Improving financial controls for seamless project delivery

The Challenge

Commercial real estate developer BXP(formerly Boston Properties) needed new tools to move its business forward — especially in the area of financial controls. As a publicly traded company, BXP has little margin for error on board-approved budgets, so it was imperative that the company evolve beyond shared spreadsheets and disparate systems.

The Solution

In its search for best-in-class software to meet the company’s financial controls goals, BXP discovered Procore’s end-to-end construction management platform. This discovery also spoke to the company’s broader need for a single, unified solution to guide projects from preconstruction through completion.

The Results

• Achieved balanced budgets by utilizing a unified view of project variables, enabling BXP to consistently meet net zero budget change goals
• Established uniform standards across the organization, eliminating inconsistent legacy systems and fostering continuity in operations
• Streamlined integrations with key partners, providing BXP with accurate, real-time data in a single location for improved decision-making

Building with Purpose

Founded in 1970, BXP’s mission is to cultivate exceptional properties that enhance client success, strengthen communities, and advance opportunity.

BXP oversees more than 177 properties and 50 million square feet of real estate. And from a deep commitment to carbon emission reduction to urban beekeeping to converting an abandoned quarry to a renewable source of water, the company embodies sustainability — while driving strong earnings per share.

Of course, with the company’s bold ambitions comes the people to make them a reality — the leadership team averages more than 30 years of real estate experience. So when that team agreed to change the way the company managed project budgets, there was no second-guessing. And when the research was complete, they’d landed on Procore.

Clear Line of Sight

As a public company, every one of BXP’s budgets is approved by a board of directors. That means the time and complexities of making changes to budgets are significant, even prohibitive. In other words, the company needs to manage changes very aggressively — minimizing them wherever possible, and reporting new variables quickly and clearly so that change processes can get underway promptly to avoid unnecessary delays. Discovering that actuals don’t align with the budget after the fact is a non-starter. Enter Procore.

“Procore really helps refine our budgets,” says Amy Gindel, BXP SVP, Finance & Planning. “We used to have project managers having to reconcile small amounts when the actuals came in and it was a constant exercise getting to net zero change.”

While real-time, instant access to accurate financials during a project was the critical goal, Procore has provided more than that. Its impact begins before the project and continues after it.

Procore’s focus on preconstruction sets the project up for success before it even begins. By running everything from bid management to initial budgeting through one platform, project visibility is 20/20 from day one. And that comprehensive storehouse of project information contributes to a war chest of data going forward as Procore’s construction intelligence capabilities mine historical data to provide sharper forecasts on future projects.

“We’re really excited,” says Gindel. “As we add projects and put more data in play, it’s helping us inform future budgets and helping us improve the way we’re doing things.”

One Platform, One Way of Working

With six regions and multiple projects ongoing at all times, BXP knew they were carrying liability in terms of different teams doing things in different ways, detracting from company-wide alignment of operations. Consistency of processes and practices is essential to the integrity of budgeting information — as well as every other aspect of the building process. Procore provides that essential continuity. Gindel confirms, “It streamlines processes and gives us the transparency that creates standards for the business.”

And that continuity is paramount when it comes to risk mitigation. Procore’s systemization and automation provides a much-needed safety net to take human error out of the equation.

Connecting the Dots with JDE

BXP’s commitment to JDE (JD Edwards EnterpriseOne ERP) meant that whatever project management platform the company chose would need to interface seamlessly with an external book of record. And Procore is designed to do exactly that — providing a front-end view of all project information, while ensuring that that information is synced with partner systems.

“While Procore has a lot of power for the whole construction process — from precon to delivery — all the data is coming in and out of JD Edwards,” Gindel explains. “The lens through Procore is great, then all our reporting is done from our book of record.”

Just the Beginning

BXP set out in search of a budgeting tool. And Procore’s easy, intuitive platform delivered out of the gate. But it’s also given the company a platform for expansion into the future. As a tool built exclusively for the construction industry, it’s suited to meet the challenges unique to that industry by turning project data into business intelligence. Or, in Gindel’s words, “There's a lot more power to the software and we're really looking forward to expanding into other areas.”