Construction Volume Tracking
Procore is currently working on an initiative to track a company’s 'Construction Volume' utilizing data directly from a project in Procore. The goal is to help save time for customers that are currently performing manual calculations for construction volume themselves.
The long-term vision is to use this information as a method of governance in tracking how much 'Construction Volume' a customer is using compared to their 'Construction Volume Cap' for their current Subscription Term. This would eventually replace the 'Project Cap' functionality that is currently used as a method of governance.
Jump to a section of this FAQ:
- Why is construction volume tracking important for governance?
- How else will you use this data?
- Where can I see my Construction Volume in Procore?
- How is the 'Current Subscription Value' calculated?
- How is the 'Current Subscription Construction Volume' calculated?
- What data is needed in order to calculate construction volume?
- What about project templates?
- What about projects we use for testing purposes?
- What about 'Inactive' projects?
- What about projects in the 'Tendering' stage?
Why is Construction Volume tracking important for governance?
Currently, every Procore customer has a Project Cap that is used by Procore as a method of governance.
The Project Cap represents the total number of projects that a customer can have simultaneously 'Active' in Procore at a single point in time. A project that is Active is displayed by default on the Portfolio home page. Users can search for 'Inactive' projects using the Status filter on the Portfolio home page, however, Inactive projects cannot be reported on and they do not appear in Procore's mobile apps.
Every Procore customer has a Construction Volume Cap.
- Construction Volume represents the total value of the construction work performed by the company (typically spread across several projects).
- Construction Volume Cap represents the total value of construction work that a customer can have active in Procore over the span of a given Subscription Term (most often a one-year time period).
Due to the fact that a customer’s Construction Volume is not currently tracked in Procore today, we are unable to appropriately govern each customer by this method in place of Project Cap.
Procore’s vision is to transition its existing customer base to the Construction Volume governance methodology. This will provide transparency of how Procore is tracking each customer's usage and how much volume is remaining to use. We also believe that this will simplify the experience for users today as we’ve heard that the existing Project Cap calculation is not as clear as it could be and can be confusing or frustrating for users. This is partly due to the fact that the current governance in Procore accounts for project data at a single point in time rather than the expected behaviour of project data spread across a specific time frame (i.e. the Subscription Term). Due to the above, we believe that the transition to Construction Volume will streamline governance for many stakeholders.
How else will you use this data?
Based on customer feedback, we’ve realized that this data and calculation can be used for more than just governance. We’ve heard that this data could be used to track cash flow over time, compare estimates to actuals, create projections of Construction Volume for future time-frames and a simple historical view of Construction Volume month-over-month / year-over-year.
Where can I see my Construction Volume in Procore?
Our initial release includes the new Construction Volume dashboard where you can track the construction volume in your account.
How is the 'Current Subscription Value' calculated?
The Current Subscription Value is calculated by finding the daily value of the project and multiplying that figure by the number of project days that have overlapped with the Subscription Term. If no project days have overlapped with the current Subscription Term, then the value is represented as $0. If only a few of the project days have overlapped with the Subscription Term, then the value is representative of only those days.
The exact formula is below:
- Estimated End Date - Estimated Start Date = # Project Days (i.e. Duration)
- Estimated Value / # Project Days (i.e. Duration) = Daily Project Value
- # Days in Contract = Number of days in the Project that overlap with the Subscription Term dates
- Daily Project Value x # Days in Contract = Current Subscription Value
How is the 'Current Subscription Construction Volume' calculated?
The Current Subscription Construction Volume at the top of the dashboard is the sum of all of the project’s Current Subscription Value. This excludes any project templates.
The % in use is the Current Subscription Construction Volume divided by the Construction Volume Cap.
What data is needed in order to calculate Construction Volume?
In order to accurately calculate the Current Subscription Value, Procore needs the following data for each project that spans within the current Subscription Term:
- Estimated Value
- Estimated Start Date
- Estimated End Date
This data can be entered on the General tab of the Project Admin tool. See Update General Project Information.
What about project templates?
We have included logic that excludes any project templates from the calculation of the total Current Subscription Construction Volume. As such, Project Templates do not display on the Construction Volume dashboard tab.
What about projects we use for testing purposes?
We know that projects used for testing (e.g. Sandbox Test Project) are important for training and implementing Procore to your company.
We intend to add a new Test field to the Create Project page and Project Admin tool that will allow users to flag projects for testing/demo/training purposes. We’ll exclude these projects from the calculation of the total Current Subscription Construction Volume. They also won’t be displayed on the Construction Volume dashboard tab.
What about Inactive projects?
For this initial Beta, we have decided to include Inactive projects in the calculation of Construction Volume. This is due to the fact that the project days for the project that is Inactive may have overlapped with the current Subscription Term and should, therefore, be included in the calculation. The calculation is only looking at projects with days that overlap with the current Subscription Term - this may include projects that are currently (at this exact point in time) Inactive.
What about projects in the 'Tendering' stage?
For this initial Beta, we have decided to include projects in a Tendering stage in the calculation of Construction Volume. This is due to the fact that the project days for the projects in Tendering may overlap with the current Subscription Term and should, therefore, be included in the calculation. The calculation is only looking at projects with days that overlap with the current Subscription Term - this may include projects that are currently (at this exact point in time) in a Pre-Construction stage, Post-Construction stage, Inactive, etc.
Due to this, we intend to add logic that allows us to track projects that have been confirmed vs. unconfirmed. We’ll include this in the calculation to track Construction Volume for awarded projects (how much volume you’re projected to use based on the projects you’ve been awarded) vs. Construction Volume for all projects (how much volume you’d be projected to use if you won all of the projects you tender on).