Create a Subcontract (Legacy)

Step 1: Create a Subcontract

1. Navigate to the project's Commitments tool.
2. Click +Create and select Subcontract from the drop-down menu.
   
3. In the 'General' tab under 'General Information', do the following:
   
   • 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 collect signatures 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®.
   • Number #
     Accept the default number, enter a new number, or create a custom numbering scheme.

     For companies using the  ERP Integrations tool: 

     • In order to send the commitment to the ERP Integrations tool to be accepted for export by an accounting approver:
       • Your integrated ERP system may impose a maximum character limit.
       • Prerequisites, limitations, and considerations might apply depending on the ERP system your Procore account is integrated with. Visit Things to Know about your ERP Integration for details.

      Tip

     How are numbers assigned? To learn how Procore assigns numbers and to understand your custom numbering options, see Can I customize the numbering system for financial objects in Procore?
   • Title
     Enter a descriptive title for the subcontract. 

      Notes

     • If your company has enabled the ERP Integrations tool, be aware that some integrated ERP systems impose character limits on the 'Title' field when data exported from Procore is imported into their system.
     • For details about character limits, see What is the maximum character length for a commitment's 'Title'?
   • Contract Company
     Select the company responsible for completing the work on the subcontract (for example, American Construction Co.).
     Notes:
     • To appear in this list as a selection, add the company to the Project Directory. For details, see Add a Company to the Project Directory or Import Users & Vendors into your Project Level Directory Tool (Procore Imports).
     • You must select a contract company before you can name an invoice contact. 
   • Invoice Contacts
     Select one (1) or more employees of the 'Contract Company' to designate as the invoice contact(s). After saving the subcontract, any users added here will be added to the 'Private' list. You must select a 'Contract Company' before you can select invoice contacts. 

      Note

     It is important to always add at least one  'Invoice Contact' on a purchase order or subcontract. This ensures that important email invitations and automatic email notifications are sent to the appropriate contact. To learn more about the importance of including invoice contacts on your commitments, see What is an invoice contact? 
   • Status
     Assign a status to the subcontract. To learn about the available statuses and which commitment statuses reflect contract amounts in your project's budget, see What are the default commitment statuses in Procore? 
   • Executed. Mark this checkbox to denote that the subcontract was fully signed and executed.

      Notes

     • Many Procore users choose to place a checkmark in the Executed box when placing the commitment into the  'Approved' or 'Complete' status.
     • The time at which your project team places a checkmark in the Executed box should always be aligned with your project's unique business process 
   • Private
     Mark the checkboxes and choose any project users or collaborators from the 'Select a Person' list. To learn more about the privacy options, see Change the Privacy Settings for a Commitment.
     • Make this visible to only administrators and the following users
       Mark this checkbox to limit the visibility of the purchase order to users with 'Admin' on the project's Commitments tool and users specified in the 'Select a Person' drop-down list. 
     • Allow these users to see SOV items
       Mark this checkbox in this box to limit the visibility of the Schedule of Values (SOV) items on the purchase order to users with 'Admin' on the project's Commitments tool and users specified in the 'Select a Person' drop-down list. 
   • Default Retainage
     Specify the percentage amount of retainage to withhold on the first subcontractor invoice. For example, it is a common practice to enter 5 or 10% in this field. 

      Notes

     • The 'Default Retainage' amount set on the subcontract will only affect the amount on the first subcontractor invoice.
     • Editing this value after creating the first subcontractor invoice will NOT affect the retainage amount on subsequent invoices.
     • In order to set or release the retainage amount on a subsequent invoice, complete the steps in Enable Retainage on a Commitment. Next, use one of these Procore tools to set or release retainage on that invoice:
       • Commitments. Set or Release Retainage on a Subcontractor Invoice. 
       • Invoicing. Set or Release Retainage on a Subcontractor Invoice.
     • If you would like to set up retention rules that automatically adjust withheld amounts on your subcontractor invoices, see Enable Sliding Scale Retention Rules on a Commitment's Invoices. 
   • Description
     Provide additional information, as necessary.
   • Attachments. Attach any related materials such as pricing quotes, receipts, signed purchase orders, and so on. You may attach files that have been uploaded to your project or drag and drop files from your local computer.
4. Scroll to the Contract Dates section and enter the following:
   
   • 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.

      In Beta

     Note to users participating in the Field-Initiated Change Orders' limited release beta program. The information below details a configuration that is available to Procore users taking part in the Beta Participant Program for Field-Initiated Change Orders. For more information about this release, see Commitments: Allow Collaborators to Submit Field-Initiated Change Orders. 
   • 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.
5. Scroll to the Additional Information section and enter the following:
   
   • 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.
6. Click one (1) of these buttons:
   • Create. Click this button to save the new subcontract and return to the 'General' tab in view mode. 
   • Create & Enter SOV. Click this button to save the new subcontract and jump to the 'Schedule of Values' tab in edit mode. Continue by entering the SOV.
   • Complete with DocuSign®. Click this button to complete the subcontract with the DocuSign® integration. See Complete a Commitment Contract with DocuSign®.

Step 2: Enter the Schedule of Values (SOV)

There are two ways to enter the Schedule of Values (SOV) on a subcontract:

• Import SOV Line Items from a CSV File
  OR
• Add Line Items to the SOV