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Procore

Create a Subcontract

Objective

To create a commitment that is a subcontract between two parties.

Background

A commitment typically represents a contractual agreement between the general contractor who is being paid to manage the construction project and the subcontractor who is hired to perform a specific task. 

Things to Consider

  • Required User Permission:
    • To create a subcontract, 'Admin' level permission on the project's Commitments tool.
      OR
    • To create a subcontract as a user with 'Standard' or 'Read Only' level permission to the Commitments tool, the 'Create Subcontract' granular permission must be enabled on the permission template associated with your user account on the project. See "Grant Granular Permissions in a Permission Template" in the See Also section below.
  • Additional Information:
    • An alternative way to create a subcontract is to award a winning bid and convert it into a subcontract. See "Award a Winning Bid and Convert it into a Subcontract" in the See Also section below.
    • Subcontracts can be transitioned into a Change Order (for 1-tier Change Orders) or into a Potential Change Order (for 3-tier Change Orders).
    • You can only create a Potential Change Order (CO) from a subcontract that's in the 'Approved' status.
    • If your company has enabled the ERP Integrations tool:

      • 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®. 

Steps

  1. Navigate to the project's Commitments tool.
  2. Click Create Subcontract.
  3. Under General Information, do the following:
    • #. Leave the system's default commitment number or type over the existing value to customize the numbering scheme for your project's subcontracts. See How are commitments numbered in Procore?
    • Title. Enter a descriptive title for the subcontract. 
      Notes:
    • Contract Company. Select the company responsible for completing the work on the subcontract (for example, American Construction Co.).
      Notes:
    • Invoice Contacts. Select one (1) or more employees of the 'Contract Company' to designate as the invoice contacts. 
      Notes:
      • After the new commitment is saved, these individuals names will appear in the 'Invoice Contacts' and 'Private' list under General Information in the subcontract. 
      • These names also appear on the Invoice section of the Advanced Settings tab as 'Invoice Contacts.'
      • Invoice contracts receive an Invoice Invitation email and Reminder email. 
    • 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. 
      Notes:
      •  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.
      • These statuses reflect the budget in the ways listed above for the Procore Standard Budget View. To create or modify views, see "Set up a New Budget View" in the See Also section below.
    • Executed. You can use this checkbox to denote that the contract was fully signed and executed.
    • Private. By default, a mark appears in the Make This Visible Only to Administrators and the Following Users checkbox. This means the commitment is only visible to users with 'Admin' permissions on the Commitments tool and any users specified by the following privacy option: 
      • Select a Person. Select one (1) or more users from the list. The users listed here have been granted 'Read-Only' permissions or higher on the Commitments tool. See Manage Permission Templates
      • Allow These Users to See SOV Items. If you place a checkmark in this box, the selected users are also granted 'Read-Only' access to view the commitment's SOV line items. 
    • Default Retainage. Specify the percent of payment retainage that will be withheld (e.g.,10).


      invoicecontacts.png
    • Description: Provide additional information, as necessary.
    • Contract Dates:
      • 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.
      • 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.
    • Additional Information:
      • 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.
  4. 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.
    • NOTE: If you want to create the subcontract and then go directly to the page where you will enter a schedule of values, click the Create & Enter SOV button.
  5. Click the Schedule of Values tab. (To edit your accounting method before adding schedule of value line items, see "Edit Advanced Settings Subtab in Commitments" in the See Also section below. For more information on accounting methods, see "How do I determine my accounting method?" in the See Also Section below)
  6. Click Edit
  7. Add all related line items. To import these fields from a CSV, see Import from a CSV below.
    • Prime Contract Line Item: If you do not have change events enabled, select the related line item from your Prime Contract. If the item is not accounted for in the Prime Contract, select the "Non Budgeted" option.
    • Sub Jobs: Any sub jobs on the project that you have synced will appear in this drop-down. All cost codes related to the sub jobs will appear in the following field. If your company is using the Procore + ERP Integrations tool, see Which integrated ERP systems support the 'Sub Job' concept?
    • Cost Code: Select the appropriate cost code for the item. (e.g. 02-200 - Earthwork)
    • Tax Code: Enter a tax code to use for this line item. This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?.
    • Description: Enter a brief description about the line item.
    • Type: Select the appropriate item type from the drop-down menu. (e.g. Labor or Subcontractor)
    • Amount: Specify the cost of the line item.
  8. Click the add icon (+). If the combination of the sub job, cost code, and cost type are non-budgeted, a pop-up will appear asking you to confirm you want to add this line item to the budget. If OK is selected, this line item will be added directly to the Budget with a "?" next to the line item. See "Add a Partial Budget Line Item" in the See Also section below.
  9. Add additional line items, as necessary.
  10. Save your changes.
  11. When you are ready to forward the subcontract to the subcontracting company, click the Email Contract button. Be sure to change the status of the commitment, as necessary, to keep it up-to-date.

Import from a CSV 

See Also 

The Integration by Ryvit is the product of a partnership between Procore and Ryvit, a third-party developer. Viewpoint, Inc. is not affiliated with this connector. All Viewpoint® Vista™ marks and logos are owned by Viewpoint, Inc.