M02: Budget Maintenance and Cost Reporting

I.Module Objectives

After completion of this module Project Managers will be able to:

• Identity the steps necessary to create the original budget
• Use Power Bi, Procore Budget Tool, or request WIP from Corporate Accountant
• Understand how to read and analyze the Job Cost (WIP) and Cost to Complete (CTC) report 
• Prepare the Project Monthly Financial Report including forecasting & projections
• Able to maintain the project budget and utilize Budget Changes to KAST standards, including Contingency Utilization
• Understand how Procore is used in conjunction with accounting software.

II. Obtain a Number Job for the Project 

• Once a Project is turned over from Estimating to Operations a job number must be assigned for the Project.  To obtain a job number, you must send an email to Lanette Carter (Lcarter@kastbuild.com Controller) and CC Procorehelp@kastbuild.com requesting a Job to be created in Procore, which procorehelp will then push to Sage Intacct. The Accounting Department will assign the job number in Intacct which will then reflect in Procore.  Projects are often created in the precon phase and will not have an accounting number assigne do them until costs need to be charged or contracts issues.  A typical project number is as follows:

III. Create Original Budget 

• Click Here For Standard Cost Codes 
• The budget is the baseline from which the project's financial performance is measured.  The Estimating Department develops the budget with input from Operations as needed, and submits to the VP of Estimating & Project Executive for final review and approval. 
  • Once all negotiations and Value Engineering, if applicable, are complete the Project Executive and Project Manager create the initial budget in accordance with KAST Standards.
    • It is best practice to maintain the same budget amounts shown in the Final Estimate, and assign a unique cost code to each line item. This ensures that the final budget can be traced back to the original estimate and Prime Contract.

  • Prior to creating the initial budget, it is critical that you understand how the General Conditions (GC), General Requirements (GR), and Cost of Work (COW) were carried in your GMP and Prime Contract language.  Typically, you must match these categories and are not able to re-distribute budgets between them.  The Owner may also require the categories to be reflected on your monthly pay app.

  • Project Mangers must utilize the KAST Standard Cost codes spreadsheet, which is available on the Training Center, to fill out all cost codes, cost types, description and values.
    • add a line for any non-standard budget items, and leave the cost code blank, procorehelp will assign new codes
    • Once the sheet is filled out, forward to Procorehelp@kastbuild.com, for review and then, once approved, to your main office accountant for entry into Sage (Timberline) and Procore budget for the Project Manager to review.  Final approval required by Project Executive. 
      • why: The Strategic Services Department has been working since 2016 to standardize cost codes across the enterprise.  This ensures better historical costs, which in turn better future estimates and streamlines and speeds the overall time to get budgets into Sage and Procore.
      • However, the process may take some time.  PM staff must properly plan for the time required to complete this process.
• Once entered, the Project Manager’s responsible for verifying the accuracy of individual budget line items and ensuring that the Procore budget matches the Contract Value.
• Once the budget is approved and locked, the Project Manager may make adjustments to the budget via Budget Changes to reflect buyout, scope packaging, and other deviations from the Final Estimate.
  • Adjustments to Contingency, whether in or out, must follow the Contingency Utilization Procedure

• Each element of work is assigned a numerical cost code.  As a rule, each Subcontractor and Vendor should have one specific cost code assigned for their work.  Additionally, each individual employee should be assigned a specific cost code to charge their time.  It is important to match the KAST Standard Cost Codes, wherever possible.  If additional cost codes are needed submit a request via email to Accounting and procorehelp@kastbuild.com. The Owner Schedule of Values on the Prime Contract in Procore may be a single lump-sum amount matching your total Prime Contract value, as KAST does not utilize the Owner Pay App tool within Procore.  When multiple cost codes comprise a single line item on the Owner Schedule of Values, the Project Manager must thoroughly understand these instances.  Project Managers should attempt to match the budget format from the GMP as closely as possible.

• See the Owner Requisition Module for further discussion on this topic.

IV. Job Cost Report (WIP) Click Here For Timberline Instructions 

• Project Managers are not permitted to enter into a Subcontract Agreement for an amount that is greater than the budget.  Should this situation arise, a Budget Change (if coming from another trade code) or CUD PCCO (if coming from Contingency) shall be prepared in Procore.  Project Manager must send CUD PCCO, executed by Regional VP of Ops, to Corporate Accountant in order for Accounting to enter into ERP.  PM must click "send to ERP" on Budget Changes in order for Accounting to accept transfer in to Timberline.   
• See the Project Start-up & Buyout Module for detailed information pertaining to Subcontract Agreements, Letters of Intent, Purchase Orders, and Lease Agreements.
• The Job Cost Report (WIP) is the Project Manager’s primary tool for managing and controlling cost on the Project.  PMs may request a copy of the WIP from their corporate accountant.  It provides a detailed breakdown of each cost code to a transaction-by-transaction level for everything on the Project that affects the budget, commitments (Subcontracts and PO’s), and actual costs.  Project Managers should manage cost projections by utilizing the "Forecast To Complete" tools within Procore.  In particular, the Monitored Resources tool.  See the KAST Budget Standards for GC/GR "buyout" or "savings" process.

