Create Client Contracts

Objective

To create one (1) or more client contracts for a Procore project. 

Background

A client contract is a formal, legal agreement between a specialty contractor and a general contractor or client. In this relationship, the specialty contractor has a legal agreement with an upstream general contractor or a client.

Things to Consider

• Required User Permissions:
  • 'Admin' level permissions on the project's Client Contracts tool.
    OR
  • 'Read Only' or 'Standard' level permissions on the project's Client Contracts tool with the 'Create Client Contracts' granular permission enabled on your permission template.
• Limitations:
• Before creating multiple contracts on a project, see Are there any system limitations when projects have multiple client contracts?
• Because contract data is sensitive, Procore does NOT send automated email notifications to users or distribution lists. If you need to send a contract to another user by email, see Email a Client Contract.
• Additional Information:
  • Most general contractors use the project's Budget tool to manage costs and contracts with subcontractors. Access to the Budget tool is typically limited to restrict the client or GC financing the project from seeing the budget. 
  • You can add multiple line items with the same cost code and cost type assignments. To distinguish between line items, enter a descriptive summary in the Description field.
  • If you do not want to enter a cost code for a line item, you can enter 'None.'

Prerequisites

• Add the Client Contracts tool to Procore's Project Tools menu. See Add and Remove Project Tools.
• Configure the Client Contracts tool. See Configure Settings: Client Contracts.

Steps

With the required user permissions, you can create one (1) or multiple contracts on a Procore project.

1. Navigate to the project's Client Contracts tool.
2. Click Create.
   
   
    
3. In the General tab, under General Information, do the following:

    Notes

   • There are no required fields when creating a new contract.
   • If you click the Create button without completing any data entry, Procore saves the contract, lists you as its creator, and places it in the Draft status.
   • Sign with DocuSign^©
     If you have enabled the Procore + DocuSign® integration (see Enable or Disable the DocuSign® Integration on a Procore Project), a checkmark appears in this box by default. If you do NOT want to sign the client contract with DocuSign®, remove the mark.

      Tip

     How do you collect signatures with DocuSign? After the data entry for the item is complete, Procore recommends changing the item's status to 'Out for Signature' before clicking the Complete with DocuSign button to launch the DocuSign® application. If you have not previously signed in, you will be prompted to Log In to DocuSign®. Once you are signed in, you can prepare the DocuSign® envelope for signatures. After the signature process is complete, Procore automatically changes the status of the item to 'Approved' and marks the item as 'Executed'. To learn more, see DocuSign®.
   • Contract #
     Accept the default contract number, enter a new number for this contract, or create a custom numbering scheme for this contract and future contracts.

      Notes

     • If you plan to create multiple contracts, Procore assigns new contract numbers in sequential order. For example; 1, 2, 3, and so on. 
     • To use a custom numbering scheme, enter any set of alphanumeric characters. Procore assigns numbers in sequential order using your scheme. For example, enter PC-1, PC-01, or PC-001. 
   • Title
     Enter a descriptive name for the contract.
   • GC/Client
     Select the general contractor or client from the drop-down list.
   • Architect/Engineer
     Select the lead architect for the project from the drop-down list.
   • Contractor
     Enter the company name of the primary contractor managing the construction project. If you are setting up the contract, this will typically be your company's name. 
   • Status
     Select the current status of the contract. Options include Draft, Out for Bid, Out for Signature, Approved, Complete, or Terminated.
     Note: To create change orders and invoices, a contract's status must be set to Approved or Complete.
   • Executed
     Place a mark in this check box if the contract has been fully executed.
   • Make this Visible Only to Administrators and the Following Users
     Place a mark in this check box to limit visibility to users with 'Admin' permission and any users designated in the 'Allow These Users to See SOV Items' checkbox.
   • Allow These Users to See SOV Items
     Mark this check box and select one (1) or multiple users who have 'Read Only' or 'Standard' level permissions on the Client Contracts tool from the drop-down list.
   • Default Retainage
     Enter a percentage amount to represent the retainage amount for your contract's SOV line items. For example, enter: 10%
   • Description
     Enter a more detailed description of your contract.
   • Attachments
     Attach any relevant files to your contract. For example, you might want to attach a digital copy of your signed contract.
4. Under Contract Dates, do the following:

    Note

   An asterisk (*) below denotes a field that may be configured to show or hide in your project environment by an administrator on the Configure Settings page.
   • Date Created
     Shows the date the contract was created. You cannot change this date.
   • Start Date
     Select the construction project's official start date.
   • Estimated Completion Date
     Select the construction project's estimated completion date from the calendar control. 
   • Substantial Completion Date*
     Select the construction project's substantial completion date from the calendar control. 

      Tip

     If the 'Substantial Completion Date' field is configured on your project, Procore automatically updates the value in the 'Substantial Completion Date' column to match the 'Revised Substantial Completion Date' from each Client Contract Change Order (CCCO) after each change order is 'Approved.'
   • Actual Completion Date
     Select the construction project's actual completion date.
   • Contract Date*
     Select the date from the calendar control. This represents the effective date of the contract, which is the date the contract goes into force. 
   • Signed Contract Received Date
     Select the date from the calendar control. This represents the date that the executed contract was received.
   • Execution Date*
     Select the date from the calendar control. This represents the date the contract was signed by all parties. 
   • Issued On Date*
     Select the date from the calendar control. This date represents the date the contract was issued to both parties.
   • Returned Date
     Select the date from the calendar control. 
   • Letter of Intent Date
     Select the Letter of Intent (LOI) date from the calendar control. 
   • Approval Letter Date*
     Select the Letter of Approval (LOA) date from the calendar control.
   • Contract Termination Date
     Select the date from the calendar control. A contract termination date is a date when all parties have met the contract's obligations and terms.
5. Under Additional Information, do the following:
   • Inclusions. Specify any agreed-upon inclusions in the contract.
   • Exclusions. Specify any agreed-upon exclusions in the contract. 
6. Click Create or Create & Email.

    Note

   If you clicked create earlier in this process, the Create and Create & Email buttons' labels are Save and Save & Email.

Repeat the steps above to create additional contracts.

Next Step

• Update the Schedule of Values on a Client Contract

See Also

• Are there any system limitations when projects have multiple client contracts?