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Configure Advanced Settings: Commitments

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Objective

To configure settings for your project's Commitments tool.

Background

Users who have been granted 'Admin' permission can customize the Commitment tool's advanced settings at the beginning of the project. These settings define how the Commitments tool works for your end-users. For example, you can select which users are on the tool's default distribution list, whether or not a purchase order or subcontract is set to 'Private' by default and more. Unless noted otherwise, settings can be adjusted at any time over the course of a project. 

 Important
  • Before your project users start creating commitments, it is important to configure the Number of Commitment Change Order Tiers setting as described below. To learn more, see What are the different change order tiers? 
  • Once a user creates a Commitment Change Order (CCO) on your project, you are NOT permitted to modify your default change order tier setting. 

Things to Consider

  • Required User Permissions:
    • 'Admin' level permissions on the project's Commitments tool.

Prerequisites

Steps

Contract Configuration

  1. Navigate to the project's Commitments tool.
  2. Click the Configure Settings icons-settings-gear.png icon.
  3. Under Contract Configuration, do the following:
    commitments-contract-configuration.png
    1. Contracts Private by Default
      Place a mark in this checkbox to set new subcontracts to Private by default. This is the default setting.
      Notes:
      • A 'Private' commitment is only visible to users with 'Admin' permission on the Commitments tool and users added to the 'Private' list on the General tab of the commitment.
      • Remove the mark to make commitments visible to users with 'Read Only' permission or above. 
    2. Enable Purchase Orders
      Place a mark in this checkbox to provide users with the ability to create purchase orders. This is the default setting.
      Remove the checkmark to prevent users from creating purchase orders.
    3. Enable Contracts
      Place a mark in this checkbox to provide users with the ability to create subcontracts. This is the default setting. Remove the checkbox to prevent users from creating subcontracts. 
    4. RFQs Will Be Due After
      Specify the number of working days to identify the due date for a response to an RFQ. To learn more, see Respond to an RFQ as an RFQ Recipient.
      Notes:
      • The default value for the RFQ due date is seven (7) working days. You can adjust change this setting as needed on each individual commitment.
      • Your company's Procore Administrator can also set which days of the week the system considers as its working days. For details, see Set Project Working Days.
    5. Number of Commitment Change Order Tiers
      Select one of these options:
      • 1-tier (Commitment Change Order). See What are the different change order tiers?
      • 2-tiers (Potential Change Order > Commitment Change Order).
      • 3-tiers (Potential Change Order > Change Order Request > Commitment Change Order).
         Important

        Best practices for the change management process:

        • Always select a change order tier setting before you start creating commitments.
        • Once a user creates a Commitment Change Order (CCO) on your project, you are NOT permitted to modify your default change order tier setting. 
    6. Allow Standard Level Users to Create PCOs
      Note: This option is only visible and available if you are using the 2- or 3-tier change orders setting. See What are the different change order tiers?
      Mark this checkbox to allow users with 'Standard' permissions to create Potential Change Orders. If the checkmark is removed, only 'Admin' permissions will have the ability to create PCOs
  4. Continue with the next step.

Contract Dates

  1. Scroll to the 'Contract Dates' section.
  2. Mark any of the checkboxes below. This setting determines when to start the project's warranty period or to determine the date when the owner takes responsibility for the project.
    Examples
    • Contract dates are designed to help determine when the project owner assumes financial responsibility for payment of utilities, insurance and/or security of the property from the contractor.
    • Contract dates can also be used to determine when a general contractor and subcontractor(s) are entitled to payment of the contract balance.
    commitment-contract-dates.png
    • Enable Approval Letter Date
      Enable this setting if your company sends a letter to approve and accept the details of construction work. 
    • Enable Contract Date
      Enable this setting if you want users to log the effective date of the contract. 
    • Enable Issued on Date
      Enable this setting if you want users to log the date the contract was issued. 
    • Enable Execution Date
      Enable this setting if you want users to log the date the contract was signed by all the necessary parties. 
    • Enable Letter of Intent Date
      Enable this setting if you want users to log the date your company sent a Letter of Intent (LOI) to outline the details of a contract between the necessary parties before the contract is finalized. 
    • Enable Returned Date
      Enable this setting if you want users to log the date a contract was returned. 
  3. Continue with the next step. 

Default Distributions

  1. Scroll to the 'Default Distributions' section.
  2. Configure your settings as follows:
    commitment-default-distributions.png
    • Include Primary Contact in Default Distribution
      Mark this checkbox to automatically include the person listed as the company's Primary Contact in the Directory tool in the default distribution list. Note: To be included on the distribution list, the vendor record must have a designated primary contact in the Company Directory. See Add a Person to the Company Directory.
    • Commitment Distribution
      Select any user names from the Project Directory. Procore automatically adds the people to the distribution list for the purchase order or subcontract.
    • Commitment Change Order Distribution
      Select any Procore user(s) that should always be added to a commitment change order's distribution list by default when a change order is sent by email.
    • Request for Quote Distribution
      Select users to be notified when RFQ responses are submitted.
      Note: You have the ability to also modify the Request for Quote distribution within the RFQ.
    • Invoice Distribution
      When an invoice or the subcontractor SOV is submitted for a commitment, the user(s)  and contact(s) listed in the Invoice Distribution list will receive an email when the status of either the Invoice or the subcontractor SOV is set to Under Review.

Default Contract Settings

  1. Scroll to the 'Default Contract Settings' section.
  2. Configure the settings as follows:
    commitments-default-contract-settings.png
    • Default Accounting Method for Purchase Orders
      Select between the Unit/Quantity Based or Amount Based accounting method. The default setting for purchase orders is Unit/Quantity Based.
      Default Accounting Method for Contracts
      Select between the Unit/Quantity Based or Amount Based accounting method. The default setting for purchase orders is Amount Based.
      Default Retainage Percent
      Specify a default retainage percent (for example, 10%) that is automatically be set by default.
       Important
      If your company has enabled the sliding scale retention settings for use on your invoices, keep in mind that the 'Default Retainage Percent' setting is overridden when performing invoicing. See Enable Sliding Scale Retention Rules on a Commitment's Invoices. 
    • Enable Comments By Default
      Mark this checkbox to enable a Comments tab where users can add comments and attach files. This checkbox is cleared by default. 
      Enable Markup By Default
      If enabled, you will see the Financial Markup tab, so you can set up and apply markup for each commitment. Change Orders will automatically be associated with the correct cost code so changes are accurately reflected in the Budget tool.
    • Enable Payments By Default
      To prevent users from being able to create payments, leave this box unchecked. It's checked by default.
    • Enable Invoices by Default
      If enabled, you will see the Invoices subtab so that invoices can be created. To prevent users from being able to create invoices, leave this box unchecked. It's checked by default.
    • Show Cost Codes on Invoice PDF by Default
      Place a checkmark in this box to show cost codes on invoice PDFs by default. 
    • Enable Completed Work Retainage By Default
      Place a checkmark in this box to enable completed work retainage by default.
    • Enable Stored Material Retainage By Default
      Place a checkmark in this box to enable stored material retainage by default.
    • Enable Subcontractor SOV by Default
      Place a checkmark in this box to enable a subcontractor SOV by default for commitments. 
  3. Click Update to save your changes.

 

If you would like to learn more about Procore’s commitments software and how it can help your business, please visit our construction financials tool product page here.