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Procore

Configure Advanced 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 configure for the Number of Commitment Change Order Tiers setting as described below. To learn more, see What are the different change order tiers? 
  • Once a user creates a commitment on your project, you are NOT permitted to modify your change order tier setting. 

Things to Consider

  • Required User Permissions:
    • 'Admin' level permission on the project's Commitments tool.

Steps

Contract Configuration

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

    contract-configuration-settings.png
     
    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. RFQs Will Be Due After
      Specify the number of working days to identify the due date for a response to an RFQ. To learn more, see Respond to an RFQ as an RFQ Recipient.
      Notes:
      • The default value for the RFQ due date is seven (7) working days. You can adjust change this setting as needed on each individual commitment.
      • Your company's Procore Administrator can also set which days of the week the system considers as its working days. For details, see Set Project Working Days.
    5. Number of Commitment Change Order Tiers
      Select one of these options:
      • One tier (Commitment Change Order). See What are the different change order tiers?
      • Two tiers (Potential Change Order > Commitment Change Order).
      • Three tiers (Potential Change Order > Change Order Request > Commitment Change Order).
         Important

        Best practices for the change management process:

        • Always select a change order tier setting before you start creating commitments.
        • Once a user creates a commitment on your project, you are NOT permitted to modify your change order tier setting. 
    6. 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 checkmark is removed, only 'Admin' permissions will have the ability to create PCOs.
      Note: This option is only visible and available if you are using the 2- or 3-tier change orders setting. See What are the different change order tiers?
  4. Under Contract Dates, do the following:

    contract-dates.png
     
    1. Mark 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 this setting if your company sends a letter to approve and accept the details of construction work. 
      • Enable Contract Date
        Enable this setting if you want users to log the effective date of the contract. 
      • Enable Issued on Date
        Enable this setting if you want users to log the date the contract was issued. 
      • Enable Execution Date
        Enable this setting if you want users to log the date the contract was signed by all the necessary parties. 
      • Enable Letter of Intent Date
        Enable this setting if you want users to log the date your company sent a Letter of Intent (LOI) to outline the details of a contract between the necessary parties before the contract is finalized. 
      • Enable Returned Date
        Enable this setting if you want users to log the date a contract was returned. 
  5. Under Default Distributions, do the following: 

     default-distributions.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)  and contact(s) listed in the Invoice Distribution list will receive an email when the 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.png
     
    1. Default Accounting Method for Purchase Orders
      Select between the Unit/Quantity Based or Amount Based accounting method. The default setting for purchase orders is Unit/Quantity Based.
    2. Default Accounting Method for Contracts
      Select between the Unit/Quantity Based or Amount Based accounting method. The default setting for purchase orders is Amount Based.
    3. Default Retainage Percent
      Specify a default retainage percent (for example, 10%) that is automatically be set by default.
       Caution
      If your company has enabled the  sliding scale retention settings for use on your invoices, keep in mind that the 'Default Retainage Percent' setting is overridden when performing invoicing. See Enable Sliding Scale Retention Rules on a Commitment's Invoices
    4. Enable Comments By Default
      Mark this checkbox to enable a Comments tab where users can add comments and attach files. This checkbox is cleared by default. 
    5. Enable Markup By Default
      If enabled, you will see the Financial Markup tab, 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
      Place a checkmark in this box to show cost codes on invoice PDFs by default. 
    9. Enable Completed Work Retainage By Default
      Place a checkmark in this box to enable completed work retainage by default.
    10. Enable Stored Material Retainage By Default
      Place a checkmark in this box to enable stored material retainage by default.
    11. Enable Subcontractor SOV by Default
      Place a checkmark in this box to enable a subcontractor SOV by default for commitments. 
  7. Click Update to save your changes.

Invoice Settings

  1. Navigate to the project's Commitments tool.
  2. Click the Configure Settings  icon.
  3. Click Invoice Settings.
  4. Under Default Billing Period, do the following:
    invoice-settings-billing-period.png
    1. Start Date
      Select a day of the month from the drop-down menu to set the start of the billing period on the invoice. The default setting is 1st of the Month.
    2. End Date
      Select a day of the month from the drop-down menu to set the end of the billing period on the invoice. The default setting is 31st of the Month
    3. Due Date
      Select a day of the month from the drop-down menu to set the date by which a subcontractor must create an invoice. The default setting is 15th of the Month
       Notes
      • This setting allows the 'Invoice Contact' on a commitment to create an invoice before the 'Due Date' in an open billing period. See Create and Submit an Invoice as a Subcontractor.
      • This setting does NOT require subcontractors to submit an invoice by the 'Due Date.'
      • After the 'Due Date' passes, invoice contacts can no longer create an invoice. Instead, a user with 'Admin' level permission on the Commitments tool must follow the steps in Create an Invoice on Behalf of a Subcontractor.
      • An 'Invoice Contact' can edit and submit an invoice at anytime as long as it is in the Draft or Revise & Resubmit status. 
  5. Under Emails, do the following:
    invoice-settings-emails.png
    1. Invitation & Reminder Custom Message
      Enter the text that you want to appear in the body of the invitation and reminder messages that the system sends to your subcontractors who will be creating and submitting an an invoice.  Emails are sent to the invoice contacts added to a commitment. See Add Invoice Contacts to a Commitment.
    2. Remind Subcontractors to Bill
      Set the toggle to the ON position to send reminder emails after sending billing invitations. 
    3. Frequency
      Set the toggle to the ON position to set the frequency for reminder emails. Then choose the frequency from the drop-down list. Options include: Every Day, Every 2 Days, or Every 3 Days.
    4. Send a Digest of Under Review invoices
      Set the toggle to the ON position to send a weekly digest email that summarizes invoices with the status of Draft, Under Review, or Revise and Resubmit
    5. Notify Subcontractors when invoices are Approved
      Set the toggle to the ON position to send notification emails to subcontractors when an invoice status is set to Approved or Approved as Noted.
  6. Under Other, do the following:
    invoice-settings-other.png
    1. Sub Invoice PDF Footer Text
      Enter any text that you want to appear on PDF copies of your invoice's footer. Typically, this is used to insert a compliance statement with local regulations. 
      Notes:
      • Text only appears in the footer when the PDF export is performed by a user with 'Admin' permission on the Invoicing tool. 
      • Text does NOT appear in the PDF footer when the export is performed by a user with 'Standard' or 'Read Only' permission. 
    2. 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.
       Note
      For Procore users in Australia and New Zealand, enabling this setting also gives users with 'Admin' permission the ability to create a payment schedule PDF in response to subcontractor's invoice. See Review Invoices as an Admin.  To learn more, see Create a Payment Schedule.
      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.
    3. Allow Subcontractors to Over-Bill
      Place a mark in this checkbox to allow your project's subcontractor to submit an invoice for an amount that exceeds 100% of the commitment amount.
  7. Click Update.

See Also