Peter Licavoli: Tell me a little bit of where the idea for the .org came from.
Darryl Kysar: Procore.org was created from a combination of a couple different things. First is our educational outreach program that started with giving away our construction management software to Cal Poly University in San Luis Obispo, California. We now give away Procore to middle school programs all the way up to PhD level education programs. And it’s not just the software, we also create educational material and training pieces around industry best practices and how technology can drive efficiencies and move the industry forward. That was the first part of it. Second is the true belief of our CEO and founder that you should be a good citizen of the industry you service. So you could say that Procore.org is based on our founder's vision of being a great company doing great things.
Peter Licavoli: The for-profit world is increasingly taking a role in social impact endeavors. How many schools and nonprofits is Procore.org involved with?
Darryl Kysar: We work with about 400 different entities. This includes over 200 universities and the rest is a mix of non-profits like Habitat for Humanity and low-income housing projects like Peoples' Self-Help Housing. We also work with a few union training centers and trade schools.
Peter Licavoli: What are the costs and associated ROI on this investment?
Darryl Kysar: We've actually never looked at cost vs. value because we don't structure our department to track ROI. We simply give. We give somewhere in the area of $5 million a year in software value alone, which doesn’t include the implementation, on site training, or ongoing support that our team provides free of charge.
Peter Licavoli: What are some of the projects that Procore.org is enabling?
Darryl Kysar: I don't know that I would say that we're involved in too many huge, cutting edge projects. On the nonprofit side, we’re involved with enabling entities to do more with less. One of my favorite nonprofit clients is an entity out of England that is using Procore to build kitchen setups. Basically, they go into either displaced person camps or war-impacted areas, and they have a rapid deployment system to build kitchens and feed people. The instructions and the construction documents are stored and viewed in Procore. The crew can open it up anywhere with an internet connection and have what they need to put this structure together within 24 hours.
We also work with a group of students out of Texas that are building medical clinics in 52-foot containers. That’s two containers that are put together and they use Procore for the construction piece of putting the container together, and then also for the installation of the piece.
Peter Licavoli: I know you have made a significant investment in construction management schools. I wondered what the buy-in from architects has been, what about integrations maybe with AutoCAD or maybe some of the other drawing tools. Do you feel you're having a big impact on that portion of the industry?
Darryl Kysar: It's funny. We actually have a lot of engagement with the American Institute of Architects and we see those light bulb moments when we do Lunch and Learns at our headquarters for the local AIA chapter. One of my favorite topics when we do a Lunch and Learn is on the Design-Build sector. Design-Build is still up and coming, and I think it's going to be a bigger and bigger field. There's a ton of communication and a ton of collaboration in Design-Build, as much if not more during the design phase of a project than there is in the construction phase. The value there is running all of the communication in Procore early and often.
Peter Licavoli: We have been working with the FIU School of Architecture and the students visit construction sites around Miami where we look at the sustainability aspects of a project. We are creating homework and assignments to be completed in Procore. We tried it with the Daily Log tool first. We're looking for ways to better engage the students in Procore. Any ideas around how that might be better accomplished?
Darryl Kysar: I think with student we need to start by showing the value, and there could be a couple different ways we could that, right. On our YouTube channel we have interviews with every role from architects to field engineers to project managers discussing the value of having a system in place that supports complete communication. We even hear the question in the construction management schools, “Why is this important?” Well, it's important on multiple levels, biggest one being that there's a system of record. There's accountability for you and for others in a system like this. Once students see that this software is really used and really useful they want to learn all they can about it. From there, our team provides all kinds of resources to professors like a full curriculum and learning modules that are ready to use in their classrooms.
Peter Licavoli: Do you have schools where Procore is in the construction management and the architecture school?
Darryl Kysar: We work mostly with engineering and construction management programs. We haven’t yet seen strong buy in with architecture schools. It seems that the school of architectures are focused on design technology and have less use for construction management. It’s an interesting trend because I've never gone to a project where the architect who delivers a set of plans is not involved in the project for the rest of the project.
Peter Licavoli: ARC+ is a social impact organization. We started with the Buildgreen program, and I think we're making an impact, a small but significant impact. We've had over 400 students come through the program, 60 plus site visits, that you have definitely helped enable. Let's talk about the green component of Procore and how you might see that being built out. Is there a collaboration that we could develop best practices around green buildings that’s separate from LEED?
Darryl Kysar: You tell me. We're always looking to develop these types of solutions. I'd love to figure out a way to get the messaging out on sustainability. I think you’d like to know that Procore has an employee led sustainability council. The effort is near and dear to our company. One of the things that we talk about in our sales process is the elimination of paper. It’s a small effort towards sustainability, but operating your job site more efficiently, with less space and less waste does make a difference.
Peter Licavoli: Through the Buildgreen program we are visiting and educating on sustainable subjects like solar and LEED certification. But as an organization we realized that in order to build a more sustainable community we would have to take a look at the affordable housing shortage affecting all urban areas. How do you think Procore could help enable a quicker, better process for low-income housing projects?
Darryl Kysar: Procore brings efficiencies and systems into place for these organizations. Our software saves them money which means they have more money to do something else with, have a bigger impact, take on more impactful projects.
One of the quick fixes that we'll accomplish next is pre-tax giving through our employees. If there's a nonprofit that they want to give to, they can set it up so that their personal donation is deducted out of their paycheck. We're a very, very giving company.
Peter Licavoli: Perfect. Thank you again for all your efforts.