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Configure Settings: Commitments

Objective

To configure settings for your project's Commitments tool.

Background

Users who have been granted 'Admin' permission can customize the Commitment tool's advanced settings at the beginning of the project. These settings define how the Commitments tool works for your end users. For example, you can select which users are on the tool's default distribution list, whether or not a commitment is set to 'Private' by default, and more. Unless noted otherwise, settings can be adjusted at any time over the course of a project. 

 Important
Before your project users start creating commitments, it is important to ensure the setting for the Number of Commitment Change Order Tiers is as you want it. To learn more, What are the different change order tiers? After a user creates one (1) commitment change order on the project, you cannot change the number of change order tiers on the project. 

Things to Consider

  • Required User Permission:
    • 'Admin' on the project's Commitments tool.

Steps

Contract Configuration

  1. Navigate to the project's Commitments tool.
  2. Click Configure Settings .
  3. Under Contract Configuration, do the following:

    contract-configuration.gif
     
    1. Contracts Private by Default. Place a mark in this checkbox to set new subcontracts to 'Private' by default. This is the default setting.
      Notes:
      • A 'Private' commitment is only visible to users with 'Admin' permission on the Commitments tool and users added to the 'Private' list on the General tab of the commitment.
      • Remove the mark to make commitments visible to users with 'Read Only' permission or above. 
    2. Enable Purchase Orders. Place a mark in this checkbox to provide users with the ability to create purchase orders. This is the default setting.
      Remove the checkmark to prevent users from creating purchase orders.
    3. Enable Contracts. Place a mark in this checkbox to provide users with the ability to create subcontracts. This is the default setting. Remove the checkbox to prevent users from creating subcontracts. 
    4. Number of Commitment Change Order Tiers. Select one of these options:
      Important! It is important to always the setting you are committed to using on the project. After your users create one (1) commitment change order on the project, you cannot change this setting.
      • 1. Single tier (Commitment Change Order). See "What are the different change order tiers?" in the See Also section below.
      • 2. Two tiers (Potential Change Order and Commitment Change Order).
      • 3. Three tiers (Potential Change Order, Change Order Requests and Commitment Change Order)s.
    5. Allow Standard Level Users to Create PCOs: Place a mark in this checkbox to allow users with 'Standard' permissions to create Potential Change Orders. If the mark is removed, only 'Admin' permissions will have the ability to create PCOs.
      Note: This option is only available when you select 2 or 3 Tiers for commitment change orders.
  4. Under Contract Dates, do the following:


     
    1. Place a mark in any of these checkboxes:
      Note: You can enable contract dates to help determine when to start the warranty period or to determine the date when the owner takes responsibility of the project (e.g., for utilities, insurance, and/or security of the property), and to determine when the general contractor and subcontractor(s) are entitled to payment of the contract balance.
      • Enable Approval Letter Date
      • Enable Contract Date
      • Enable Issued on Date
      • Enable Execution Date
      • Enable Letter of Intent Date
      • Enable Returned Date
  5. Under Default Distributions, do the following: 

     default-distribution.png
     
    1. Include Primary Contact in Default Distribution. Place a checkmark in this box to automatically include the person listed as the company's Primary Contact in the Directory tool in the default distribution list. Note: To be included on the distribution list, the vendor record must have a designated primary contact in the Company Directory. See Add a Person to the Company Directory.
    2. Commitment Distribution: Select a user(s) that should always be added to the commitment's distribution list by default when a commitment is emailed.
    3. Commitment Change Order Distribution: Select a user(s) that should always be added to a commitment change order's distribution list by default when a commitment change order is emailed.
    4. Request for Quote Distribution: Select users to be notified when RFQ responses are submitted.
      Note: You have the ability to also modify the Request for Quote distribution within the RFQ.
    5. Invoice Distribution: When an invoice or the subcontractor SOV is submitted for a commitment, the user(s) listed in the Invoice Distribution list will receive an email when thee status of either the Invoice or the subcontractor SOV is set to Under Review.
  6. Under Default Contract Settings, do the following:

