A prime contract is a legal agreement between the party financing a construction project (for example, a single project owner, commonly referred to as the contractee, client, or principal) and the party being paid to manage the project who has full responsibility for ensuring completion of work (for example, the general, primary, or main contractor). Using Procore, you can either create a single prime contract for a construction project or you can also divide the scope of work for a single project between multiple prime contracts.
After creating one (1) or more prime contracts for your construction project, you can then update its Schedule of Values (SOV). For details, see Update the Schedule of Values (SOV) on a Prime Contract.
When to Create a Single Prime Contract
Most Procore customers choose to create a single prime contract for a single construction project. This is the simplest way for general contractors to manage the change process, particularly when a construction project has a single project owner or funding source.
When to Create Multiple Prime Contracts
If a project has multiple funding sources and/or project delivery methods, it may lead a general contractor to create multiple prime contracts:
- Multiple Funding Sources. A project can have many owners. In some scenarios, the general contractor may also be partially funding the job.
- Multiple Stages. A project can be portioned into stages. For example, you might require separate prime contracts for pre-construction, course of construction, and aftercare/maintenance.
- Multiple Phases. A project can be portioned into phases. For example, you might require separate prime contracts for the foundation, plumbing, HVAC, and so on.
- Guaranteed Maximum Price (GMP) Contracts. A project can be fast-tracked or a phased GMP job. For example, you might require multiple prime contracts for each established scope-of-work package.
- Construction Manager as Agent (CMa) Delivery Methods. A general contractor operating as a CMa might need to manage multiple prime contracts between an owner and various contractors.
Yes. When using the Prime Contracts tool to create multiple prime contracts on a single construction project, please be aware of these limitations:
- While you can import budget line items to a Prime Contract's Schedule of Values (SOV), you do NOT have the ability to choose which budget line items that you want to import
Please be aware that you must import all of a budget's line items to each prime contract. Because most customers with multiple prime contracts typically only want to import certain line items from their budget, use caution before using the project budget to create your prime contract's SOVs (see Create a Prime Contract SOV from the Project Budget). Doing so can lead to a need to delete the unwanted line items from each prime contract's SOV. To avoid this extra step, Procore recommends that you choose a different method to add line items to the prime contract's SOV. For more information, see Update the Schedule of Values on a Prime Contract.
- You will be limited to one (1) set of granular permissions for each project
Procore does NOT support the creation of unique granular permissions for each contract on a project. See Grant Granular Permissions in a Permission Template.
- You will NOT be able to sort, add filters, or group report data from the Prime Contract tool in other tools
You will NOT be able to sort change events by each prime contract in the Change Events list page. To workaround this limitation, Procore recommends building a custom project report to show financial data that is sorted, filtered, or grouped by it's respective prime contract. See Create a Custom Project Report.
- You will NOT have the ability to map your commitments or automatically complete cost data
You will not be able to map purchase orders and subcontracts to more than one prime contracts. The system will also be restricted from automatically completing cost data. If the same cost code & cost type combination is used on more than one (1) prime contract, the system will not be able to automatically complete the direct cost amount and/or subcontractor invoice amount to your owner invoice. To avoid this limitation, you can create a unique billing period or sub job for each prime contract.