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Create a Subcontract from a Change Event

Objective

To create a subcontract from a change event.

Background

If a change event leads to a new for a new subcontract,  use the steps below.

Things to Consider

  • Required User Permissions:
    • 'Admin' level permissions on the project's Change Events tool. 
      AND
    • 'Admin' level permissions on the project's Commitments tool. 
  • For companies using the icon-erp-synced2.png ERP Integrations tool: Show/Hide  

    • In order to send the commitment to the ERP Integrations tool to be accepted for export by an accounting approver:
      • Integration by Ryvit. The commitment must have at least one (1) SOV line item with a Integration by Ryvit phase code. In addition, the cost code must be assigned to at least one (1) category. See Assign Default Cost Types To Integration by Ryvit Cost Codes). Important! When a commitment is exported to Integration by Ryvit, it must have a unique commitment number. Procore recommends that the numbering convention you set up for the Commitments tool is preceded by the Project Number and then uses the default numbering system. For example, if your Project Number is 001, your numbering system would be 001-001, 001-002, 001-003, and so on. 
      • 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.
      • Sage 100 Contractor®. A commitment must have one (1) SOV line item with a Sage 100 Contractor® cost code. In addition, the cost code must be assigned to at least one (1) cost type. See Assign Default Cost Types To Cost Codes.
      • 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) cost type. See Assign Default Cost Types To Cost Codes.
      • Viewpoint® Spectrum®. The commitment must have at least one (1) Schedule of Values (SOV) line item with a cost code from the Viewpoint® Spectrum® project. The cost code must be assigned to at least one (1) category. Category assignments must always be updated in Viewpoint® Spectrum®. 
      • Yardi Voyager®. The commitment must have at least one (1) SOV line item with a Yardi Voyager® cost code. In addition, the cost code must be assigned to at least one (1) cost type. See Refresh the Yardi Voyager® Cost Codes on a Project.
      • Sage Intacct®. The commitment must have at least one (1) SOV line item with a Sage Intacct® cost code. In addition, the cost code must be assigned to at least one (1) cost type. See Assign Default Cost Types To Cost Codes.
      • Acumatica Cloud ERP. The commitment must have at least one (1) SOV line item with a Acumatica Cloud ERP cost code. In addition, the cost code must be assigned to at least one (1) cost type. See Assign Default Cost Types To Cost Codes.
      • MRI Platform X®. The commitment must have at least one (1) SOV line item with a MRI Platform X® cost code. In addition, the cost code must be assigned to at least one (1) cost type. See Assign Default Cost Types To Cost Codes.
      • Xero™. The commitment must have at least one (1) SOV line item with a Xero™ cost code. In addition, the cost code must be assigned to at least one (1) cost type. See Assign Default Cost Types To Cost Codes.

    For companies using the icon-erp-synced2.png ERP Integrations tool: Show/Hide  

    • In order to send the commitment to the ERP Integrations tool to be accepted for export by an accounting approver:
      • MYOB Advanced Construction. The commitment must have at least one (1) SOV line item with a MYOB Advanced Construction cost code. In addition, the cost code must be assigned to at least one (1) cost type. See Assign Default Cost Types To Cost Codes.

Prerequisites

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 list, select Create a Subcontract.
    Note: The Schedule of Values (SOVs) will be created from the change event's line items.
    create-subcontract.png
  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 tab.
    • 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.
       In Beta
      Note to users participating in the 'Subcontractor Estimated Completion' limited release beta program. When a user places a change order in the 'Approved' status and it includes a value in 'Schedule Impact' field of the change order, Procore automatically updates the 'Estimated Completion Date' field in the commitment contract by the number of days entered. To learn more about this program, see Commitments: (Beta) Subcontractor Estimated Completion Date.
    • 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.
    • Default Retainage
      Specify the percent of payment retainage that will be withheld (for example, 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.

 

If you would like to learn more about Procore's change events management software and how it can help your business, please visit our construction change order product page icon-external-link.png.