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Procore

Create Client Contracts

 Limited Release
flag-us.png flag-canada.png The Client Contracts tool is only available to Procore customers in the United States and Canada who have implemented the Procore for Specialty Contractors point-of-view dictionary. To learn more see, What dictionaries and languages are available in the Procore web application?

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.

Examples

When to Create a Single Contract

Most Procore customers who manage their construction projects in Procore create a contract for a single construction project. For example, you are a specialty contractor whose area of expertise is in electrical work, you might create a single contract with a general contractor for the work you perform for that contractor. 

When to Create Multiple Contracts

If a project has multiple funding sources and/or multiple project delivery methods, you can also choose to create multiple client contracts for a single project. If you choose to create multiple contracts in a single Procore project, there are some limitations. For details, see Are there any system limitations when projects have multiple client contracts? Reasons for choosing to create multiple client contracts include: 

  • Multiple Funding Sources. A project can have multiple GCs, each of whom provides an amount of the project funding. For example, a person, a company, a public authority, or a combination of all these examples. See Configure Settings: Client Contracts
  • Multiple Stages. A project can be portioned into stages. For example, you might require separate 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 contracts for the foundation, plumbing, HVAC, and so on.

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

Steps

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

 Important
Before creating multiple contracts, read Are there any system limitations when projects have multiple client contracts?
  1. Navigate to the project's Client Contracts tool.
  2. Click Create.

    create-a-single-prime-contract.png
     
  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.