V. Cost to Complete 

• It is imperative that the Lead Project Manager accurately project the cost to complete the project on a line-by-line basis in the Procore Budget Tool.
• See the KAST Budget Standards for Division 1 Projections Standard.
• In the event of a surplus or overrun the amounts, transfer the amount to or from the appropriate 01-998 (General Requirements) or 01-999 (General Conditions) cost codes.  Click here for more.
• Costs to complete are monitored using the Forecast To Complete tools within Procore.
• The Project Manager must have intimate knowledge of the Project scope of work, the detailed budget, financial risks and opportunities in order to manage the project effectively.  The budget should be reviewed and adjusted on a monthly basis for Project Executive approval.
• The line item total budget must equal the total amount committed.
• A General Conditions budget line item should never become negative following entry of payroll or invoices.  The Project Manager must maintain the Budget in the Procore budget tool with all anticipated changes reflected in the revised budget prior to the time they are needed.  These changes must be based on a comprehensive analysis, and cost to complete projections, of the project’s needs and estimated completion date.  It is critical that the budget be used proactively to manage the Project.  Do not allow the budget to “chase” the costs. Changes in the budget must be performed by creating a budget change within the Procore budget tool.
• Always verify the payroll date as indicated in the Job Cost Report (WIP) before entering cost projections for project staff.  Always check the invoice date for the latest entry in the Job Cost Report (WIP) for recurring costs and Purchase Orders.  The costs entered in Timberline will typically not included recently approved invoices.  This will prevent the Project Manager from forecasting an artificially low cost to complete.
• The Commitment tool within Procore includes Subcontractor (Commitment) Change Order Logs.  Project Staff may create custom-formatted logs using the Reports tool within Procore.  Based on the project size and available administrative staff, entering all invoices associated with Purchase Orders in the PO Log is also recommended.

VI. Monthly Project Financial Report

• Beginning in January 2026 (and thereafter), Project Managers and Project Executives will prepare the project's monthly report in QuickBase.  If you do not have access, email Technical Services.
• It is critical that all Project Managers Create a Budget Snapshot immediatly following creation of the monthly report.
  • Create a "Product Status Snapshot" of both your working KAST standard view and the Quickbase Budget View.
  • Snapshot name should be "[YYMMDD] ME" where "ME" stands for "month end" (e.g. "251229 ME").

Legacy instructions remain below during the transition period.

• The package referred to as the Monthly Financial Report consists of the following:
  • YYMMDD Financial Projection Template
  • Staffing Plan (for projects $10M and greater)
  • Owner Payment Log
  • Procore’s Budget (KAST Budget View – New w/ CUD)
• The Monthly Project Financial Report will be reviewed with KAST Executives at the monthly Project Meeting.  The above-referenced documents are to be updated every month in preparation for this meeting.  The review will focus on:
  • The Contract Amount as adjusted by change orders
  • Projected General Conditions expenses through the completion of the project (including completion of the punch list)
  • Projected labor expenses to completion of the project
  • Subcontractor buyout savings
  • Contingency review
  • Financial and schedule risks
  • Potential Owner disputes
• Below is a brief description of the information included in the report: If Procore financials are being updated through out then month then report should be easy to populate

• PM should prepare a Staffing Plan in conjunction with the original budget and used to manage the timing of employees needed for the project.
  • Click Here For Template 

• Below is a sample of the Owner Payment Log that should be submitted with Monthly Reports to our clients and included in the Financial Report submitted to KAST Executives:

VII. Budget Maintenance

• The Project Manager is responsible for updating the budget on monthly basis to reflect any changes that occur throughout the life of the project. Updating is to be performed by creating a budget change within Procore and PCCO CUD.  Budget changes are performed  by the Project Manager within the Procore budget tool and changes are to be Sent to ERP in order to sync with Timberline.  Project Managers must provide a detailed description on all budget changes. 
• Contingency Transfers are prepared by the Project Manager when funds are added to or taken from Contingency.  The Contingency Transfer must be performed by creating a CE/PCO/PCCO and sent to the Project Executive or Vice President for approval, then to corporate accounting in to be entered in Timberline.  The preparation of Owner Requests for Change Order (PCO) and Prime Contract Change Orders are discussed in more detail in the Change Order Process module.
• The following is a list of items that are charged automatically to every project.
  • Code 01-150 Procore - costs associated with Procore and other project management software are automatically charged to the project under this code
• It is critical that costs are projected accurately.  The cost of General Conditions and General Requirements items must be scrutinized thoroughly and projected through to completion on each budget item.  These include trailers, temporary utilities, temporary power, dumpsters, police details, temporary labor costs, etc.  It is best practice to use the forecast to complete feature in the Procore budget tool in order to properly forecast general conditions. Utilizing the monitored resource feature within Procore allows for automatic calculations for a cost to complete line item based on dates that are inputted as well as an established unit cost on a particular line item.
• As a practice, KAST puts the burden of establishing permanent utility accounts (water, FPL, AT&T, Comcast) on the Owner.  If this is not possible, or was not addressed in the Owner/Contractor Agreement, it is critical that utility accounts are turned over to the Owner immediately after TCO/CO.
• In addition to the Budget Change  as mentioned above, the following forms are useful tools for managing the budget:
  • Commitment change order log located in Procore Change Order tool

VIII. Summary 

•  Prior to entering the budget, KAST Accounting must create the project in Timberline and Technical Services must subsequently create in Procore.
• The project budget (GMP) is developed by the Estimating Department in conjunction with the Operations Department when practical.
• The Project Manager must assign all cost codes.  A Budget Template is available for download in Procore within the Budget Tool.
• As a rule, only one Subcontract or Purchase Order shall be assigned to a cost code.  Subcontracts cannot be awarded in excess of the budget without an approved Contingency Transfer.
• The Project Manger must maintain the cost to complete projection(s) and print Budget reports in Procore.
• Sage Intacct is used to print The WIP.  The Project Manager must request a copy from their corporate accountant.
• The Project Manager is responsible for preparing the project Monthly Financial Report and must be familiar with the source documents used to prepare the report.
• The Project Manager is responsible for updating the budget throughout the duration of the project and must be familiar with the procedures used to maintain the budget.
• Power Bi is available to assist the Project manager or Project Executive in managing budgets and costs.