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Create a Prime Contract

Objective

To create a new Prime Contract for a project.

Things to Consider

  • Required User Permissions: 'Admin' level permissions on the Prime Contract tool.
  • A project can only have one Prime Contract.
  • The Prime Contract typically represents the agreed upon contract between an owner who is financing the construction project and the general contractor who is being paid to manage the construction project. In the case of Procore, the Prime Contract will typically be the contract between you and your client, which may be a different relationship than an owner to a general contractor.
  • The Budget can be used to create the Prime Contract if the two are identical, or if the Prime Contract is a division-level summary of the Budget. Often times the internal Budget and the client facing Prime Contract are different levels of detail and the Prime Contract isn't strictly a division level roll-up of the Budget.
  • For general contractors that are customers of Procore, the Budget is more commonly used as an internal tool for managing the contracts and costs with subcontractors (and is not visible to your financing client), whereas the Prime Contract is used as the contract between you and your client (and is not visible to your subcontractors).
  • You can create multiple line items with the same cost code and categories, and use the Description field to clarify the difference between the line items.
  • When adding line items, you can leave the Cost Code field blank by entering "None."
  • In order for anyone to receive a notification of the Prime Contract, you must email the Prime Contract.

Steps

  1. Navigate to the project's Prime Contract tool.
    This reveals the Prime Contract page. 
  2. Click Create Prime Contract.



    This reveals the New Prime Contract page. 
  3. Under 'General Information', complete the following data entry:
    (Note: None of these fields are required to create a Prime Contract. You can add information at a later time, if desired.)
    • Contract #: Assign a unique identifier for the Prime Contract.
    • Owner/Client: Select the party to whom you will be sending your payment application.
    • Architect/Engineer: Select the lead architect on the project.
    • Contractor: Enter the name of the company (e.g. GC) who is managing the construction project in Procore. If you are setting up the Prime Contract, you will typically enter your company's name in this field. 
    • Title: Provide a descriptive name for the Prime Contract.
    • Status: Specify the current status of the Prime Contract. (e.g. Draft, Out For Bid, Out For Signature, Approved, Complete, or Terminated)
      Note: If the status is set to "Approved" or Complete", change orders and pay apps can be created. If the status is set to anything other than "Approved or "Complete," change orders and pay apps can not be created.
    • Private: Specify who can view the Prime Contract. By default, the Prime Contract is "private" and is only visible to users with 'Admin' user permissions on the Prime Contract tool. You can also allow non-Admin users to view the Prime Contract, if desired. Additionally, you can also allow selected non-Admin users to have read-only access to individual line items under the SOV subtool.
    • Start Date: Specify the project's official start date.
    • Estimated Completion Date: Specify the estimated date for project completion.
    • Signed Contract Received Date: Specify the date when the Prime Contract was officially signed by all legally bound parties.
    • Actual Completion Date: Once a project has been officially completed (i.e. final payments have been processed and closed) you can specify the actual project completion date for record purposes.
    • Default Retainage: Specify a default percentage that will automatically be applied to all line item costs for retainage purposes. (e.g. 10%)
    • Executed: Place a mark in this checkbox to denote that the contract was fully signed and executed.
    • Description: Provide a helpful description about the contract.
    • Inclusions - Specify any agreed upon inclusions in the contract.
    • Exclusions: Specify any agreed upon exclusions in the contract.
    • Attachments: Attach any relevant documents, such as a signed copy of the contract.
  4. Click Create or Create & Email.
    The system saves your new Prime Contract. 
  5. Click the Schedule of Values (SOV) subtab.
  6. Click Edit. There are several different ways to create an SOV.

Create SOV from the Budget Tool

If you created a project budget (using the Budget tool), you can use it to quickly build out a Prime Contract's SOV. There are two options for how to create the Prime Contract SOV from the Budget tool. (Note: You can only perform this action if there are zero line items.)

  1. Navigate to the project's Prime Contract tool. 
    Note: Make sure that the Prime Contract status is set as "Draft" mode under the General tab.
  2. Click the Schedule of Values sub tool.
  3. Click Edit.
  4. You will have the option to perform one of the following actions:
    • Option 1: A line item will be created for each line item on the project budget

      Create_a_Prime_Contract_SOV_by_Line_Item.png
       
    • Option 2: A line item will be created for summaries of each division on the project budget. (Note: Use this option if you prefer to breakdown costs by division instead of by individual line items.)
      Create_a_Prime_Contract_SOV_by_Division_Summary.png
       
  5. ​Click Save to save your changes.

Import from a CSV

If you prefer to upload a CSV to import all line items, please download and populate the provided CSV template instead. Be sure to follow the instructions in the tutorial below to ensure that add your data to the CSV in the correct format because the uploader enforces very strict syntax requirements. Data must follow the prescribed format to ensure that your data can be successfully uploaded into Procore. For example, CSV rows that only contain a Cost Code Name and Cost Code Number will not produce a new line item.

For more detailed instructions, see Import a Prime Contract CSV.

Manually Add Line Items

To manually add line items to the Schedule of Values:

  1. Navigate to the project's Prime Contract tool.
    This reveals the Prime Contract page. 
  2. Click the Schedule of Values tab.



     
  3. Click Edit
    This places the Schedule of Values into edit mode. 
  4. Under 'Add Line Item' do the following:
    • Cost Code. Select a cost code from the drop-down list. 
    • Description. Enter a description in the box. 
    • Type. Choose a type from the drop-down list. 
    • Amount. Enter an amount in this box. 
  5. Click Add
    This adds a line item to the Schedule of Values tab. 
  6. Repeat the steps above to add other line items. 
  7. Choose one of the following:
    • Save & Email. Click this button to save the SOV line item(s) and email the updates to members of the Prime Contract tool's default distribution lists (see Configure Settings: Prime Contract). 
    • Save. Click this button to save the SOV line item(s) on the Prime Contract without sending an email. 
      This saves the SOV line items in the project's Prime Contract tool without sending an email. 
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Last modified
13:40, 10 Apr 2017

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