Makers Fabrication Turns to Procore to Increase Financial Efficiencies by 50%

The Challenge

Makers Fabrication launched in 2015 with a focus on digital technology systems. However, relying on multiple software solutions required time to upgrade scripts, update APIs, and manage various linked workflow automations. When reviewing the administration team’s productivity levels – particularly from a financial management perspective – the Makers team could see a mismatch between budgets, forecasts and client billings. Financial reporting and cash flow management were managed too slowly, allowing cost overruns to go unnoticed until it was too late.

The Solution

As a single fully integrated platform, Procore would best support Makers’ construction and financial management needs. The platform helps centralise field productivity, invoice management, quality and safety, project financials, estimating and project management. API integrations to Makers’ Google suite and Xero account improved the accuracy of financial data and communications. Unifying data between Procore and Xero allows Makers to track and report on head contracts through commitment progress claims, direct costs and timesheets in real-time. This shaves weeks from previous reporting timelines and ensures accurate supplier billing for clients.

“Procore has given us the freedom to capture new efficiencies and a transparent, real-time understanding of our financial position. With Procore recognised as a construction management technology innovator here in New Zealand, it played a part in its implementation,” said Grant.

The Results

• 50% increase in efficiency using Procore financial solutions
• 100% transparency with a central platform
• 300% reduction in operational risk with accurate reporting

Improved Project Management by Mandating Procore

Mandating Procore has ensured the Makers team has a single source for all data and continue its commitment to digital project management. Implementing Procore also helped Makers achieve a new level of efficiency that was impossible to deliver with multiple solutions. Adding Procore to construction contracts established new processes for architecture consultants. Now all directions and correspondence, drawings and timesheets are managed in Procore. Subcontractors were also required to record all defects in Procore. With the additional transparency and accountability across documents and defects, the Makers team can quickly identify who is responsible for everything from directions to re-work - helping projects resolve outstanding items and accelerate completion times.

An unexpected benefit of centralising its project and financial management with Procore has been recognising variations in invoices and tenders. Leveraging the Xero integration with Procore has helped to match invoices to purchase orders, estimates and budgets, improving the way Makers identifies errors on supplier invoices. Additionally, the integration between MS Project and Procore helps Makers and subcontractors converse much earlier in the tendering process to identify issues around pricing – such as how to resolve looming price increases and warehousing of building supplies. Procore also gives Makers deeper insights into any uncharacteristic price increases compared to previous projects.

“Procore allows us to drill into 100% of all changes, including unexpected variations. Being able to compare per-square-metre costs over time, and against expected benchmarks helps us better understand price increases and explain those in detail and in advance with clients,” he said.

Conversely, the Makers team has identified unexpected variances in project estimates that would have cost its valued subcontractor network valuable profit.

"Not only do we want to build smarter, but we also need our broader team to build a sustainable business model and build smarter too. Procore’s platform is having a positive ripple effect with our partners, and we view this as a business benefit,” outlined Grant.

Driving Financial Success with Procore and Xero

The integration between Procore and Xero is delivering a sophisticated level of financial analytics. All line items are entered via OCR text recognition in Xero, and the relevant details can be uploaded into Procore budgets. Xero takes care of the accounting, and Procore takes care of the financial administration and management.

"With Procore, Smoothlink and Xero, we can better analyse the business. It’s easier to understand our overheads and margins with transparent and up-to-the-minute reporting, Grant commented.

The future for Makers looks bright, according to Grant: "We believe Procore will be instrumental in our growth in the future. The Procore technology can scale and grow along with Makers, which is really important for us.”