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Introduction
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Budget basics
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Buyout
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Cost types
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Managing the budget
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Invoicing
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Liens
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Wrapping up project finances
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Change orders
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The project team and change management
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The basic change process
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Types of change orders & their effects
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Activity
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Key takeaways
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Knowledge check
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Summary, resources, & what’s next?
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We want to hear from you!
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Conclusion
Contract Administration (Financials) -- Construction Bootcamp (Part 10)
Control costs and manage project scope.
Instructor: Ben Ashburn
1 hour
Last reviewed 12/2025
Video Content
Course Description
This course is designed to equip you with essential knowledge for navigating the financial landscape of construction projects. You will explore budget basics like learning how a budget tracks money spent versus earned to determine profit or loss. This essential method helps in managing decisions, measuring performance, and mitigating financial risk. The course also details different budget types, such as those used by owners or general contractors.
You will also discover the critical and often risky process of buyout, where general contractors secure subcontractor and supplier costs to minimize project risk. The course introduces direct costs, which are essential daily expenses like labor, materials, and equipment for the entire project, as well as invoicing, showing the payment cycle from specialty contractors up to the owner, and liens, a vital protection for contractors to ensure payment for their work.
Then, this course delves into change orders and change management, explaining how these formal agreements modify a project's scope, cost, or timeline after the contract is signed. You will learn common causes for changes, from design errors to unforeseen conditions, and how the project team manages them. Upon completion, you will gain the ability to manage project finances, understand risk mitigation strategies, and skillfully handle contract adjustments.
Learning Objectives
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Define key financial and change management terminology used in construction.
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Describe the financial importance of buyout, committed costs, and change management processes.
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Explain how change orders are managed through standard workflows.
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Apply your understanding of project financials and change management to real-world scenarios.
Prerequisites
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Learning Level: Beginner
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Prerequisite Knowledge: Completion of Contract Administration (RFIs & Submittals).
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Recommended Knowledge: None.
Continuing Education Course Credits
Course Title: Construction Bootcamp
Course Number: PC-01-061825
Session Number: 1
Curriculum Group Name: AIA Providers
Credit: 12.5 AIA LU
Course Expiration Date: 06/24/2028
Procore's Continuing Education courses may qualify for continuing education credits with other professional organizations or fulfill state licensing requirements. If you are a member of a different organization, you can download your course completion certificate from your learning profile and report your completion yourself to the organization for potential credit. Please refer to the organization's continuing education requirements for course eligibility information.
AIA CES Provider statement
Procore Technologies is a registered provider of AIA-approved continuing education under Provider Number 40108059. All registered AIA CES Providers must comply with the AIA Standards for Continuing Education Programs. Any questions or concerns about this provider or this learning program may be sent to AIA CES (cessupport@aia.org or (800) AIA 3837, Option 3).
This learning program is registered with AIA CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. AIA continuing education credit has been reviewed and approved by AIA CES. Learners must complete the entire learning program to receive continuing education credit. AIA continuing education Learning Units earned upon completion of this course will be reported to AIA CES for AIA members. Certificates of Completion for both AIA members and non-AIA members are available upon request.
AIA continuing education credit has been reviewed and approved by AIA CES. Learners must complete the entire learning program to receive continuing education credit. AIA continuing education Learning Units earned upon completion of this course will be reported to AIA CES for AIA members. Certificates of Completion for both AIA members and non-AIA members are available upon request.
Frequently Asked Questions
What are the main topics I'll learn about in this course?
You will gain a solid understanding of budget basics, including how to track profit and loss. You'll explore buyout processes for locking in costs, understand direct costs, learn effective budget management strategies, delve into the invoicing cycle, and learn about liens as a payment protection tool. You'll also learn change orders and change management.
How will this course help me manage project finances and risks?
The course teaches you that a budget is a critical tool to manage decisions, measure performance, and mitigate financial risk on construction projects. You'll learn how buyout minimizes cost and performance risk by locking in subcontractor and supplier prices quickly. Effective budget management helps maintain good client relationships and utilizes historical data for future projects.
What's Next
Continue your learning journey
This course is part of the Construction Bootcamp Learning Path. Explore and complete the additional courses in the path below to complete your journey.
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Construction Bootcamp: Program Intro
View Course PageKickstart your learning journey with the Construction Bootcamp program.
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Construction Bootcamp: Construction Industry Overview
View Course PageUnderstand the construction landscape, structure, and key players.
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Construction Phases & Project Delivery Methods
View Course PageUnderstand how projects are organized and executed.
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Drawings & Specifications
View Course PageLearn to interpret essential project documents.
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Construction Contracts
View Course PageGrasp the foundational elements of construction agreements.
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Estimating & Bidding
View Course PageDive into the critical process of costing and proposals.
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Scheduling
View Course PageMaster techniques for effective project timelines.
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Quality, Safety, & Risk
View Course PagePrioritize excellence, manage hazards, and mitigate project risks.
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Contract Administration (RFIs & Submittals)
View Course PageNavigate essential project communications.
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You are here!
Contract Administration (Financials)
Control costs and manage project scope.
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Construction Site Operations & Project Controls
View Course PageUnderstand day-to-day site management and oversight.
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BIM
View Course PageAn introduction to modern construction technology.
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Professional & Soft Skills For Construction Management
View Course PageDevelop crucial interpersonal and leadership abilities.
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Program Exam
View Course PageTest your knowledge with the final exam and explore pathways for continuous learning.
Related Resources
Instructors
Ben Ashburn
After a successful career as a construction estimator — working his way up from estimating manager to senior estimator — Ben has spent the most recent part of his career in construction sharing his skills with other as a construction educator. Ben has an extensive background in construction education: He has been an assistant professor in the Department of Construction Science at Texas A&M, and lectured about estimating, scheduling, management, and other related construction topics at Murray State University. He has been a construction training and learning development partner with Procore since 2019.
Reviewers
Janine Trinidad
Janine Trinidad is a Construction Educational professional for Procore Technologies. In previous roles, Janine managed all phases of construction on hotel, mixed-use, and institutional projects in the San Francisco Bay area. She was responsible for negotiating contract budgets and change orders, managing RFIs and submittals, and overseeing quality control, among other duties. She is also a certified transformational coach with a focus on women-centered and trauma-informed methods. She is passionate about transforming the construction industry to be a healthier, more successful and welcoming place to work and believes technology and education are allies in doing so.
Dr. Irish Horsey
Dr. Irish Horsey is a seasoned expert in the construction industry with over 25 years of experience. Currently, she serves as the Director of Industry Advancement at Procore, while also teaching part-time at the Georgia Institute of Technology. A former Assistant Professor at Kennesaw State University, Dr. Horsey specializes in project management, workforce development, and diversity and inclusion in construction. She holds a Ph.D. in Higher Education and a Master's in Construction Management. Her extensive industry experience and academic background make her a trusted leader in advancing best practices and innovative strategies in construction.