    default-contract-settings-new.png
    1. Default Accounting Method for Purchase Orders: By default, purchase orders are configured for "Unit/Quantity Based" accounting. However, you can change the accounting method to "Amount Based" if desired.
    2. Default Accounting Method for Contracts: By default, subcontracts are configured for "Amount Based" accounting. However, you can change the accounting method to "Unit/Quantity Based" if desired.
    3. Default Retainage Percent: Specify a default retainage percent (e.g. 10%) that will automatically be set by default.
    4. Enable Comments By Default: Mark this checkbox to enable a "Comments" subtab where users can add comments and attach files. It's unchecked by default. 
    5. Enable Markup By Default: If enabled, you will see the Financial Markup subtab, so you can set up and apply markup for each commitment. Change Orders will automatically be associated with the correct cost code so changes are accurately reflected in the Budget tool.
    6. Enable Payments By Default: To prevent users from being able to create payments, leave this box unchecked. It's checked by default.
    7. Enable Invoices by Default: If enabled, you will see the Invoices subtab so that invoices can be created. To prevent users from being able to create invoices, leave this box unchecked. It's checked by default.
    8. Show Cost Codes on Invoice PDF by Default: Check this box to show cost codes on invoice PDFs by default. 
    9. Enable Completed Work Retainage By Default: Check this box to enable completed work retainage by default.
    10. Enable Stored Material Retainage By Default: Check this box to enable stored material retainage by default.
    11. Enable Subcontractor SOV by Default: Mark this checkbox to enable a subcontractor schedule of values by default for commitments. See "Edit Commitment Subcontractor Schedule of Values (as a Sub)" in the See Also section below.
  7. Click Update to save your changes.

Invoice Settings

  1. Navigate to the project's Commitments tool.
  2. Click Configure Settings .
  3. Click Invoice Settings.

    invoicing-settings.png
  4. Choose from these settings:
    1. Start Date
      Select a day of the month from the drop-down list to pre-fill the start date of the billing period.
    2. End Date
      Select a day of the month from the drop-down list to pre-fill the start date of the billing period.
    3. Due Date
      Enter which day of the month is the monthly due date. You can leave any of the day pickers blank if you don't want that day to prefill. This is the due date that the subcontractor needs to create (not submit) the invoice by. If the due date has passed, the subcontractor cannot create an invoice, although an admin-level user can create one on their behalf. If the invoice has been created, and the due date has passed, the subcontractor can still edit and submit the Invoice if the status is in 'Draft' or 'Revise & Resubmit'.
    4. Remind Subcontractors to Bill
      Place a mark in the checkbox to send reminder emails after sending billing invitations. You can select how often you want to send reminder emails in the Frequency field.
    5. Custom Email Message
      Enter any custom email text you want included in the emails sent to those invited to create an invoice.
    6. Send a Digest of Under Review invoices
      Specify whether or not you want digest emails to be sent every week on Monday when an invoice has a status of Draft, Under Review, or Revise and Resubmit. These emails will be sent to the people who are listed in the Invoice Distribution drop-down field, located in the Default Distributions section of Commitment Settings. 
    7. Notify Subcontractors when invoices are Approved
      Mark this field if you want notification emails to be sent to subcontractors when an invoice status is set to "Approved" or "Approved as Noted".
    8. PDF Footer Text
      Text you enter here will appear in the footer of invoice PDFs created by a user with admin permissions. It will not appear on invoice PDFs created by a user with standard or read-only permissions. This field is useful for adding a statement regarding local regulations compliance.
    9. Show Amounts Subcontractors Claim​​​​​​​
      If you enable this setting, general contractors will be able to differentiate between what a subcontractor claims and what the general contractor approves. In Australia and New Zealand, enabling this setting will also let general contractors create a payment schedule PDF in response to subcontractor's invoice. See "Review Invoices as an Admin" in the See Also section below. Admin permissions are needed in order to create a payment schedule. See "Create a Payment Schedule" in the See Also section below. The following items are included in the PDF:
      • Total Claimed Amount (excluding retainage)
        Note: This field pulls from the Subcontractor Claimed This Period column of the invoice detail.
      • Total Approved Amount (excluding retainage)
        Note: Regardless of invoice status, this field pulls from "Column E: Work Completed This Period" plus "Column F: Materials Presently Stored" on the invoice detail.
      • Line-by-line claimed and approved amounts in the detail table
      • The overall comment for the invoice
      • A 'Reasons for Difference' table which includes comments on individual line items where there was a difference between the claimed and approved amounts. For information about adding comments, see "Review Invoices as an Admin" in the See Also section below.
    10. Allow Over Billing
      Place a mark in this checkbox to allow the subcontractor to bill over 100%.

See Also

 

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