Procore Superintendent Cost Management & Budgeting Flashcards

What is a back-charge in construction cost management, and how is it recorded in Procore?

Answer: A back-charge is a cost deducted from a subcontractor's payment for work the GC performed on their behalf, recorded through the Commitments tool

Back-charges recover costs from subcontractors for corrective work or cleanup the GC had to perform, and they are recorded as deductions in the commitment.

How does Procore's Budget tool display 'revised budget' versus 'original budget'?

Answer: The revised budget reflects the original contract value plus all approved change orders, while the original budget shows the baseline contract sum

The revised budget column updates dynamically as change orders are approved, giving the team a real-time view of the current contract value.

What Procore report can a superintendent review to understand total committed costs versus actual costs incurred to date?

Answer: The Budget Variance Report or Job Cost Report

The Budget Variance or Job Cost Report compares committed costs (contracts) to actual costs (invoices paid), revealing where the project stands financially.

Why should a superintendent avoid approving verbal change orders from subcontractors?

Answer: Verbal change orders are unenforceable and create disputes over scope and cost; all changes must be documented in writing through Procore

Without written documentation, verbal agreements are difficult to enforce and often lead to payment disputes and litigation.

In Procore, what is the purpose of the 'Draw' or 'Schedule of Values' (SOV) on a prime contract?

Answer: The SOV breaks the contract into line items with assigned values so progress can be measured and invoiced incrementally

The Schedule of Values allocates the contract sum across work items, enabling progress billing to be tied to the percentage of each item completed.

What is the significance of 'substantial completion' in Procore's cost management workflow?

Answer: Substantial completion triggers retainage release and final billing processes in the owner contract

Substantial completion is the contractual milestone that typically triggers retainage release and initiates final payment processes between the owner and contractor.