Achieving operational excellence for better project outcomes

The Challenge

MG McGrath is a specialty contractor that executes custom architectural exterior enclosure systems across the United States. Some of its one-of-a-kind projects include the Louis Vuitton Men’s store in the Miami Design District, and the citizenM Hotel in downtown Los Angeles. With its focus on unique architectural surfaces and intricate glass features, MG McGrath’s complex projects required a more comprehensive construction management solution. The company wanted to implement a user-friendly system to replace or merge the multiple systems it was attempting to use to centralize information and provide real-time data, increased visibility, and improve communication amongst stakeholders.

The Solution

With these challenges in mind, MG McGrath partnered with Procore to deliver better outcomes. Implementing Procore has addressed all of the company’s concerns by creating one, cloud-based hub in which every project stage can be easily managed. Additionally, it has improved department collaboration, enhanced performance, increased profitability and boosted productivity.

A Viable Solution, From Field to Finance

When it comes to technology in the construction industry, it can be challenging to get everyone to adopt it. Whether it’s because it isn’t how things have been done in the past, or unfamiliarity with technology in general, introducing such a significant change can be daunting for many who work in the industry — especially for folks in the field. So, with the goal of utilizing a single technology platform across the company, it was vital that MG McGrath opt for user-friendly software. Holly Ward, Chief Financial Officer at MG McGrath, shared, “When I’m looking at a solution that's right for our company, it needs to be able to meet my needs from an information and reliability standpoint, but it also needs to be viable for my tradecraft to use.”

Ward was unsure that finding a solution that provided an easy way to perform even the most complex tasks was possible, until she found Procore. She told us, “With Procore, it's a win-win. You can get the buy-in from the people who have to use it in the field at the same level as the buy-in from project managers and administrators of the system.” Even more shocking was how quickly field employees began wanting to use Procore for everything possible. Ward recalled, “I have guys who’ve worked in the industry for 30 years pushing why they want to use Resource Tracking, time entry and so on. They see the value of getting the information entered and managing their output on the project, and also using it as a way to be able to make sure they're on track.”

Procore's flexibility and integration capabilities have become invaluable at MG McGrath. The company no longer has to try and keep information straight while going back and forth between numerous systems, because Procore’s integration capabilities have allowed the company to consolidate data from multiple sources into a single source of truth. In fact, MG McGrath is so committed to using Procore for its operations that Ward noted, “At this point, we’re so heavily invested in Procore that we definitely wouldn’t pursue a technology partner if it wasn’t able to integrate with Procore. We look for solutions that either are already housed in Procore, or that we can effectively integrate with Procore.”

Just as Ward and other company leaders act as resources for others learning Procore within MG McGrath, Procore acts as a resource for those leaders. Ward explained, “The partnership between Procore and us is phenomenal. Every step of the way, whatever we're looking to accomplish — even if it's pushing something outside of the box — I feel like the team that we're working with is there to help us find the solution, integrate it, and make sure we're satisfied with it.”

Increased Communication Leads to Improved Performance

Having highly-specialized projects means having an ample amount of people working on numerous moving parts, simultaneously. Without the ability to easily view updates, understand project progress, and simply communicate, teams at MG McGrath were experiencing challenges with productivity. As Ward stated, “When you have a lot of different stages of your projects and a lot of different people doing many different things throughout that process, you have to make sure everyone has the same information.”

Fortunately, since implementing Procore, MG McGrath’s productivity and general performance have evolved, as they can now communicate and collaborate at every stage of a project. Ward explained, “Procore has helped us get everybody to collaborate because everyone within the company is going into the same system, looking at the same data. They're starting to interact more at different phases and have a bit more of an overlap in those handoff processes, so they all help manage the project from start to finish.” The switch from reactivity to proactivity is evident in MG McGrath’s day-to-day operations, and in its final results. Ward depicted this, saying, “We've found out about things sooner than in the past by everyone having access to the same system and looking at each other's data.” She elaborated, “With Procore, we have the right people involved when they need to be involved every step of the way. We have people resolving issues sooner because, with real-time data and information sharing between departments, we have people getting pulled into managing the project and the phases at the right time instead of a little too late. We aren’t managing a crisis instead of proactively managing a project anymore.”

The enhanced communication has fostered a culture of teamwork and transparency, driving MG McGrath's success not only financially, but also for its people on a personal and professional level. Enabling teams to collaborate on projects from beginning to end has created a more fulfilling workplace for the company’s employees. Ward told us, “The information sharing creates more camaraderie between our teams. People get excited about hitting goals. We can see that up front now, and it's shared with everyone. We share successes better, and we come together quickly to help mitigate risk and manage challenges.”

Enhancing Financial Performance

MG McGrath has leveraged Procore to increase cash flow and profitability while reducing financial risk significantly. By providing project managers with up-to-date information, Procore empowers them to make informed decisions that protect schedule and budget. Ward states, "One thing that Procore has done to help us with cash flow and margins on our business is provide visibility to our projects and help project managers by providing real-time data on what's yet to come, and what has already happened on the job."

Additionally, Procore's integration with MG McGrath's ERP system, Sage 300 CRE, has further streamlined financial processes and reduced the risk of errors or delays. With payroll data and financial transactions automatically synchronized between Procore and Sage, project managers have instant access to financial information without needing to navigate the ERP system separately.

Perhaps the biggest help, though, has been Procore’s role in standardizing the company's change order management process. Ward spoke about them, saying, “The larger projects get, the more complex they are, and the slower GCs are to approve change orders. Sometimes, it’s like pulling teeth to get change orders from a General Contractor. We needed something to help us see up-to-date job costs as soon as possible.”

By centralizing change order tracking and providing visibility into their status, Procore eliminates the challenges of managing change orders on spreadsheets or other manual, disjointed systems. Ward acknowledged the importance of Procore in this regard, stating, "There wasn’t one central place where the company could go and see all of the change orders that any project manager was pursuing against any project, or see the status or level of where they were at. Without Procore, we didn’t have the change orders automatically rolling into the contract amounts or the revenue forecasting." In doing so, MG McGrath can now ensure that change orders are properly accounted for in financial projections.

Ultimately, Procore not only provides MG McGrath with accurate and reliable financial data, but also protects the company by maintaining a comprehensive audit trail and historical record. In the event of disputes, having all relevant information consolidated in one source with date stamps and an audit trail becomes invaluable. As Ward emphasizes, "Procore protects us as a company. Nobody wants to have a claim on a job or have to go back and prove something, but if you do, having everything all in one source with date stamps, history, and progression of what happened only helps paint the picture of understanding. There's an audit trail in there. It ensures the best outcome for you and your team."

By providing real-time financial information and project performance insights, Procore enables MG McGrath to make reliable forecasts, improve estimating accuracy, and execute work more efficiently. As Ward stated, "Procore definitely connects to profitability because real-time information and having a picture of how your project is performing financially is only going to lead to reliable forecasting, better estimating, and better execution of the work." With a clear understanding of project costs and timelines, MG McGrath can bid for work at the right price and identify and address any issues that may arise, ensuring projects stay on track and within budget.