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Procore (en-CA)

Create a Subcontract

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Objective

To create a subcontract using the project's Commitments tool. 

Background

In Procore, a Commitment is a purchase order or subcontract. Both commitment types are contracts that represent a legally enforceable financial agreement between two parties. 

Things to Consider

Steps

  1. Navigate to the project's Commitments tool.
  2. Click +Create and select Create Subcontract.
  3. Under General Information, do the following:
    • #. Leave the system's default commitment number or type over the existing value to customize the numbering scheme for your project's subcontracts. See How are commitments numbered in Procore?
    • Title. Enter a descriptive title for the subcontract. 
      Notes:
    • Contract Company. Select the company responsible for completing the work on the subcontract (for example, American Construction Co.).
      Notes:
    • Invoice Contacts. Select one (1) or more employees of the 'Contract Company' to designate as the invoice contact(s). After saving the purchase order, any users added here will be added to the 'Private' list. You must select a 'Contract Company' before you can select invoice contacts. 
       Note
      It is important to always add at least one  'Invoice Contact' on a purchase order or subcontract. This ensures that important email invitations and automatic email notifications are sent to the appropriate contact. To learn more about the importance of including invoice contacts on your commitments, see Create Invoice Contacts and What is an invoice contact? 
    • Status. Specify the status of the commitment.
      Note: These statuses reflect the budget in the ways listed above for the Procore Standard Budget View. To create or modify views, Set up a New Budget View.
      • Draft. This is the default status when you create a commitment. 
      • Out for Tender. Indicates the subcontractor is out for tender. Subcontracts in this status are NOT reflected in the project's Budget tool. 
      • Out for Signature. Indicates the subcontractor is out for signing. Subcontracts in this status are NOT reflected in the project's Budget tool. 
      • Approved. Indicates the subcontract has been approved. Subcontracts in this status are reflected in the project's Budget tool. 
      • Complete. Indicates the subcontract has been approved. Subcontracts in this status are reflected in the project's Budget tool. 
      • Terminated. Indicates the subcontract and the agreement has been terminated. Subcontracts in this status are NOT reflected in the project's Budget tool. This status should only be applied when the subcontractor has NOT performed any work on the project. 
      • Void. Indicates the subcontract is no longer valid. Subcontracts in this status are NOT reflected in the project's Budget tool. 
    • Executed. Place a mark in this checkbox to denote that the subcontract was fully signed and executed.
      Notes:
      • Many Procore users choose to place a checkmark in the Executed box when placing the commitment into the  'Approved' or 'Complete' status.
      • The time at which your project team places a checkmark in the Executed box should always be aligned with your project's unique business process 
    • Private. By default, a mark appears in the Make This Visible Only to Administrators and the Following Users checkbox. This means the commitment is only visible to users with 'Admin' permissions on the Commitments tool and any users specified by the following privacy option: 
      • Select a Person. Select one (1) or more users from the list. The users listed here have been granted 'Read-Only' permissions or higher on the Commitments tool. See Manage Permission Templates.
      • Allow These Users to See SOV Items. If you place a checkmark in this box, the selected users are also granted 'Read-Only' access to view the commitment's SOV line items. 
    • Default Retainage. Specify the percent of payment retainage that will be withheld. For example: 5


      invoicecontacts.png
    • Description. Provide additional information, as necessary.
    • Contract Dates:
      • Start Date. Select the date when the scope of work will begin on the job site.
      • Estimated Completion Date. Select the estimated date of when the scope of work will be finished.
      • Signed Contract Received Date. Select the date when the subcontract was officially signed.
      • Actual Completion Date. Select the date when the scope of work was deemed complete.
    • Additional Information:
      • Inclusions. Disclose any inclusions that may not be clearly stated in the related contract documents.
      • Exclusions. Disclose any exclusions that may not be clearly stated in the related contract documents.
      • Attachments. Attach any related materials such as pricing quotes, receipts, signed purchase orders, etc. You may attach files that have been uploaded to your project or drag and drop files from your local computer.
  4. Click Save.
    Notes:
    • Typically, you will use the Create option instead of the Create & Email option because you may still need to add items in the SOV.
    • If you want to create the subcontract and then go directly to the page where you will enter a schedule of values, click the Create & Enter SOV button.
  5. Click Schedule of Values. 
    Notes:
  6. Click Edit. 
  7. Add all related line items.
    Note: If you want to import these fields from a CSV, skip to the instructions for Import from a CSV below.
    • Prime Contract Line Item. If you do not have the Change Events tool enabled, select the related line item from your Prime Contract. If the item is not accounted for in the Prime Contract, select the "Non Budgeted" option.
    • Sub Jobs. Any sub jobs on the project that you have synced will appear in this drop-down. All cost codes related to the sub jobs will appear in the following field. If your company is using the Procore + ERP Integrations tool, see Which integrated ERP systems support the 'Sub Job' concept?
    • Cost Code. Select the appropriate cost code for the item. (for example,  select 02-200 - Earthwork)
    • Tax Code. Enter a tax code to use for this line item.
      Note: This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?
    • Description. Enter a brief description about the line item.
    • Type. Select the appropriate item type from the drop-down menu. (for example, Labour or Subcontractor)
    • Amount. Specify the cost of the line item.
  8. Click the add icon (+). 
    Notes:
    • If the budget code consists of an unbudgeted cost code, cost type, sub job combination, a pop-up message appears to ask you if you want to add this line item to your project's budget.
    • If you click OK the line item is added to the Budget with a question mark (?) icon next to it, to indicate it is an unbudgeted cost code, cost type, sub job combination. See Add a Partial Budget Line Item.
  9. Add additional line items, as necessary.
  10. Click Save.
    Note: When you are ready to forward the subcontract to the subcontracting company, click Email Contract. Be sure to change the status of the commitment, as necessary, to keep it up-to-date.

Import from a CSV 

If you want to import multiple line items to an SOV, the Commitments tool provides users with a CSV template that you can download, complete and then upload to Procore. For instructions, see Import Commitment SOV Line Items from a CSV File.