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Create a Subcontract from a Change Event (Next Gen)

Objective

To create a commitment that is a subcontract from change event line items.

Background

A commitment typically represents a contractual agreement between a an owner who is financing the construction project and the general contractor who is being paid to manage the construction project. Typically, a commitment will be created directly from the Commitments tool. See Create a Commitment. However, if a change event results in the need for a new commitment, you can crate the commitment directly from the change event line item by following the steps below.

Things to Consider

  • Required User Permission: 'Admin' on the Change Events and Commitments tab. 
  • If your company has enabled the ERP Integrations tool:

    • In order to send the commitment to the ERP Integrations tool to be accepted for export by an accounting approver:
      • For Dexter + Chaney, the commitment must have at least one (1) Schedule of Values (SOV) line item with a cost code from the Spectrum project. The cost code must be assigned to at least one (1) category. Category assignments must always be updated in Spectrum. 
      • For QuickBooks, the commitment must have at least one (1) SOV line item with a QuickBooks cost code. The cost code does not need to be assigned to a category, because QuickBooks does not support the category concept.
      • For Sage 300 CRE, the commitment must have at least one (1) SOV line item with a Sage 300 CRE cost code. In addition, the cost code must be assigned to at least one (1) category. You can update category assignments in Procore (see Assign Default Categories to Cost Codes).

     

Steps

  1. Navigate to the project's Change Events tool.
  2. Select the change event line items you want to create a subcontract for.
  3. From the Bulk Actions drop-down menu, select Create a Subcontract.
    Note: The Schedule of Values (SOVs) will be created from the change event line items.

  4. Enter general information about the commitment.
    • #: Enter or validate the unique identifier for the commitment. If you are creating the first commitment of a project, Procore will automatically number the first subcontract. (e.g. PO-01-001) Subsequent commitments will automatically be prefilled with the next sequential number based on the format of the first commitment. (e.g. PO-01-002)
    • Contract Company: Select the vendor/company with responsibility for fulfilling the commitment (e.g. American Construction Co.). This vendor/company must exist in the Project Directory. See Add a Company to the Project Directory (Note: For companies using the ERP Integrations tool with Sage 300 CRE, synced vendor/company data will have "(Sage)" appended to their names). 
    • Title: This field is automatically filled with the name of the correlated change event, but you have the ability to adjust to your liking.
    • Status: Specify the status of the commitment. (Default: Draft) Subcontracts with the status set to Draft, Out for Bid, Void, or Terminated will not be reflected on the budget. Subcontracts with the status Out for Signature will be listed in the Pending Cost column, while subcontracts with the status set to Approved or Completed will be listed in the Committed Cost column on the Budget. 
      Note:  A "Terminated" status will not reflect the Commitment in the Budget, so it should only be used if the commitment company has not performed any work on the project.
    • Private: Specify who can view the subcontract. By default, the subcontract is "private" and is only visible to users with 'Admin' level permissions on the Commitments tool. You can also allow non-Admin level users to view the subcontract, if desired. Additionally, you can allow selected non-Admin users to have 'Read-Only' access to the individual line items on the SOV subtab.
    • 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 date when the scope of work was deemed complete.
    • Default Retainage: Specify the percent of payment retainage that will be withheld. (e.g. 10)
    • Executed: You can use this checkbox to denote that the contract was fully signed and executed.
    • Description: This field is automatically filled with the name and description of the correlated change event, but you have the ability to adjust to your liking.
    • 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.
  5. Save your changes. Typically, you will use the Create option instead of the Create & Email option because you may still need to add items in the SOV.
  6. Click the Schedule of Values tab. The Schedule of Values will be created from the change event line items.

 

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