artificial intelligence feature that assists in symbol recognition.

• Use Procore’s new benchmark data, available within Procore Analytics, to compare the past performance of initial estimates to the final budget at project delivery. The performance of specific specialty contractors across projects of similar size and type can also be compared.

Scott Polsen, Managing Director at Benmax, said, “Procore Analytics provides visibility for us to analyze and validate information quickly, to allow us to make decisions faster and with more confidence.”

Better Design Coordination to Ensure Constructability

If the first half of reducing cost risk is to make better estimates, the second half is better design coordination to ensure constructability. Constructability review is an all-hands-on-deck process with the design team and the project team collaborating to flag issues and ultimately ensure that the plans put into action can be delivered as designed.

Procore Preconstruction has tools for effectively managing design collaboration, including:

• Coordination issues: This new tool allows teams to track and manage all 2D and 3D design issues in one location, and to perform collaborative design reviews on drawings.

• “Follow Me” feature in Procore BIM: Users can see all active users reviewing the model and navigate directly to their location with a single click, making design reviews more efficient and effective.

• Dynamic 2D Views from Procore BIM: Users can create 2D drawing views of the design from the BIM model. Now teams can see all building systems consolidated in a single view to make sure everything is coordinated and properly located prior to construction.

Josh Soules, Foreman at North Mechanical Contracting, said, “Having access to elevation drawings, on-the-fly, in Procore, is just one more tool that enables me to do my job more efficiently.”

Learn more about Procore Preconstruction in this blog post and at https://www.procore.com/preconstruction.

Forward-looking Statements

This press release contains forward-looking statements about Procore and its industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including, but not limited to: statements regarding the expected performance of Procore’s business and objectives of management for future operations, are forward-looking statements. Procore has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that Procore believes may affect its business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors that could cause results to differ materially from Procore’s current expectations. You should not place undue reliance on Procore’s forward-looking statements. Procore assumes no obligation to update any forward-looking statements to reflect events or circumstances that exist or change after the date on which they were made, except as required by law.

About Procore

Procore is a leading provider of construction management software. Over 1 million projects and more than $1 trillion USD in construction volume have run on Procore's platform. Procore’s platform connects key project stakeholders to solutions Procore has built specifically for the construction industry—for the owner, the general contractor, and the specialty contractor. Procore's Marketplace has a multitude of partner solutions that integrate seamlessly with Procore’s platform, giving construction professionals the freedom to connect with what works best for them. Headquartered in Carpinteria, California, Procore has offices in Canada around the globe. Learn more at Procore.com.

PROCORE-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20210610005884/en/

FAQ

What is the new feature in Procore's Preconstruction solution for PCOR?

Procore's enhanced Preconstruction solution integrates estimating, bidding, and financial tools to streamline project data management.

How does Procore's Preconstruction solution reduce project rework costs?

It connects project stakeholders and improves data accuracy, addressing issues that caused over $500 billion in rework costs in 2018.

Which technology did Procore integrate into its platform for enhanced preconstruction capabilities?

Procore integrated Esticom's technology to improve estimating and takeoff processes.

What are the expected benefits of Procore's Preconstruction solution for contractors?

The solution helps contractors manage project costs more effectively and fosters better collaboration among teams.

When was the enhanced Preconstruction solution announced by Procore?

The enhanced Preconstruction solution was announced at the Procore Innovation Summit.